Estate Sales Research Articles

In Art We Trust

Whereas trust is the cornerstone of any market’s functioning, it is of particular importance in markets that are unregulated, illiquid, and opaque, such as the art market. This study examines the role of authenticity, as captured by provenance information in auction catalogs, on the probability of auctioned oil paintings, watercolors, and prints being sold; their price formation; and returns. Auction catalogs include four authenticity dimensions: pedigree (ownership “blockchain,” descendance information; type of past owners, such as renowned collectors; and past sales records), exhibition history (e.g., in famous museums or galleries), literature coverage (e.g., in catalogues raisonnés or authoritative press), and certification (e.g., artist’s physical testimonial, expert opinions). We find that trust, proxied by provenance information, increases the probability of a work being sold by up to 4%, leads to hammer price premiums up to 54%, and increases annualized returns by 5%–16%. To address potential endogeneity problems between the provision of provenance and past prices/price expectations, we perform quasi-natural experiments in difference-in-differences settings on auction houses’ provenance policy changes following authenticity litigation and on a contamination effect of the discovery of fakes and forgeries on the oeuvre of forged artists. We also test transactions less affected by past prices, such as estate sales following the death of a collector. The findings on the relation between provenance and prices are robust to artist reputation, artistic style, auction house reputation, art market liquidity, and artist career timing. This paper was accepted by Tomasz Piskorski, finance. Funding: Y. Li gratefully acknowledges supports from the National Natural Science Foundation of China [Grant 72204257] and the Area Studies Fund of Renmin University of China [Grant AS2022002]. This study is partially funded by the Tilburg Alumni Fund. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2022.4633 .

Blockchain and Smart Contracts to Secure Property Transactions in Smart Cities

Cities have been growing at an impressive rate, and with the advancement of technology and digitization, new ways have been proposed to provide cities with a certain level of autonomy and intelligence so that they can self-regulate tasks that currently take a lot of time for both citizens and authorities, and which also have a negative impact on the environment. We have recently experienced one of the most abrupt changes in history as a result of the COVID-19 pandemic, where millions of people, businesses, schools, companies, governments, etc., have had to modify their ways of working, in addition to dealing with many other changes in the present moment, the most important of which is the transition to electronic transactions. This is a chance to progress toward smart city transformation and the implementation of models that assist citizens in their ordinary activities. One of the most common activities is the purchase of real estate. In this study, we propose a model to make the purchase and sale of real estate more equitable and fairer, and not just based on the amount of money. A smart home should be able to identify who its current owner is by functioning as an IoT badge, and, after the subject’s identity has been verified, it should be granted full access to all services, or else it should be blocked and/or alerted to the authorities. The use of smart contracts in a blockchain to transfer ownership of a smart home that includes, as inputs, those interested in acquiring a specific house and, as outputs, a person who chose the system based on the requirements previously established by the government of the Smart City. As a result, susceptibility to fraud or interference by a third person is reduced, and an individual’s security of living in a smart home, and therefore, in a smart city, is strengthened.

The effect of registration in the land register in the framework of real estate sale (comparative study)

Article The effect of registration in the land register in the framework of real estate sale (comparative study) was published on November 1, 2022 in the journal European Property Law Journal (volume 11, issue 1-2).

