The Market for Real Estate Presales: A Theoretical Approach

Autor:	Peng Liu, Fang Wu, Robert H. Edelstein
Rok vydání:	2011
Předmět:	Economics and Econometrics business.industry Financial economics Theoretical models Real estate Urban Studies Accounting Presales Market price Literature study business Market value Finance Financial services
Zdroj:	The Journal of Real Estate Finance and Economics. 45:30-48
ISSN:	1573-045X 0895-5638
DOI:	10.1007/s11146-011-9318-z
Popis:	Presale agreements have become a pervasive worldwide practice for residential sales, especially in many Asian markets. Although there is a burgeoning empirical literature on presales agreements, only a few papers actually address their theoretical foundations. We create a set of interrelated theoretical models for explaining how and why developers and buyers engage in presale contracts for non-completed residential dwellings. Given heterogeneous consumer beliefs about future market prices, developers and buyers enter into presale agreements to mitigate, two intertwined, fundamental risks: those of real estate market valuation and default. Our analyses are consistent with prior empirical findings and provide additional theoretical insights for understanding the market for presales.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::8a3b75317424205cf48ed2cc008bb5d9 https://doi.org/10.1007/s11146-011-9318-z Zobrazit plný text záznamu Full text from SpringerLink