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Is the more the merrier? Buyers’ onsite viewing activities and housing search outcomes

Author

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  • Hu, Maggie Rong
  • Kuang, Weida
  • Li, Xiaoyang
  • Shi, Yang

Abstract

This study investigates the underexplored role of onsite viewing activities in the housing search process. By incorporating buyer heterogeneity into the housing search model of Courant (1978), we show that buyers with higher private valuations tend to view more properties onsite and ultimately pay higher prices. Utilising a proprietary dataset from the largest real estate agency in Beijing, our analysis reveals that increased onsite viewings significantly enhance both the likelihood of a transaction and the final purchase price. We establish causality by employing an instrumental variable approach that leverages exogenous variations in heavy pollution and rainfall, which hinder buyers’ ability to conduct onsite house viewings. More intensive onsite viewings raise transaction price as they reveal a buyer’s higher private valuation to the seller. Besides, onsite viewings also function through reducing information asymmetry and improving match quality.

Suggested Citation

  • Hu, Maggie Rong & Kuang, Weida & Li, Xiaoyang & Shi, Yang, 2025. "Is the more the merrier? Buyers’ onsite viewing activities and housing search outcomes," Journal of Banking & Finance, Elsevier, vol. 180(C).
    • Handle: RePEc:eee:jbfina:v:180:y:2025:i:c:s0378426625001633
    DOI: 10.1016/j.jbankfin.2025.107543
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    Keywords

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    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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