APPLICATION OF MACHINE LEARNING MODELS FOR PREDICTING PRICES ON THE REAL ESTATE MARKET

The work shows the results of using machine learning to forecast price changes in the real estate market. Economic models and factors affecting price formation are analyzed. This data was used as a basis for building a machine learning model. Special attention is focused on the selection of basic data for building such a model. Various types of regression models, which can be implemented in appropriate software environments, have been analyzed. As a result, a statistical model was created for predicting housing prices using linear regression. It is used to determine trends in price changes on the real estate market in the medium and long term. All libraries used in the development of statistical models are examined in detail, their advantages and disadvantages are analyzed. The following steps of model creation were considered and implemented: import of libraries and modules, developed data reading from the dataset, data analysis, cleaning and average statistical evaluation. As a result, linear regression was used to analyze an array of data obtained from an open resource – the real estate sales and rental site Zillow. The real estate objects described on this resource relate to the city of Seattle. Clustering was used according to the main parameters of real estate objects, in particular, area, location, age. In order to evaluate the ratio of various characteristics of the real estate object, 3D modeling was carried out using the Axes3D designer. Based on the analysis, data visualization was performed using various libraries. The analyzed data is displayed on a map using Folium. Data clustering and testing on real data were implemented, which showed quite good price forecast results. The obtained modeling result was checked on real estate objects and it was established that the accuracy of the model is 76%. Such a high result indicates the correctness of its construction and the rationality of using software solutions for its implementation. In the future, it can be used to analyze similar data sets in this field.

Mimicking the Mode: The Fashionable Dress of Working-Class San Franciscans, 1880–95

In the late nineteenth century, the fashionable garments of women in the United States drew inspiration from the abundance of contemporary sources available to them, ranging from fashion plates in women’s periodicals to sewing patterns and ready-to-wear clothing. As Joan Severa details in her seminal book Dressed for the Photographer: Ordinary Americans and Fashion, 1840–1900 (1995), studio photographs from the time demonstrate precisely how high fashion was reinterpreted by working-class Americans in terms of materials, fit, and wear to suit their particular needs and lifestyles. One portrait album recently discovered at an estate sale illustrates Severa’s thesis, and this article offers a close examination of the album in tandem with contemporary fashion coverage in newspapers and elsewhere, social history, and demographics specific to working-class San Francisco. A focused regional case study, it offers insight into dress codes at a particular place and time that have to date been little studied by fashion scholars.

일본의 중요토지조사규제법 제정과 쟁점

On the basis of national security and territorial integrity, can the state regulate the use of land and buildings around important defense facilities or on border islands? In response, on June 16, 2021, Japan promulgated ‘Important Land Survey Regulation Act.’ In enacting the Important Land Survey Regulation Act, the Japanese government suggested land acquisition in a specific area by foreign capital as a basis for legislation. Due to the cases of land acquisition in a water source, defense facilities, or border islands, anxiety among Japanese residents and the people is growing. As a background of legislation, the Important Land Survey Regulation Act refers to ‘concerned’ foreign capital and state. It is primarily considering Korea and China as regulatory targets. The Important Land Survey Regulation Act is a regulation law based on the maintenance of the base of national life, maritime sovereignty, and national security. In the future, I think the Important Land Survey Regulation Act will have a direct or indirect effect on Korea. From a national security perspective, laws that regulate direct investment in corporate purchases also exist in the United States and Japan. However, regulations on real estate transactions have recently been introduced from the perspective of national security. In the United States, the Foreign Investment Risk Review Modernization Act (FIRRMA) enacted in August 2018 is a representative law. Real estate transactions are being conducted as a subject of review by the US Foreign Investment Committee (CFIUS). From a national security perspective, Japan is reviewing the case of the United States, which regulates the sale of real estate. However, problems with the bill were pointed out in the process of enacting the Important Land Survey Regulation Act. The issue of unconstitutionality of the Important Land Survey Regulation Act was also raised. In this study, I reviewed the issues and the contents of the law in the legislative process of the Japanese National Assembly : the purpose of legislation and the existence of legislative facts, the subject of regulation and delegation of legislation, forest and water sources, enforcement decree and delegation legislation, resident movement regulation, designation of special zones, and pre-reporting system, etc. The following matters were reviewed on the issue of unconstitutionality inherent in the Important Land Survey Regulation Act : legislative purposes and the absence of legislative facts, violation of the principles of parliamentary legislation, principle of criminal justice, recommendations and orders and criminal penalties, land use investigation and personal information, privacy rights, freedom of thought and conscience, self-denial rights, property rights and compensation systems, etc. The Important Land Survey Regulation Act, like FIRRMA in the United States, is based on national security, Japan primarily aims to protect Japan’s Self-Defense Forces facilities and U.S. military facilities. To this end, ownership and use, and transactions of land and buildings in a specific area are regulated. Second, however, it is a law to prepare for border disputes or maritime disputes between Japan and China, Japan and Russia, Korea and Japan. From the perspective of borders, territories, and maritime sovereignty, the Republic of Korea needs to establish new border protection measures for uninhabited islands and islands.

