My Home's Market Value: An Active Market Pricing Model
Keywords:Price, Price Theory, Marketing, Negotiation
AbstractThe current US residential real estate market is recovering although price growth remains stagnant. The non-linear pricing model examined represents a first investigation in the area of a single variable, polynomial correlation model. Using data from Easton, Connecticut demonstrated that when sellers set initial prices outside of a computed 95% confidence interval for similar properties no offers are forthcoming prior to asking price reductions and offered properties remain on the market longer.
Asabere, P. K., & Huffman, F. E. (1993, Nov.). The impact of settlement period on sales price. Journal of Real Estate Finance & Economics, 7(3), 213-319. Retrieved from http://pages.jh.edu/jrer/
Bureau of Labor Statistics. (2013). Occupational Employment and Wages, May 2013 [Government spreadsheet]. Retrieved from http://www.bls.gov/oes/current/oes419022.htm#st
Changha, J., Soydemir, G., & Tidwell, A. (2014, Apr-Jun). The U.S. housing market and the pricing of risk: Fundamental analysis and market sentiment. Journal of Real Estate, 36(2), 187-219. Retrieved from http://pages.jh.edu/jrer/
Forgey, F. A. (1996). Search and liquidity in single family housing. Real Estate Economics, 24(1), 273-292. Retrieved from www.realestateeconomics.com
Kluger, B. D., & Miller, N. G. (1990). Measuring real estate liquidity. Journal of the American Real Estate and Urban Economics Association, 16(1), 213-237. Retrieved from http://areuea.org/
Lin, Z., & Vandell, K. D. (2007, Fall). Illiquidity and pricing biases in the real estate market. Real Estate Economics, 35(3), 291-330. http://dx.doi.org/10.1111/j.1540-6229.2007.00191.x
Listingbook Website. (n.d.). http://www.listingbook.com/home/
McMillen, D. P. (2012, Winter). Repeat sales as a matching estimator. Real Estate Economics, 40(4), 743-771. http://dx.doi.org/10.1111/j.1540-6229.2012.00343.x
National Association of Realtors. (2014). Profile of home buyers and sellers. Retrieved from http://www.realtor.org/
Rosenthal, E. R. (2011, February). A pricing model for residential homes with Poisson arrival and a sales deadline. Journal of Real Estate Finance and Economics, 42(2), 143-161. http://dx.doi.org/10.1007/s11146-009-9191-1
Sirmans, S. G., Macpherson, D. A., & Zietz, E. N. (2005). The composition of Hedonic pricing models. Journal of Real Estate Literature, 13(1), 3-41. Retrieved from www.areuea.org
Smith, B. C. (2009). Spatial heterogeneity in listing duration: The influence of relative location to marketability. Journal of Housing Research, 18(2), 151-171. Retrieved from http://www.aresnet.org/pages/page_content/primary_publications_journal-of-housing-research.aspx
United States Census Bureau. (2010). Housing Vacancies and Homeownership (CPS/HVS). Washington, DC: Government Printing Office.
United States Government Accountability Office. (2005). Real estate brokerage: Factors that may affect price competition (d05947.pdf). Washington, DC: Government Printing Office.
Yavas, A., & Yang, S. (1995, Fall). The strategic role of listing price in marketing real estate: Theory and evidence. Real Estate Economics, 23(3), 347-368. Retrieved from http://www.wiley.com.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).