The bad-deal illusion for homebuyers using brokerage services: opportunity cost and broker redundancy beliefs

What the paper says

Purpose This paper examines how digital disintermediation and perceptions of broker usefulness influence homebuyers’ satisfaction in real estate transactions. It introduces the concept of broker redundancy beliefs (BRB) to understand the psychological impact of opportunity costs when buyers choose to work with a broker instead of pursuing a direct transaction (FSBO). Design/methodology/approach A survey of 1,964 French homebuyers was conducted to compare outcomes between brokered and direct transactions. Using moderated mediation models, the study assesses how transaction type influences price satisfaction and recommendation intentions, and how these effects are conditioned by BRB. Findings Results show that buyers using brokers report significantly lower price satisfaction and are less likely to recommend this transaction mode, despite similar purchase prices and shorter search durations. The negative impact is entirely moderated by BRB: when BRB is low, the effect disappears. These results suggest that the perception of opportunity cost—rather than actual outcomes—drives dissatisfaction. Research limitations/implications This study highlights how opportunity cost perceptions and broker redundancy beliefs shape buyer satisfaction, offering a behavioral explanation for persistent skepticism toward brokers. Although based on French data, the mechanisms identified are relevant across markets where digital platforms increase the visibility of FSBO alternatives. The findings imply that brokers must actively demonstrate skills, effort, and ethical conduct to counter redundancy perceptions, while policymakers and platform designers should consider how intermediation is positioned in increasingly digital ecosystems. Limitations such as data timing, response rate uncertainty, and lack of seller perspectives point to fruitful avenues for future research. Practical implications In an AI-enhanced real estate environment, brokers must visibly demonstrate skill and effort to counteract perceptions of redundancy. Younger, digital-native buyers with high BRB represent a critical target for repositioning brokerage value. Emphasizing ethical conduct, transparency, and personalized insight may help rebuild trust. Social implications This research shows that buyer dissatisfaction with brokers is not purely economic but rooted in perceived opportunity costs and redundancy beliefs. Such perceptions may erode trust in professional intermediation and accelerate a shift toward peer-to-peer transactions, reinforcing broader patterns of digital disintermediation in society. The findings highlight the importance of transparency, ethical conduct, and visible value creation in maintaining consumer confidence in intermediaries. They also suggest that without renewed credibility, brokerage risks losing its social legitimacy, particularly among younger and more digitally literate generations, with potential consequences for fairness, accountability, and professionalism in housing markets. Originality/value This study provides a novel psychological explanation for declining buyer satisfaction in brokered transactions, despite equivalent outcomes. It highlights how perceived opportunity cost and cognitive bias influence evaluations of intermediation in real estate.