The Effect of Listing Price Changes on the Selling Price of Single-Family Residential Homes
| Autor: | Bruce L. Gordon, Daniel T. Winkler |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
TheoryofComputation_MISCELLANEOUS
Producer price index Economics and Econometrics 050208 finance Financial economics 05 social sciences Mid price TheoryofComputation_GENERAL Urban Studies Clean price Reservation price Accounting 0502 economics and business Price on application Econometrics Price level Business 050207 economics Listing (finance) GeneralLiterature_REFERENCE(e.g. dictionaries encyclopedias glossaries) Finance Limit price |
| Zdroj: | The Journal of Real Estate Finance and Economics. 55:185-215 |
| ISSN: | 1573-045X 0895-5638 |
| DOI: | 10.1007/s11146-016-9558-z |
| Popis: | Sellers of unsold residential real estate usually have difficulty deciding whether to change the listing price and, if so, by how much. The purpose of this study is to determine what factors lead to listing price changes and the effect of listing price changes on the net selling price received by sellers. This study uses a sample of 13,461 single-family home sales in which 4308 had a selling price reduction during the listing period. The average original listing price for properties with one or more listing price changes is 18 % larger compared to properties where the listing price is unchanged; this difference narrows to 9.7 % when comparing final listing prices. The results indicate that the probability of a listing price reduction and the percent reduction are positively associated with house size, vacant property status, and a weak economy. A sample selection bias appears to exist for list price reduction properties, and while overpricing of properties often leads to a listing price reduction, the effect of a listing price change on the net selling price is estimated to be two to three times the given reduction in the listing price. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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