Brand+beauty+utility=property value

Roulac, Stephen E.

doi:10.1108/02637470710824711

Cited by 21 publications

(19 citation statements)

References 5 publications

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“…Numerous studies have indicated such brand values related to housing; for example, Benjamin et al [93] found that branded properties achieved gross rents at least 8% higher than unbranded properties, in addition to hedonic physical characteristics. Roulac [94] found premium prices related to brands, beauty, and utility, where the two latter variables are composed of aspects that could be considered individual costs or benefits in a CBA as discussed above, or which could also be encompassed by the brand, if activated as associations by the brand. The impact of brands on WTP may be positive or negative, depending on the associations they activate and how they are valued by the buyer, and the effect sizes will depend on how much the brands have been marketed or mediated in other ways (e.g., through news or social media) and then internalized by consumers.…”

Section: Brands and Other Signalsmentioning

confidence: 99%

Willingness to Pay for Green Infrastructure in Residential Development—A Consumer Perspective

2020

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This paper investigates the literature and theoretical underpinning of the concept of "willingness to pay" (WTP) for green infrastructure (GI) with consequences for residential development. The benefits of GI in urban settlements include improved air quality, attenuation of the urban heat island, thermal insulation and lower energy bills for green roofs and walls, the creation of social amenity space, a habitat for biodiversity, and stormwater water attenuation. Collectively, these benefits are termed eco-system services and enhance sustainability. The role of GI, the "lungs of the planet", is heavily correlated to atmospheric conditions; high levels of GI improve air quality, which is acknowledged widely with many cities increasing GI to make them more resilient to future predicted challenges with respect to heat and poor air quality. In addition, there is evidence that the biophilia effect enhances human well-being. There are some studies claiming that purchasers pay a premium for property with good GI. However, there is little research about the process in consumers' minds leading to such a premium-if, how, when (under what circumstances), and then to what extent are consumers willing to pay for GI. This process, if better understood, may enable sellers or policy makers to influence the amounts of GI in developments, thus making it possible to enhance the value of GI to buyers. There is some research pointing to factors to be considered when modeling such processes. For developers, knowing the optimum amount of GI would enable them to design and construct developments with maximum purchaser appeal. To do this, stakeholders need to predict the level of WTP amongst potential purchasers for which they need to understand the decision processes behind WTP. In this way, sustainability in residential property development could be optimized. The paper analyzes the literature and theories concerning WTP, focusing on dwellings and GI. Our findings are that some quantitative evidence exists that purchasers pay more for residential property with high levels of GI in some cities, but they do so without any understanding of the possible decision processes leading to those premiums (if, how, when, and then to what extent). The paper proposes a comprehensive conceptual model that may explain buyers' WTP for a dwelling based on a presumed cost-benefit analysis performed by buyers, which has been extended here to include GI and psychological factors. Thus, the paper has a consumer perspective. The model may be used to select variables and test them in empirical studies, and by integrating with other factors in the model, it can attain a more comprehensive understanding of WTP for GI in residential development.

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Section: Brands and Other Signalsmentioning

confidence: 99%

Willingness to Pay for Green Infrastructure in Residential Development—A Consumer Perspective

2020

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“…According to Roulac (2007), the aesthetic derived from a sensory experience of a building and its environs are a key component of value. While this statement is arguably philosophical, Rolston (2002) noted that it is has a strong explanation tied to environmental ethics.…”

Section: Aesthetics In Residential Housingmentioning

confidence: 99%

“…According to his logic, “If beauty, then duty, if not beauty, then no duty”, it is analogous to say with beauty, a building performs its expected duty and without beauty, it does not. According to Roulac (2007), most of the outstanding physical features of a property are explained by their beauty. Aesthetics includes the exterior and interior treatment, architectural detail, the site, its natural features and improvements, as well as the views of both the natural and the built environment.…”

Section: Aesthetics In Residential Housingmentioning

confidence: 99%

“…In a related study, Bourassa et al (2005) arguably noted that it is somewhat an overstatement for many real estate books to premise the most important feature affecting the value of a house on the dictum of location. Rent is often set by landlords whose decisions are shaped by a variety of social as well as economic factors (Roulac, 2007). The factors affecting residential property values are not inherent in the commodity, good or service but created in the minds of the individuals who make up the market.…”

Section: Factors Affecting Residential Housing Take-up and Rentmentioning

confidence: 99%

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Deteriorated aesthetics of external wall paint; the impact on rent and take-up of accommodation in a high-end housing estate

