Property Sellers Research Articles

Property selling system with support for validation and verification process

Due to the COVID-19 pandemic, today's property trade transactions through the website have become common. This phenomenon requires the availability of a trustable property commerce website. This research aims to produce a website trusted for sellers and buyers of property in conducting trade. So, we need to know what information is required by the property validation process so that sellers and buyers feel safe committing the transactions. This website will help increase public trust because it is supported by a verification and validation process by third parties regarding property information. The research method begins with distributing questionnaires to discover the needs of property sellers and buyers, then developing a website using the waterfall methodology of the Laravel application framework. The result of this research is to establish a set of information needed for the property validation process that needs to be verified before conducting transactions. Finally, this web application can increase trust by 59.5%, whereas 37.6% gave the maximum value and 8.7% of respondents gave only moderate weight after being tested on 173 respondents.

POST-PANDEMIC ANALYSIS OF HOUSE PRICE PREDICTION IN SURABAYA: A MACHINE LEARNING APPROACH

The COVID-19 outbreak caused a slowdown in the Indonesian economy, as it did in many other impacted nations. Consequently, the housing market in Indonesia, along with other industries, deteriorated. Other post-pandemic issues displace the property industry's priorities in Indonesia. Determining a fair property price is a problem occurring because of the economic slowdown. Property sellers expected their property selling prices to be the same before the pandemic or even increase, but property agents hoped the properties would be selling fast, creating a sense of distrust between the seller and the property agents. This work aims to develop a machine learning-based prediction model for real estate agents to use in determining property prices, with the expectation that the resulting predictions will be more accurate and supported by the data, increasing seller and buyer confidence. Following the suggestion from previous studies, several supervised algorithms such as Linear Regression, Decision Tree, and Random Forest were used to develop the model. Training data were collected from five property agents in Surabaya and as well as web scraping from the online home sales portals. Findings from the study show that Random Forest performs best in predicting with the highest coefficient of determination and lowest error. Using evaluation measures such as Mean Absolute Percent Error (MAPE), the error was calculated to be 23%, which is acceptable for prediction.

Decentralized Web Application for Real Estate Property Transaction using Blockchain and Smart Contract Technology

Real Estate is a wide area consisting of a physical piece of land and the developments on it such as buildings, roads, and other infrastructures. Real Estate can be classified based on the purpose of usage of the property i.e. Residential, Commercial, or Industrial. Since longtime real estate is considered the most secure investment for good returns. But several issues arise in the field of property transactions which are based on the trust that the buyer or seller has in a third-party middleman/broker as well as frauds, inaccurate market statistics, time-consuming processes as well as high processing fees charged by the middlemen/broker. To provide a solution problem a decentralized web application for real estate transactions is proposed in the project. To attain the solution, in this project we propose to design and develop a decentralized web application using blockchain and smart contract technology that avails property buyers and sellers to interact with the help of a private Ethereum network and deploy smart contracts which create a precise and transparent digital property transaction process. This results in the advantages over traditional real estate systems by neglecting the requirement of non-trusted third-party entities, reducing transaction processes as well as transaction costs.

Institutional factors and the timing of land development: a survival analysis applied to the GZM Metropolis in Poland

PurposeThe purpose of the article is to improve the understanding of the role of institutional factors in real estate development. The authors take into account zoning (existence and type), type of right of disposal and type of buyer and seller of property in a multivariate econometric estimation. Dependent variable of the analysis is the time between acquisition of empty land and the application for a building permit, a period when many important development decisions have to be made. This indicator is closely related to debated phenomena like land hording and speculation.Design/methodology/approachThe authors estimate a Cox proportional hazard model with the time between acquisition and application for a building permit as dependent variable and institutional indicators and a number of control variables as explanatory variables. Study area is the GZM Metropolis in the South of Poland. This region shows enough variability in institutional arrangements to allow for this type of analysis.FindingsThe analysis shows that institutional factors significantly influence the real estate development process. In areas that have not issued a zoning plan, the period until the building permit application is significantly longer. When the state is involved in a transaction (as purchaser or seller), it also takes longer until the building permit application is submitted. Although the instrument is usually intended to speed up development, perpetual usufruct implies a longer period until building permit application. Because of the results the authors get for control variables and for robustness checks, the authors are confident of the results of the analysis.Originality/valueTo the authors’ knowledge, this is the first study that deals with the question how institutional factors influence the timing of real estate development. By using data for a region in Poland, the authors also add to knowledge about real estate development in CEE countries.

