Abstract
In housing markets there is a trade-off between selling time and selling price, with pricing strategy being the balancing act between the two. Motivated by the Home Report scheme in Scotland, this paper investigates the role of information symmetry played in such a trade-off. Empirically, this study tests if sellers’ pricing strategy changes when more information becomes available and whether this, in turn, affects the trade-off between the selling price and selling time. Using housing transaction data of North-East Scotland between 1998Q2 and 2018Q2, the findings show that asking price has converged to the predicted price of the property since the introduction of the Home Report. While information transparency reduces the effect of ‘overpricing’ on selling time, there is little evidence to show that it reduces the impact of pricing strategy on the final selling price in the sealed-bid context.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.