The impact of buyer‐type on house price

Abstract

Purpose -This paper aims to report the results of a study conducted to determine whether investors systematically pay less for single-family houses than do buyer/residents. Design/methodology/approach -Data from 3,443 single-family house transactions were subjected to regression analysis. Findings -Investors in this study paid 13.24 percent less, on average, than buyers who reside in the property.Research limitations/implications -The study was limited to transactions occurring during a single year in one American city. Future research could test whether the results apply in other locations. The study did not consider the influence of seller-type on transaction price. Future studies could incorporate this facet of the transaction. The results have implications for property tax authorities and fee appraisers because the presence of investors in a housing market may introduce a two-tiered transaction set which could distort the assessment process and/or the indicated value calculated by fee appraisers using the comparable sales approach. Originality/value -This paper provides useful information on the impact of buyer-type on house price.

A Study on Housing Price in Klang Valley, Malaysia

“…However, the speculation is qualified through the number of confirmer transaction as the transaction will be increased itself from time to time. Active speculation in the market will direct increase the price of housing in the area due to the expectation of the investor in this market (Larsen, 2010). But it will also lead to price boom and bubble in this area.…”

Urban floods and residential rental values nexus in Kumasi, Ghana

“…The study revealed that different building types have different critical factors influencing their rental values within different residential densities (Adegoke, 2014). Blair and Larsen (2010) Nilsson et al (2006); Woolley et al (2008) and Kleinhans (2009) on the importance of social relationships among residents.…”

“…Subsequently, they recommended that for residential properties to command competitive rental values, amenities likewall-fence and windows with burglar proof amongothers should be provided (Olujimi & Bello, 2009). Larsen (2010) reported on a study to determine whether investors pay less for single-family houses than do buyer/residents. This was done by subjecting transactional data from 3,443 single-family houses to regression analysis and it was confirmed that on average investors systematically pay 13.23 per cent less than those residing in the houses (Larsen, 2010).…”

“…Larsen (2010) reported on a study to determine whether investors pay less for single-family houses than do buyer/residents. This was done by subjecting transactional data from 3,443 single-family houses to regression analysis and it was confirmed that on average investors systematically pay 13.23 per cent less than those residing in the houses (Larsen, 2010). Other studies supported location as one of the key determinants of residential property rental value (for example, Olujimi & Bello, 2009;Howley, 2009;Aliyu et al, 2012).…”

“…The dynamics of rental values depend on the elasticity of both demand and supply of a particular rental space type (Geltner et al, 2006, Lamond et al, 2007Larsen, 2010Larsen, , 2012. The rental market is highly segmentedand tends to be local rather than national, and specialized around building usage categories (Geltner et al, 2006).…”