Public Auction versus Private Negotiation in Residential Property Sales

The U.S. residential real estate market is unlike international markets of Australia, Singapore, and New Zealand, where public auctions are common or even preferred by property sellers, particularly for new homes. In these foreign markets, excess demand and supply shortages drive sale price premiums for auctioned properties. We use residential property sales for 2000-2017 from Montgomery, Alabama, to investigate latent differences between sale prices for properties selling at public auction versus sale prices resulting from privately negotiated transactions closed by real estate agents who report results to their regional multiple listing service. Of the residential properties in our sample, only 0.6 percent sold via auction, and there were no sales of newly constructed homes. Properties sold by auction demonstrate reduced information asymmetry and improved pricing accuracy; however, these properties tend to be in the lower price range, older, lower quality, previously on the market for a more significant amount of time, and those selling at lower prices. In addition to using other econometric methods, we incorporate a factor analysis, a method not often used in real estate research but well suited to our study. New homes sold via private negotiation show the highest orthogonal factor loading. At the same time, our demand and bank-owned property variables have higher factor loadings for publicly auctioned properties. Our conclusions persist even after removing foreclosed properties from the analysis.

AN ESTATE AGENT’S DUTY TO LIST AND MARKET A PROPERTY AT MARKET VALUE

For most people the sale and purchase of a house is a stressful exercise. In fact, a quick internet search reveals that it is rated among the ten most stressful things in life, outranked only by divorce and death of a loved one. This is hardly surprising, since experts have found that moving house is “the most expensive and life-changing financial transaction most people ever undertake”. A wrong decision is not easily rectified, and may have significant financial implications. Fear and uncertainty, not knowing whether the right decision has been made, exacerbate the stress. An informed decision is therefore crucially important, meaning that all relevant information must be gathered and carefully weighed before a final commitment is made. Every seller of immovable property wants to sell at the right price. But what is the right price? The valuation of immovable property is not an exact science, and values change depending on market conditions. Nevertheless, as a point of departure it is safe to say that a property is sold at the correct price if the price offered and accepted matches the property’s market value at the time of sale, the market value being the price a willing buyer would pay to a willing seller on a specific date. It must be properly understood, however, that the market value of a property is not necessarily the price paid by the particular buyer who actually bought the property. The “willing seller” and the “willing buyer” are not the actual persons buying and selling, but a notional willing seller and a notional willing buyer negotiating with each other on an equal footing, assuming that neither party is overly anxious to buy or sell by reason of special or extraordinary reasons: Sher NNO vAdministrator, Transvaal (1990 4 SA 545 (A) 547H). A property can therefore be sold below its true market value, which happens frequently in the case of forced sales and sales between relatives. Many homeowners are not pressed to sell, but are prepared to do so at the right price. For them, discovering that their most valuable investment was sold below its market value may be the worst nightmare come true. Obviously, the best way to avoid this is to be informed about the property’s market value prior to putting it on the market. Here estate agents enter the picture. In practice they handle the vast majority of sales of residential properties, and both sellers and buyers rely heavily on them for advice and assistance. This Note discusses the question to what extent an estate agent is under a legal duty to provide the seller of a house with information about the market value of the property, prior to the marketing and/or sale thereof. More specifically, the focus falls on whether, in the absence of an express instruction or request from the seller, an estate agent is under a legal duty to (a) advise the seller at listing stage that the seller’s asking price for the property is less than its likely market value; (b) market and sell a property at market value; and/or (c) advise the seller, when submitting an offer, that the price offered is below market value. The common law of estate agency in Australia in many respects closely resembles South African law. For that reason the Note commences with a brief discussion of the legal position under Australian law.

Android Based House Mart Application

Several marketing media outlets do not offer adequate information regarding the homes they sell to fulfill property sellers' needs. In addition, purchasers find it difficult to find homes that meet their criteria because media marketing is less effective. Therefore, the purpose of this research is to create an Android-based mobile application capable of making it easier for owners and buyers to advertise and quest for homes. This research employed the study design methods for gathering information, empirical, literature reviews and design methods. The result showed that owners and buyers need better additional promotional media to make things easier for sellers when advertising properties for sale while ensuring buyers find homes that suit their needs. This application is designed to promote users' abilities to sell and buy houses easily.

