A Comparison of Real Estate Marketing Systems: Theory and Evidence

The objective of this paper is twofold. One is to provide a search-theoretical model of the marketing choice of the seller. The model explains the seemingly contradictory empirical results as to whether a seller raises the price of his house to pass on a portion of the broker's commission to the buyer. The second is to offer empirical evidence on the impact of the MLS on the price. We control for selectivity bias in the data and obtain a surprising result that the decision to use a multiple listing service decreases the sale price of a property.

Public Land Use Constraints: Lot and House Configuration

The public sector constrains the size and shape of lots and buildings via zoning ordinances and subdivision regulations. Zoning ordinances utilize setback requirements, open space ratios, minimum lot area and floor-to-area ratios. Subdivision regulations utilize street and sidewalk spacing requirements. This article provides a framework in which one can analyze the precise impact of these control devices. The choice of developers who face these controls is discussed in terms of a rule of thumb and in terms of a model of profit maximization.

Optimal Property Management Strategies

This paper examines the optimal operation strategies for income properties. Specifically, the rental rate and the operating expense should be set at levels to maximize the return on investment. The results suggest that for a given demand curve of a specific rental property, there exist optimal levels of the income ratio, the operating expense ratio, and the vacancy rate. With a Cobb-Douglas demand curve, we derived closed form solutions of these optimal ratios for a given income property. The relevant local comparative statics of these ratios also are derived. These comparative statics also provide insight into the optimal building size and optimal rehabilitation decisions. An empirical case study was conducted to demonstrate how the model can be applied in real life situations.Rental Property, Vacancy Rate; Operating Strategy, Profit Optimization

A History of Site Valuation Rules: Functions and Empirical Evidence

It is commonplace to think of the price of land as an amount per unit of area. This may be inappropriate, because it appears that the value of land increases at a decreasing rate as area increases in some situations, and frontage and depth may affect value differently. Various rules have been developed to aid in the process of estimating site value. This paper describes the functional forms of these rules and provides estimates of the parameters of these rules utilizing historical data. The hypotheses that value is a concave function of both frontage and depth cannot be rejected.

Market share in the real estate brokerage industry / BEBR No.902

Includes bibliographical references (p. [17])

Power Lines and Land Value

This study attempts to detect whether power lines, power line towers, or both have an impact on the selling price of proximate residential land and to measure the magnitude of these impacts if they exist. Secondly, it attempts to determine whether any impact which is found to exist is diminished through time possibly as the growth of trees obscures the view of towers and lines, as attitudes change, or as uncertainty about the effects diminishes. Finally, the extent to which the impact extends beyond lots with an easement is considered. Throughout, the focus is on the value of land even though the use of developed property sales would ordinarily preclude such a focus. The approach is that of a hedonic price index in which selling price is Cobb-Douglas function of a number of property characteristics with land area being just one of the characteristics. By shifting the other property characteristic variables, it is possible to obtain predictions of land value alone.

The Value of Mortgage Assumptions: An Empirical Test

This study provides an empirical test of the two main techniques for calculating the financing premium for assumption financed sales, cash equivalence adjustment (CEA) and financed-fee valuation adjustment (FFVA). The results indicate that both the CEA and FFVA computational techniques overvalue the premium associated with assumption financing. A variation of the empirical test is considered that differentiates this study from previous studies. This variation allows for a test of the hypothesis that the proportion of the financing premium capitalized into the sales price is a function of the loan-to-price ratio. It is concluded that this hypothesis cannot be rejected.

Area, time, centrality, and the value of urban land / 471

Includes bibliographical references (p. 11)

A Note on the Optimal Design of an Office Building

This study examines the economics of the optimal footprint area, atrium area, and height of an office building. We extend the work of Doiron, Shilling and Sirmans (1992) by incorporating realistic revenue and cost functions and reverting to the sufficient conditions of optimaility.

Elevation and cholera: an epidemiological spatial analysis of the cholera epidemic in Harare, Zimbabwe, 2008-2009

BACKGROUND: In highly populated African urban areas where access to clean water is a challenge, water source contamination is one of the most cited risk factors in a cholera epidemic. During the rainy season, where there is either no sewage disposal or working sewer system, runoff of rains follows the slopes and gets into the lower parts of towns where shallow wells could easily become contaminated by excretes. In cholera endemic areas, spatial information about topographical elevation could help to guide preventive interventions. This study aims to analyze the association between topographic elevation and the distribution of cholera cases in Harare during the cholera epidemic in 2008 and 2009. METHODS: We developed an ecological study using secondary data. First, we described attack rates by suburb and then calculated rate ratios using whole Harare as reference. We illustrated the average elevation and cholera cases by suburbs using geographical information. Finally, we estimated a generalized linear mixed model (under the assumption of a Poisson distribution) with an Empirical Bayesian approach to model the relation between the risk of cholera and the elevation in meters in Harare. We used a random intercept to allow for spatial correlation of neighboring suburbs. RESULTS: This study identifies a spatial pattern of the distribution of cholera cases in the Harare epidemic, characterized by a lower cholera risk in the highest elevation suburbs of Harare. The generalized linear mixed model showed that for each 100 meters of increase in the topographical elevation, the cholera risk was 30% lower with a rate ratio of 0.70 (95% confidence interval=0.66-0.76). Sensitivity analysis confirmed the risk reduction with an overall estimate of the rate ratio between 20% and 40%. CONCLUSION: This study highlights the importance of considering topographical elevation as a geographical and environmental risk factor in order to plan cholera preventive activities linked with water and sanitation in endemic areas. Furthermore, elevation information, among other risk factors, could help to spatially orientate cholera control interventions during an epidemic