CEO compensation and real estate prices: pay for luck or pay for action?

This paper uses variation in real estate prices to study Chief Executive Officer (CEO) pay for luck. We distinguish between pay for luck and pay for responding to luck (action) by exploiting US GAAP accounting rules, which mandate that real estate used in the firm’s operations is not marked-to-market. This setting allows us to empirically disentangle pay for luck from pay for action, as a change in the value of real estate is only accounted for when the CEO responds to changes in property value. We show that CEO compensation is associated with the following two managerial responses to changes in real estate values: (i) real estate sales and (ii) debt issuance. Overall, we show that CEOs are rewarded for taking value-enhancing actions in response to luck.

FEATURES OF INVESTMENT IN THE REAL ESTATE MARKET

The aim of the article is to study the interaction between the rental market and the real estate market. They are considered by researchers as separate components of the real estate market in the urban development of Kharkiv. The relevance of the study is to determine the return on investment in real estate. The authors set the capitalization rate for different segments of the real estate market, namely – studya, one-bedroom, three-bedroom apartments. My research is of great importance for the prospects of modern urban economy. The question of the dependence of the rent on the cost of housing and the attractiveness of certain segments of the housing market is determined. An analysis of the cost of rent and sale for each segment and depending on the location. Factors that significantly affect the cost of sales and rent have been studied. Conclusions are made about the sustainable development of the real estate market in the city of Kharkiv and promising areas of investment. A study of the residential real estate rental market in Kharkiv was conducted. Data were collected on rental rates as of February 1, 2022 in all districts of Kharkiv. A study of the market of purchase and sale of residential real estate in Kharkov. The collection of real estate value data as of February 1, 2022 was collected in all districts of Kharkiv. Statistics on average prices in different market segments and are presented in a visual form in the table. The capitalization rate is calculated for hotels, one-room, two-room, three-room apartments. It is determined that the capitalization rate for hotels located in rural areas. Zhukovsky, Gagarin, Odesa, Oleksiyivka is about 23%. Thus, certain facilities are the most attractive for investment in the city of Kharkiv. As a result of the market research conducted by the authors, the interaction in the real estate rental and purchase and sale market within the development of Kharkiv's municipal economy was analyzed. Development trends and directions of perspective investment in each segment of residential real estate and depending on the location are determined.

Analysis of Property Marketing Strategy by Utilizing Digital Marketing (Case Study of PT Rizki Mandiri)

Digital marketing has now penetrated several fields, including property. Therefore, it is important for companies to implement digital marketing strategies for broader marketing. The company optimizes online marketing or digital marketing as a way of communicating with target consumers. This is definitely a very effective option. The purpose of this research is to find out how PT Rizki Mandiri Barokah can use digital marketing to increase sales. This study uses a qualitative method with a descriptive approach which was developed to provide information. Data collection techniques used in documentation and interviews. The results of this study are PT Rizki Mandiri Barokah implementing the right marketing strategy through digital real estate marketing to increase real estate sales and make a significant contribution to sales and reach many customers.

