The role of list price in transaction outcomes
The purpose of the study is to analyze the effect of list price strategies on two transaction outcomes, transaction price and time on market. The study quantitatively tests two hypotheses concerning transaction price and time one market. This is performed using both a hedonic modelling framework, as...
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2022
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fttsvojs:oai:journal.fi:article/102913 2023-05-15T16:50:36+02:00 The role of list price in transaction outcomes Kopsch, Fredrik Helgason, Ólafur Sindri Hansson, Alexandra Johansson, Felicia 2022-01-24 https://journal.fi/njs/article/view/102913 https://doi.org/10.30672/njsr.102913 unknown The Finnish Society of Built Environment Research https://journal.fi/njs/article/view/102913 doi:10.30672/njsr.102913 Copyright (c) 2022 Fredrik Kopsch, Ólafur Sindri Helgason, Alexandra Hansson, Felicia Johansson http://creativecommons.org/licenses/by/4.0 CC-BY Nordic Journal of Surveying and Real Estate Research; Vol. 16 No. 1 (2021) Nordic journal of surveying and real estate research; Vol 16 Nro 1 (2021) 2341-6599 1459-5877 List price sales price real estate agents hedonic pricing duration model pricing strategies anchoring effect trade-off info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 2022 fttsvojs https://doi.org/10.30672/njsr.102913 2022-06-15T22:54:26Z The purpose of the study is to analyze the effect of list price strategies on two transaction outcomes, transaction price and time on market. The study quantitatively tests two hypotheses concerning transaction price and time one market. This is performed using both a hedonic modelling framework, as well as duration modelling. The models are applied to a set of property transactions for the capital region in Iceland, in total 35,000 transactions between 2014 and 2020. This study concludes that the choice of list price does affect transaction outcomes. In particular, a low list price in relation to market value adversely affects transaction price, and speeds up the transaction process. Thus, the findings confirm an existing trade-off between achieving a higher price, or selling a property quicker. The findings of this study may come to practical use in the sales process of real estate, as it may inform real estate agents as to the expected outcomes of different list price strategies. The results of this study are in line with previous findings under different sales processes, thus suggesting that list price strategies work similarly independent of sales processes. As such, this study increases understanding of the role of list prices. Article in Journal/Newspaper Iceland Federation of Finnish Learned Societies: Scientific Journals Online Nordic Journal of Surveying and Real Estate Research 16 1 |
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Federation of Finnish Learned Societies: Scientific Journals Online |
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topic |
List price sales price real estate agents hedonic pricing duration model pricing strategies anchoring effect trade-off |
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List price sales price real estate agents hedonic pricing duration model pricing strategies anchoring effect trade-off Kopsch, Fredrik Helgason, Ólafur Sindri Hansson, Alexandra Johansson, Felicia The role of list price in transaction outcomes |
topic_facet |
List price sales price real estate agents hedonic pricing duration model pricing strategies anchoring effect trade-off |
description |
The purpose of the study is to analyze the effect of list price strategies on two transaction outcomes, transaction price and time on market. The study quantitatively tests two hypotheses concerning transaction price and time one market. This is performed using both a hedonic modelling framework, as well as duration modelling. The models are applied to a set of property transactions for the capital region in Iceland, in total 35,000 transactions between 2014 and 2020. This study concludes that the choice of list price does affect transaction outcomes. In particular, a low list price in relation to market value adversely affects transaction price, and speeds up the transaction process. Thus, the findings confirm an existing trade-off between achieving a higher price, or selling a property quicker. The findings of this study may come to practical use in the sales process of real estate, as it may inform real estate agents as to the expected outcomes of different list price strategies. The results of this study are in line with previous findings under different sales processes, thus suggesting that list price strategies work similarly independent of sales processes. As such, this study increases understanding of the role of list prices. |
format |
Article in Journal/Newspaper |
author |
Kopsch, Fredrik Helgason, Ólafur Sindri Hansson, Alexandra Johansson, Felicia |
author_facet |
Kopsch, Fredrik Helgason, Ólafur Sindri Hansson, Alexandra Johansson, Felicia |
author_sort |
Kopsch, Fredrik |
title |
The role of list price in transaction outcomes |
title_short |
The role of list price in transaction outcomes |
title_full |
The role of list price in transaction outcomes |
title_fullStr |
The role of list price in transaction outcomes |
title_full_unstemmed |
The role of list price in transaction outcomes |
title_sort |
role of list price in transaction outcomes |
publisher |
The Finnish Society of Built Environment Research |
publishDate |
2022 |
url |
https://journal.fi/njs/article/view/102913 https://doi.org/10.30672/njsr.102913 |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
Nordic Journal of Surveying and Real Estate Research; Vol. 16 No. 1 (2021) Nordic journal of surveying and real estate research; Vol 16 Nro 1 (2021) 2341-6599 1459-5877 |
op_relation |
https://journal.fi/njs/article/view/102913 doi:10.30672/njsr.102913 |
op_rights |
Copyright (c) 2022 Fredrik Kopsch, Ólafur Sindri Helgason, Alexandra Hansson, Felicia Johansson http://creativecommons.org/licenses/by/4.0 |
op_rightsnorm |
CC-BY |
op_doi |
https://doi.org/10.30672/njsr.102913 |
container_title |
Nordic Journal of Surveying and Real Estate Research |
container_volume |
16 |
container_issue |
1 |
_version_ |
1766040738478424064 |