Information transparency and pricing strategy in the Scottish housing market

PurposeInformation transparency is crucially important in price setting in real estate, particularly when information asymmetry is concerned. This paper aims to examine how a change in government policy in relation to information disclosure and transparency impacts residential real estate price discovery. Specially, this paper investigates how real estate traders determined asking prices in the context of the Scottish housing market before and after the implementation of the Home Report, which aimed to prevent artificially low asking prices.Design/methodology/approachThis paper uses spatial lag hedonic pricing models to empirically observe how residential asking prices are determined by property sellers in response to a change in government policy that is designed to enhance market transparency. It uses over 79,000 transaction data of the Aberdeen residential market for the period of Q2 1998 to Q2 2013 to test the models.FindingsThe empirical findings provide some novel insights in relation to the price determination within the residential market in Scotland. The spatial lag models suggest that spatial autocorrelation in property prices has increased since the Home Report came into effect, indicating that property sellers have become more prone to infer asking prices based on prior sales of dwellings in close vicinity. The once-common practice of setting artificially low asking prices seems to have dwindled to a certain extent statistically.Originality/valueThe importance of understanding the relationship between information transparency and property price determination has gathered momentum over the past decade. Although spatial hedonic techniques have been extensively used to study the impact of various property- and neighbourhood-specific attributes on residential real estate market in general, surprisingly little is known about the empirical relationship between spatial autocorrelation in real estate prices and information transparency.

Are Move-in Ready Properties More Expensive?

A large share of residential properties on sale in developing countries is under construction. This is partly due to lengthy periods of construction. But purchasing under construction properties can be costly and risky because of construction delays and the possibility of stalled construction. Hence, property sellers would expect buyers to pay higher prices for completed or move-in ready properties relative to under-construction ones. Prolonged construction times can also lead to higher resale prices. Buyers with an appetite for risk might purchase new under-construction properties at lower costs and resell these at higher prices, either when construction is complete, or when market prices increase, or both. In this paper, we use residential property listings data from the six largest urban agglomerations (UAs) in India - Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, and Delhi - between 2010-2012 and estimate the sellers' expected premium for move-in ready properties in each UA. Hedonic regressions of listed prices on property attributes reveal that the expected move-in ready premium is statistically significant in Bangalore, Kolkata, Mumbai, and Delhi, and its magnitude varies between 3-14%. At unconditional average property prices, the move-in ready premium is 23-150% of an average household's income in these UAs. We also find that the expected resale premium is significant and varies between 2-16% in three UAs. The resale premium is partly explained by a higher move-in ready premium among resale properties and possible speculative behavior.

Risk Perception and Property Value: Evidence from Tianjin Port Explosion

This paper aims to investigate the perceived risk after the Tianjin port explosion event and its impact on property value. In addition to focusing on the relationship between homebuyers’ risk perception and property sales price, this paper also considers the risk perception of property sellers via the sale-to-list ratio. By using the difference-in-differences method and the sample from the property agent, we found that the explosion event generated a long-time effect on the public and property market in the city of Tianjin. Relative to those properties far away from the explosion site, the sales price and the sale-to-list ratio of the property near the explosion site were detected to have significant drops for the first six months after the explosion event. The temporal decrease of the relative sales price and the sale-to-list ratio are the evidence of short period overreaction from the public, which decays over time. This study demonstrates an indirect method to estimate the perceived risk of the general public and provides valuable insight into sustainable port management policies.

Land and Housing Transactions in Tanzania: an Evaluation of Title Risk Vulnerabilities in Kinondoni Municipality Dar es Salaam

Despite the presumed negative relationship between formal land titles i.e. Land Title Quality (LTQ) and transaction uncertainty i.e. Transaction Failure Risk (TFR), empirical evidence on the same and on TFR’s most vulnerable groups in developing countries is lacking. This paper bridges that gap based on survey data on 1514 owners of incremental housing from Kinondoni Municipality, Dar es Salaam, Tanzania. The analysis is based on binomial logistic regression models which were implemented to predict both credibility- and title-induced TFRs at the time of purchase. The findings suggest that vulnerable groups to TFR include female-headed households and older people who transact informally, purchasers of properties in well developed but periphery areas, those lacking stronger social connections to support their purchase decisions in both formal and informal areas and distant purchasers (from their respective residency at the time of purchase) buying informally. Furthermore, it is noted that as long as the majority property purchasers perceive a relatively higher title than credibility-induced TFR at purchase, transaction deterrence is mostly attributed to informality in land titles rather than the presence of unscrupulous informal real estate agents or untrustworthy property sellers. Formalisation of land titles in the municipality may therefore benefit property market participants i.e. by reducing perceived TFR only if the majority of property holders have or use title to facilitate transactions. Massive formalisation of properties through systematic adjudication is therefore favoured than sporadic adjudication of land rights for a healthy property market.