Financial Markets and Land Redistribution in 19th Century East Prussia

Abstract How did the emerging market for land in the 19th century influence land distribution in East Prussia? And how did land markets respond to the emergence of financial institutions that relied on land as collateral but also affected the ease and speed of land transfer? Focusing on the example of a specific financial institution – the East Prussian Landschaft – this paper empirically tests the hypothesis that the Landschaft credit institutes, through their provision of privileged credit, enabled noble estates to expand their landholdings. It also tests whether the existence of Landschaft-credit helped noble estates to remain in the hands of nobles and halted estate sales to the emerging bourgeoisie. The analysis combines several datasets on East Prussian landed estates in 1796, 1834 and 1882 and matches these with borrowing records of the East Prussian Landschaft from 1823 and 1829. The study finds that access to Landschaft-credit correlates positively with estate size over the 19th century, suggesting that the Landschaft credit institutes did play a role in ownership concentration. The results regarding the transfer of estates from the nobility to the bourgeoisie show a weaker link between Landschaft-credit and ownership status of estate holders.

Applied sentiment analysis on a real estate advertisement recommendation model

ABSTRACT Recently, the data generated are exploding in the information age. In the post-COVID-19 era, some real estate contracts have been signed online, and online advertisement recommendation has become a new way to reduce the searching cost. Therefore, the model in which real estate online recommendations can be made suitable without user preferences has become a tricky problem. This study uses sentiment and economic data to predict real estate sales and then made an advertisement recommendation from the forecast results. The 2SA-RERec (Two Sentiment Analysis of Real Estate Recommendation) model is proposed, which shows the highest accuracy among the others.

Features of reimbursement of funds on escrow accounts opened for settlements under real estate purchase and sale transactions and under the contract of participation in shared construction in the event of an insured event

Features of reimbursement of funds on escrow accounts opened for settlements under real estate purchase and sale transactions and under the contract of participation in shared construction in the event of an insured event

A Capability Approach to Real Estate Valuation and Value Enhancement

There are numerous financial metrics available in the academic and commercial world to estimate real estate value. Appraisers often use such metrics when advising on the purchase or sale of real estate at a point in time. The first part of this paper proposes a new metric, based on the capability approach, to make an ex-post single period valuation. Further, appraisers often give advice to their clients on actions to take in order to enhance the value of their real estate. This area of value enhancement has received scant attention in the academic literature. In practice, this advice is often based ad-hoc, anecdotal recommendations. The second part of the paper develops seven real estate strengths that can be targeted and provides an ex-ante approach to building real estate value. The valuation model presented in this paper is a pragmatic approach to enhancing both the values of tangible and intangible capabilities of a property by utilizing Expense Leveraged Value Indexes (ELVI).

Statutory and contractual pre-emption right of a tenant of agricultural real estate – selected legal problems

The article aimed to determine whether the legal regulations in the field of the statutory and contractual pre-emption right of a tenant of agricultural real estate provide adequate protection to dependent owners in terms of the possibility of acquiring such land and conducting business activity on it. Secondly, the paper indicated legal problems related to statutory and contractual pre-emption right of a tenant of agricultural real estate and suggested how those problems could be handled. In the beginning, the considerations focused on the statutory pre-emption right for agricultural real estate. It referred to a subjective and objective scope of the right in question, and an attempt was made to determine whether the leased land can be sold to a third party due to the obligation to run a farm in person (only the sale contract allows for exercising the pre-emptive right). Failure to perform the indicated obligations might result in the case being referred to the court by the National Center for Agricultural Support. The second part of the article discussed the contractual pre-emption right for agricultural real estate. The author pointed out the possible concurrence of the statutory pre-emption right of the National Support Centre for Agriculture and the contractual pre-emption right of the lessee. The paper also referred to the problems related to implementing this right due to the requirements that the buyer must meet. In summary, the author, among other things, pointed out the fact that the importance of the statutory pre-emption right of the tenant of agricultural real estate had been diminishing over the years. The position of the lessee of agricultural land in terms of purchasing agricultural land is weakening. Currently, in practice, tenants may rarely use the pre-emption right. The author proposed the introduction of a provision to the Act on Shaping the Agricultural System on an additional consent of the National Support Centre for Agriculture for the sale of real estate under a lease.