Akinbogun

Aigbbavboa

Gumbo

2020

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PurposeThe factors affecting housing rent and take-up had been largely examined in a cluster. This leaves a dearth of knowledge on the influences of other disparate factors, such as the aesthetics of the building facade. This paper examines the effects of a deteriorated external wall paint on the tenants, rent and take-up of housing located in a high-end housing estate in Akure, Nigeria. The logic is to examine the place of aesthetics among the general factors affecting take-up and rental prices.Design/methodology/approachData were collected through census from 133 respondents residing in houses with deteriorated external wall paint. It applied both descriptive and multinomial logistic regression (MLR) to analyse the data.FindingsFindings reveal that close to 60% of the respondents were psychologically affected by the visible deterioration of external wall paint. This translated to a significance reduction in rent compared with the rental prices of similar houses the appearance of which was not deteriorated. Generally, this study found that aesthetics paled into insignificance in the analysis of the general factors affecting housing take-up and rent. However, it ranked first when these were analysed on the structural characteristics of the house only. This is consistent with findings from the MLR parameter estimate, which shows that those who were psychologically affected are more likely to pay a 15% increase in their current rent to take up a similar house without paint deterioration.Practical implicationsThe findings of this study have implications on practice and theory. First, while the location mantra is a key determinant of rental prices in theory, in practice, rent on comparable houses could differ if the aesthetics of the external wall paint is compromised. This implies an avoidable loss of rent to the owner of a property who compromises the aesthetic quality of the external wall paint in a high-end location where affordability is arguably high. The implication on public authority is that a lower rent may have a negative implication on government revenue and specifically property tax which is normally based on market rent of a property.Originality/valueA novel quality of the study is that it separates the structural characteristics of a house from the general factors in order to examine the specific effect of deteriorated aesthetics of external wall paint on take-up and rent.

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“…It is crucial therefore for real estate agents to display a high level of professionalism and ethical standards in order to protect their clients' interests and their investment assets whilst also justifying the financial trust reposed in them. On this note, Roulac (2001, 2006) submits that ethical behaviour in real estate is an important element in displaying professionalism that garners trust from clients and builds solid relationships that could lead to increased sales, as trust is integral to real estate. More particularly, professionalism in real estate practice is vital because of the high functional visibility of the role real estate agents play given the huge financial resources often associated with real estate transactions.…”

Section: Introductionmentioning

confidence: 99%

Is the real estate profession under threat? Assessing the effect of the involvement of non-professionals in Nigeria real estate agency service provision

Agboola

Jasper

Zakari

2021

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PurposeThis paper examines the effects of non-professionals' involvements in real estate service provision on real estate agency practice in Ibadan Nigeria, in order to provide information that could enhance real estate agency practice in the country.Design/methodology/approachData were gathered through questionnaire administration on a total sample of 232 respondents comprising 82 estate surveyors and valuers, 100 non-professional estate agents and 25 real estate agency service consumers each from the respective clients of the two groups. A respondent-driven sampling (RDS) technique was adopted for data collection and was particularly useful in accessing non-professionals with characteristically less identifiable organizational structure. Data were analysed using mean scores on a Likert type scale while Spearman rank correlation was used to compare and establish if significant differences exist between the perceptions of clients of professionals and non-professionals on the services provided.FindingsThis study revealed that while the involvement of non-professionals in real estate agency practice deprives professionals of opportunities for legitimate earnings and is attributed to incidences of fraudulent transactions in the market, non-professionals often also serve as facilitators of transactions for the professionals. Hence, there seems to be a symbiotic relationship between the two groups and also a tacit validation of the involvement of the former by the latter.Originality/valueThis work contributes to and extends the body of knowledge on non-professionals' involvement in real estate professional practice by providing insights into the effects of activities of individuals who are not members of the real estate profession on real estate agency professional practice, particularly in the context of an emergent and less transparent market.

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Brand+beauty+utility=property value

Cited by 21 publications

References 5 publications

Willingness to Pay for Green Infrastructure in Residential Development—A Consumer Perspective

Willingness to Pay for Green Infrastructure in Residential Development—A Consumer Perspective

Deteriorated aesthetics of external wall paint; the impact on rent and take-up of accommodation in a high-end housing estate

Is the real estate profession under threat? Assessing the effect of the involvement of non-professionals in Nigeria real estate agency service provision

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