Spatial dependence in apartment transaction prices during boom and bust

Due to the illiquid and intransparent nature of housing markets, property sellers and buyers may hugely rely on information about transaction prices of nearby properties with comparable characteristics to agree upon a transaction price. We show that the spatial dependence in house prices is more pronounced in a rising housing market than in a falling market and can be associated with behavioural biases such as sellers’ loss aversion tendency or herding of buyers. Using a spatio-temporal autoregressive model for 30,541 apartment transactions in Seoul, South Korea between 2006 and 2015, we find that spatial dependence in house prices is eight time higher in a boom as opposed to a bust. This shows huge asymmetric spatial effects across apartment transactions which suggests that neighbouring property prices can serve as an appropriate benchmark during a rising market but they may not be suitable to capture the housing market dynamics in a falling market. This implies that behavioural aspects such as sellers’ loss aversion should be taken into account in the price formation when house prices are falling.

Анализ принципов ведения кадастра на современном этапе

A comparative analysis of the principles of the cadastre in the most developed countries and in Russia. It is shown that some of the principles of cadastre, it is advisable to introduce into the Russian legislation. Such principles include the principle of Renzenberger, as well as the principles of Ruoff and Kuranda. The Russian inventory has more than twenty years, however, it cannot be considered complete, as registered in cadastre only 60 % of real estate. Full filling of the cadastre information on real estate is possible, if we abandon the application of the principle of reference. Unlike foreign domestic inventory the inventory contains errors that complicate the procedure of registration of immovable property. In addition, the domestic inventory is not the only source of information about the property that causes the ambiguity of the information about the same object. Important is also that the damage caused inaccurate inventory information bona fide buyer or seller of real property under current law, does not exceed one million rubles, regardless of the value of the lost object. Foreign inventory recognizes the property owner the main participant of the changes, however, the Russian legislation allows for the adjustment of the information object without the application of the property owner. See principles of the foreign inventory is useful for the maintenance of the national cadastre. This will simplify the process of state cadastral accounting of real estate, reduce the time of its formation and to increase the reliability of materials of the Unified state register of real estate.

Determinants of repurchase intentions of real estate agent services: Direct and indirect effects of perceived ethicality

Research on the psychological determinants of consumer repurchase decisions for professional services is limited. The authors focus on real estate agents and develop a model of determinants of repurchase intentions of agent services. The model was tested on a sample of clients (property sellers) for a Scandinavian real estate agent. The perceived ethicality of the service provider was found to influence repurchase intentions in three different ways. Clients’ co-production motivation moderated (increased) the effect of perceived ethicality. The findings have important implications for researchers and managers of real estate agent services.

Selling a house and the decision to use a real estate broker in Norway

Purpose– The purpose of this paper is to examine the widespread of property sellers choosing to sell by themselves or through an estate agent, what characterises them and the reason for their choice. In addition the paper contains comparisons of the gap between sales price and asking price between the sales methods and satisfaction with the sales process. This study is the first study of these phenomena carried out in Norway.Design/methodology/approach– The data used for this study was obtained from a national survey including 1,649 house sellers. A logistic regression analysis is used to analyse the impact of household’s characteristics on the sales method.Findings– The main findings of this study are that 83 per cent of the house sellers used an estate agent through the whole sales process and differences in the choices are related to urbanisation, age and education. The most important reason for preferring a real estate broker is that doing the sale on your own is considered too much work. Conversely, the most important reason for doing the sale on your own is that estate agents are too expensive. Those selling without an estate agent were more satisfied and the gap between sales price and asking price was smaller than for those selling through a real estate broker.Originality/value– Issues concerning competition within the market for estate agents should be central topics for property management. Property sellers selling their property by themselves are an important contribution to increase the competition in the market for estate agents. This issue has not been on the agenda in Norway, or in Europe, in the same way as in the USA. This is probably due to the complexity in the legislation and strict laws within property sales in Central and Southern Europe. However, in Norway, UK and in the Nordic countries, the legal system is not complicated. It is rather the lockout of private individuals from the housing web sites and the fact that the property sellers are not familiar with this kind of transaction that has prevented property sellers to sell their house by themselves. Today Norway is one of few countries with a booming housing market, which also has increased the commission for estate agents. From 2010 private individuals got access to advertise their house on the housing web sites in Norway. These have influenced the focus on alternative sales methods.

