A comparison of house prices brought by English auctions and private negotiations in Melbourne

A comparison of house prices brought by English auctions and private negotiations produced evidence that the pricing mechanism matters, with the price maximizing choice a function of the level of market interest.Australian Policy Online (APO)'s Linked Data II project, funded by the Australian Research Council, with partners at the ANU Library, Swinburne University and RMIT

Factors Influencing Auction Outcomes: Bidder Turnout, Auction Houses and Market Conditions

This study provides new evidence on the outcomes of auctions of residential real estate, focusing on the effects of bidder turnout, pricing, market conditions and auction houses. Our analysis of properties offered for sale by auction in Singapore from 1995 to 2000 shows that several variables are significant in explaining why an auction results in a sale or not. These variables included the state of the market, the timing of the auction (year), the number of bidders at the auction and the auction house. We also find that the probability of a sale is higher for distress sales, for more homogenous properties and for those located in the central region. Finally, we provide a sensitivity analysis of how market conditions and the choice of auction house influence the probability of a sale.

Valuations and their importance for real estate investments

This chapter considers the need for valuations of real estate investments and outlines the growth of the valuation profession over the last 150 years across the world. Background market information is provided on selected markets, and valuation standards are discussed and definitions provided. Valuation methodologies are then explained along with reporting requirements and the chapter concludes with an overview of market practice

Some Further Evidence on the Price of Mortgage Contingency Clauses

A sample of row houses is used to investigate the price effects of mortgage contingency clauses in sales contracts. The results indicate a substantial price premium is associated with such contingencies, with the size of the premium indifferent to other transaction-specific variables.

The role of undisclosed reserves in English open outcry auctions

This study considers the role that reserve prices may play in residential property auctions. In comparison to much of the previous empirical work, this study has access to undisclosed reserve prices from English auctions. Consistent with theoretical arguments in the auction literature, the results obtained illustrate that whilst higher reserve prices increase the revenue obtained for the seller, they also reduce the probability of sale. The findings also highlight the importance of auction participation, with the number of individual bidders and the number of bids significant in most specifications

Factors influencing auction outcomes: Bidder turnout, auction houses and market conditions

Journal of Real Estate Research272177-19

Inflation and Real Estate Investment Value

It is demonstrated that the inflation rate must be reflected in the anticipated benefit flows used in investment value models. When flows are left unadjusted, a biased value estimate results. It is also shown that the actual effects of the inflation rate on investment value will depend on the relationships of original cost, the debt/equity ratio, and the level of depreciation expense. Inflation has a fundamentally negative impact on value traceable to capital gains and depreciation effects. This can be offset by the use of debt financing. Copyright American Real Estate and Urban Economics Association.