The purpose of this paper is to probe the role of brokers on residential real-estate price escalation in rnAddis Ababa. Real estate housing market is one of mechanisms that transfer ownership rights of a house rnwith a combination of different attributes that is defined by its prices. The process and procedure in Real rnestate housing market is complex both for the sellers or buyers. Market participants lack sufficient rninformation to undertake transactions. The paper tries to examine the influencing factors of the Real rnestate housing market and show how brokers facilitate the market. The price of the real estate house is rnnot determined arbitrarily. The implicit price of residential housing characteristics concerning the rnphysical and location of Addis Ababa are examined in this paper. The elements of sales comparison of rnresidential real estate house depend on a package of attributes thatÂ· are, valued by the consumers. A rnmodel that incorporate for the quality of the house, age, area, number of rooms, neighborhoodrnavailability of such as market, elementary school etc. are presented and discussed. Hedonic price model rnis used to estimate the most important determinant factors. Data is collected from households' that buy rnresidential Real estate houses in Addis Ababa. The data collected were analyzed using the multiple rnlinear regression models. The result of the study suggested that the price of a house has increased rntremendously over a short period of time. Most buyers of a house prefer plot size, older and structurally rnpoor quality houses. The paper tries to demonstrate the behavior of residential house market consumers rngiven the present housing condition of the city. The policy implication of this study is that the rnimplementation of the urban land and housing policy of the city administration should be accompanied rnby improvement in the residential house market.