List Prices, Sale Prices and Marketing Time: An Application to U.S. Housing Markets

Haurin, Donald R.; Haurin, Jessica L.; Nadauld, Taylor D.; Sanders, Anthony B.

doi:10.1111/j.1540-6229.2010.00279.x

Cited by 95 publications

(68 citation statements)

References 17 publications

(22 reference statements)

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“…Next, we specify the DOM model with DOM being a function of the characteristics of the house, market conditions, uniqueness, competition, the list price residuals and ownership where uniqueness, competition, DOP , effort level and experience are represented by Z in the equation below. The uniqueness or atypicality measure is computed using a two‐step procedure proposed by Haurin (1988) and Haurin, Haurin, Nadauld and Sanders (2006) 17 . This equation allows assessment of the impact of agent‐owned houses on marketing time.…”

Section: Methodsmentioning

confidence: 99%

Discount Brokerage in Residential Real Estate Markets

Rutherford¹,

Yavaş²

2012

Real Estate Economics

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Transaction costs are thought to affect asset prices and market liquidity, but the direction and magnitude of these effects continue to be the subject of debate. In the single-family residential market, discount brokers offer to list a house for a lower price and thus reduce the transaction costs associated with obtaining a match. In this article we obtain empirical estimates of the price and liquidity impact of a seller selecting a discount broker to market a singlefamily residential property. The unique data set allows for the identification of residential properties that were listed by a discount brokerage firm. The empirical results confirm the predictions of our theoretical model. Using a sample of 318,221 listings and 243,625 sales, we find that houses listed by discount brokers sell at prices similar to non-discount brokerage listings, but are less likely to sell, and when they do sell, take approximately three days longer to sell. The results indicate that lower transaction costs do not impact housing prices in this market, but that they are related to asset liquidity.In this article, we examine discount real estate listing agreements and their impact on the welfare of sellers of residential property. Sellers in real estate markets face imperfect information about the market value of their assets and the location of potential buyers. This creates a role for real estate agents who can help sellers by employing their superior search technology to locate prospective buyers and by using their superior knowledge of the market to suggest an optimal asking price. In return for their services, agents typically receive a percentage (generally 5 to 7%) of the transaction price as commission. The significance of the role played by agents is evident: they accounted for the sale of approximately 84% of single-family dwellings in the housing market in 2008. 1 Based on the expected number of home sales of 5.8 million units, the average selling price of $214,500 and the typical commission rates of 5 to

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Section: Methodsmentioning

confidence: 99%

Discount Brokerage in Residential Real Estate Markets

Rutherford¹,

Yavaş²

2012

Real Estate Economics

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“…However, an investor utility theory for heterogeneous investment properties and their attributes is not well developed. The literature on heterogeneous buyer behavior (Bokhari and Geltner 2011), seller behavior (Haurin et al 2010), and investor sentiment (Clayton et al 2009) is emerging, but nascent at present. Because investors achieve wealth maximization objectives by obtaining rights to future net rents, it is reasonable to assume that investors achieve these objectives through ownership of CRE attributes and thus the aggregation of attribute implicit prices correspond to total net rents.…”

Section: Rationalization For An Alternative Approachmentioning

confidence: 99%

Determinants of Hotel Property Prices

Corgel

Liu

White³

2015

J Real Estate Finan Econ

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Pricing commercial real estate has its foundations in present value theory. Recent improvements for accessing transaction data have stimulated interest in commercial property hedonic pricing models, the structures of which follow traditions in single-family real estate in that the implicit prices of property characteristics and sitespecific variables represent city and national market conditions. Adding present value variables has become increasingly common to account for general market conditions. We test two hedonic pricing models; one that follows the residential tradition and another that departs by incorporating city-specific net operating incomes and the discount rates. Modeling prices in these alternative ways allows for recognition of the relative contributions of property, city, and capital market determinants. Empirical testing relies on a sample of hotel transactions from 2005-2010. The responsiveness of hotel cash flows to market changes is an important consideration. We find that models with property characteristics perform about the same as models that also include present value variables. A plausible explanation for this phenomenon is that implicit prices corresponding to property characteristics and site-specific variables appear to reflect income streams associated with city and nationwide economic conditions.

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“…a dwelling with 150 m², 1 room, in the 10 th floor without elevator is rather atypical. Nowadays, atypicality is a widely recognised factor in hedonic survival regressions as seen in Krainer (1999), Anglin et al (2003), Bourassa et al (2009), Haurin et al (20102013) and Hoeberichts et al (2013), among others.…”

Section: Introductionmentioning

confidence: 97%

Exploring the determinants of liquidity with big data – Market heterogenity in German markets

Cajias¹,

Freudenreich²

2017

24th Annual European Real Estate Society Conference

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Purpose -The purpose of this paper is to examine the market liquidity (time-on-market) and its determinants for rental dwellings in the largest seven German cities with big data.Design/methodology/approach -The determinants of time-on-market are estimated with the Cox proportional hazards model. Hedonic characteristics as well as socioeconomic and spatial variables are combined with different fixed effects and controls for non-linearity to maximise the explanatory power of the model.Findings -Higher asking rent and larger living space decrease the liquidity on all seven markets, while dwelling's age, the number of rooms and proximity to the city centre fasten the letting process. For the linear and non-linear hedonic characteristics heterogeneous implications are found.Practical implications -The findings are of interest for institutional and private landlords as well as governmental organizations in charge of housing and urban development.Originality/value -It is the first paper to deal with liquidity of rental dwellings in the seven most populated cities of Europe's second largest rental market by applying the Cox proportional hazards model. Furthermore, the German rental market is of particular interest, as approximately 60% of all rental dwellings are owned by private landlords and the German market is organized polycentric.

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List Prices, Sale Prices and Marketing Time: An Application to U.S. Housing Markets

Cited by 95 publications

References 17 publications

Discount Brokerage in Residential Real Estate Markets

Discount Brokerage in Residential Real Estate Markets

Determinants of Hotel Property Prices

Exploring the determinants of liquidity with big data – Market heterogenity in German markets

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