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Determinants of Bargaining Outcome in Single-family Housing Transactions: An Empirical Examination

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  • Shunfeng Song

    (Department of Economics, College of Business Administration, University of Nevada at Reno, Reno, NV 89557-0016, USA)

Abstract

Using a hedonic regression model, this paper examines determinants of bargaining outcome in single-family housing transactions. It divides potential factors into three broad categories: dwelling attributes, site amenities, and seller's and buyer's characteristics. Results with use of 1990 data for the Reno-Sparks area in Nevada show that bargaining outcome is determined by seller's asking price, buyer's household income, and some of the dwelling attributes and site amenities. This paper concludes that factors affecting housing price do not necessarily affect bargaining outcome, and first-time home buyers do not statistically bargain less than repeat home buyers.

Suggested Citation

  • Shunfeng Song, 1995. "Determinants of Bargaining Outcome in Single-family Housing Transactions: An Empirical Examination," Urban Studies, Urban Studies Journal Limited, vol. 32(3), pages 605-614, April.
    • Handle: RePEc:sae:urbstu:v:32:y:1995:i:3:p:605-614
    DOI: 10.1080/00420989550012997
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    Cited by:

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    2. Steven Caudill & Claudio Detotto & Dominique Prunetti, 2020. "Bargaining power in apartment sales in Corsica: A latent class approach," Urban Studies, Urban Studies Journal Limited, vol. 57(13), pages 2754-2772, October.
    3. Steegmans, Joep & Hassink, Wolter, 2017. "Financial position and house price determination: An empirical study of income and wealth effects," Journal of Housing Economics, Elsevier, vol. 36(C), pages 8-24.
    4. Stephen A. Samaha & Wagner A. Kamakura, 2008. "Assessing the Market Value of Real Estate Property with a Geographically Weighted Stochastic Frontier Model," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 36(4), pages 717-751, December.
    5. Shunfeng Song, 1998. "Home buyers' characteristics and selling prices," Applied Economics Letters, Taylor & Francis Journals, vol. 5(1), pages 11-14.
    6. Rocco Curto & Elena Fregonara, 2019. "Monitoring and Analysis of the Real Estate Market in a Social Perspective: Results from the Turin’s (Italy) Experience," Sustainability, MDPI, vol. 11(11), pages 1-22, June.
    7. Zhuo Chen & Seong-Hoon Cho & Neelam Poudyal & Roland K. Roberts, 2009. "Forecasting Housing Prices under Different Market Segmentation Assumptions," Urban Studies, Urban Studies Journal Limited, vol. 46(1), pages 167-187, January.
    8. Charles Ka Yui Leung & Kelvin Siu Kei Wong & Patrick Wai Yin Cheung, 2007. "On the Stability of the Implicit Prices of Housing Attributes: A Dynamic Theory and Some Evidence," International Real Estate Review, Global Social Science Institute, vol. 10(2), pages 66-93.
    9. Terrence Clauretie & Paul Thistle, 2007. "The Effect of Time-on-Market and Location on Search Costs and Anchoring: The Case of Single-Family Properties," The Journal of Real Estate Finance and Economics, Springer, vol. 35(2), pages 181-196, August.

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