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A comparison of the appraisal process for auction and private treaty residential sales

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Author Info

  • Stevenson, Simon
  • Young, James
  • Gurdgiev, Constantin

Abstract

This paper examines residential sale mechanisms from an appraisal perspective and empirically tests for differences in the valuation process for auctioned and private treaty sales. We test the hypothesis that agents use different criteria in preparing the guide prices for auctioned housing, with an element of under pricing in order to aid in the marketing of the property. The empirical tests are undertaken on a sample of auctioned and private treaty sales in Dublin, Ireland for the period of 1997-2004. We find that the evidence is consistent with the hypothesis that agents do adjust valuations for auctions to attract additional potential bidders.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Housing Economics.

Volume (Year): 19 (2010)
Issue (Month): 2 (June)
Pages: 145-154

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Handle: RePEc:eee:jhouse:v:19:y:2010:i:2:p:145-154

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Web page: http://www.elsevier.com/locate/inca/622881

Related research

Keywords: Real estate auctions Auction price premium;

References

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Cited by:
  1. Rosane Hungria-Gunnelin, 2013. "Impact of Number of Bidders on Sale Price of Auctioned Condominium Apartments in Stockholm," International Real Estate Review, Asian Real Estate Society, vol. 16(3), pages 274-295.

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