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Paper eres2017_366:
Listing strategies and housing busts: cutting loss or cutting list price?

id eres2017_366
authors Liu, Xiaolong; Arno Van der Vlist
year 2017
title Listing strategies and housing busts: cutting loss or cutting list price?
source 24th Annual European Real Estate Society Conference in Delft, Netherlands
summary Listing your house for sale has been referred to as ‘the most agonizing and among the most stressful decision’ that go with selling a home. This may seem particularly so for homeowners expecting to sell for less than their original purchase price. In this paper, we investigate whether listing strategies among homeowners who experience a potential loss differ from those not experiencing a potential loss. We use MLS data from the Randstad area of The Netherlands over 2008 - 2013 for which we have detailed information regarding the listing strategies. We find that those homeowners who expect a loss; set higher initial list prices, are more likely to and more aggressively revising their list prices downwards, and set final list prices still above those of homeowners not expecting a loss upon initial listing. Further, we find sellers' motivation to be an important underlying driver in listing strategies.
keywords housing; loss; property transaction; list price revision
series ERES:conference
type paper session
discussion No discussions. Post discussion ...
ratings
session Housing Markets & Economics
last changed 2017/11/18 16:20
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