Integrating BIM and augmented reality for interactive architectural visualisation

Purpose – The purpose of this research is to investigate a new approach with its supporting building information modelling (BIM) + augmented reality (AR) tool to enhance architectural visualisation in building life cycle. Traditional approaches to visualise architectural design concentrate on static pictures or three-dimensional (3D) scale models which cause problems, such as expensive design evolution, lack of stakeholders’ communication and limited reusability. The 3D animated fly-throughs still occur on a computer screen in two-dimensions and seem cold and mechanical, unless done with advanced production software. Design/methodology/approach – The method of this research included case study and interview. It was, first, stated, from the building process perspective, how the BIM + AR for Architectural Visualisation System (BAAVS) was realised by integrating two types of visualisation techniques: BIM and AR, and four stages of building life cycle. Then the paper demonstrated four case studies to validate the BAAVS. Finally, four interviews were made with each case manager and team members to collect feedback on utilising BAAVS technology. Questions were asked in the areas of benefits, drawbacks and technical limitations with respect to BAAVS. Findings – Feedback from the stakeholders involved in the four cases indicated that BAAVS was useful and efficient to visualise architectural design and communicate with each other. Originality/value – This paper demonstrates BAAVS that integrated BIM and AR into architectural visualisation. The system supports an innovative performance that allows: designers to put virtual building scheme in physical environment; owners to gain an immersive and interactive experience; and property sellers to communicate with customers efficiently.

Contesting Disclaimer-of-Reliance Clauses by Efficiency, Free Will, and Conscience

Mark Twain’s famous remark, “The report of my death was an exaggeration,” has become most apt in recent years as it pertains to the purported demise of the rule of caveat emptor in real estate transactions. An ancient maxim of law, caveat emptor puts a buyer on his guard to discover defects in things purchased, with no general duty by a seller to disclose defects of which he has knowledge. Despite the apparent abrogation of the concept by legislative and judicially-imposed- disclosure obligations, a new phenomenon has emerged that allows a seller of real property, or related real property services, to easily maneuver around the requirement of disclosure through strategic, rent-seeking conduct.

Do Objections to Capital Value Influence House Prices?

The bigger the capital value (CV) of your house the bigger the rates bill. In New Zealand CVs provide a basis for levying rates at the local government level. At the time of a general revaluation, some property owners object to their CV. Property sellers sometimes use the current CV in marketing efforts for their properties and CV becomes a reference point in buyers’ decision making. The aim of this study is to understand if successful CV objections affect prices of objectors who subsequently sell their property. To test price impacts, properties whose owners objected to the 2008 revaluation were identified and analysed within the residential sales transactions for Auckland City between Q4 2008 and Q4 2009. Contrary to anecdotal evidence, the empirical results indicate that increasing CV does not have a statistically significant effect on sales prices.

(((((( ) (Leasing of Immovable Property and Registration Issues (New Approach))

В статье рассматриваются проблемы, связанные с государственной регистрацией классического (или трехстороннего) лизинга (с участием лизингодателя, пользователя и продавца) недвижимого имущества. По мнению автора, проблемы порождаются неверным представлением юридической природы лизинга, получившим законодательное закрепление. Указанных проблем не возникает, если исходить из предлагаемой автором композитарной трактовки классического лизинга, согласно которой он представляет собой комбинацию договора купли-продажи между продавцом и EC и договора аренды между LC и лизингополучателем, где: EC (emptor compositus) - покупатель, состоящий из лизингодателя и лизингополучателя, между которыми определенным образом распределяются права и обязанности покупателя; LC (locator compositus) - арендодатель, состоящий из продавца и лизингодателя, между которыми определенным образом распределяются права и обязанности арендодателя.The author discusses issues connected with the state registration of the classical (or tripartite) leasing (involving the finance lessor, the user, and the seller) of immovable property. In the author’s opinion, the problems arise from the misconception of legal nature of leasing, which has found legislative recognition. The said problems do not arise if one proceeds from the proposed by the author compositary interpretation of the classical leasing, in accordance therewith the latter is a combination of a sales contract between the seller and the EC and a lease contract between the LC and the user, where: EC (emptor compositus) – is the buyer made up of the finance lessor and the user, between which, in a certain way, the rights and duties of the buyer are distributed; and LC (locator compositus) – is the lessor made up of the seller and the finance lessor, between which, in a certain way, the rights and duties of the lessor are distributed.

Do the Phrases "Below Market Value" or "Below Appraised Value" in MLS Listings Convey Useful Information to the Market?

Property sellers and their agents sometimes use the phrases "below market value" and"below appraised value" in marketing efforts for their properties. This study questionswhether or not there are price and/or time-on-market effects associated with thesephrases. The findings indicate that both phrases convey useful information to the marketand are not mere puffery in MLS listings. The phrase "below market value" leads to lowertransaction prices of approximately 7% and the phrase "below appraised value" leads tolower transaction prices of approximately 3%. The results reveal no significant time-on-marketeffect for the phrases "below market value" or "below appraised value."