Prospects for protection and protection of the rights of investors in residential real estate: judicial and extrajudicial means

The main concepts of the mechanism of regulation of guarantees of protection of the rights of investors of residential real estate were considered in the article. The current state of legal regulation of investors' rights is analyzed and it is established that the existing legal definitions create a «blurred» legal field, which is the basis for abuse in this area. The existing opinion in the scientific literature on the existence of general and special legislation in the field of regulation of the rights of investors in residential real estate is supported. It is established that the draft Law of Ukraine «On guaranteeing property rights to real estate to be built in the future» belongs to the special legislation and, subject to its adoption, will be the main source that structures the «blurred» and broad legislative field presented in special legislation only by the Laws of Ukraine «On investment activity» and «On state registration of real rights to immovable property and their encumbrances». The analysis of foreign investment and other features of investment is left out of this scientific article, as the aim was to study the existing and future guarantees of residential real estate investors' rights under the draft Law of Ukraine «On guaranteeing real rights to real estate to be constructed in the future». Some novelties of the bill are analyzed, in particular the form of the transaction concerning the future real estate object, its essential conditions and it is established that the bill strengthens guarantees of the rights of investors of residential real estate, that introduces the obligatory form of such contracts - purchase, sale. The novelties of such an agreement, in particular, will be mandatory information on the legal grounds for the acquisition of ownership by the developer of land ownership; guaranteeing the first sale of the future real estate, guaranteeing the absence of third party rights to the future real estate. Taking into account the provisions of general legislation, in particular, the provisions of the Civil Code of Ukraine on contracts, it is established that the contract is concluded only after the parties agree on all material terms, so consolidating these novelties as essential terms of the contract will prevent double sale of future object real estate.

Kredyt z opcją „klucz za dług” a dobrowolna sprzedaż nieruchomości

The purpose of the article: The aim of the article is to discuss the loan proposal in the „key for debt” formula contained in Recommendation S of 2019 against the background of voluntary sale of real estate based on art. 35 of the Act on Mortgage Credit and Supervision over Mortgage Credit Intermediaries and Agents [on Mortgage Loans and Loan Agents of 23 March 2017]. Methodology: It was created on the basis of an analysis of the content of legal acts and documents as well as studies of the subject literature. Results of the research: The conclusions contained in the article refer to the possibility of using one of these institutions to free yourself from debt. The analysis shows that a loan in the „key for debt” formula, due to insufficient interest on the part of lenders and borrowers, will not be a real support for borrowers and borrowers will not be able to limit their liability for the loan taken to the value of the real estate being credited.

Legal Analysis of the Tax Legislation of Ukraine in the Field of Alienation and Management of a Real Estate

The primary purpose of this study is to carry out a legal analysis of the tax legislation of Ukraine when concluding transactions for the alienation of real estate. The authors face the task of careful and in-depth consideration of both theoretical and practical issues of legal regulation of taxes and fees in the alienation of real estate, the search for effective mechanisms for their collection, improving the tax burden on the taxpayer. This article presents the main aspects of the taxation of real estate transactions, which are subject to notarization. In particular, the provisions of the legislation on the peculiarities of personal income tax, military tax on purchase and sale transactions, real estate by individuals resident and non-residents of Ukraine, as well as the peculiarities of calculating the fee to the Pension Fund of Ukraine for the purchase of real estate are certain generalized functions of a notary as a tax agent exercising tax control.In the analysis of tax law in transactions for the sale of real estate, the authors used a comparative - legal method to identify similarities or differences in tax rates, the effectiveness of regulatory action of official - documentary methods of expression, the descriptive direction of the material prevails.

Summaries of Papers in This Issue

Summaries of Papers in This Issue

On the Fluctuation of Real Estate Market and Financial Stability

for a long time, real estate and finance contain and influence each other. The development of real estate is inseparable from the support of funds. The size of real estate sales is related to the financial interest rate, and the development of real estate is inseparable from the support of credit from financial institutions. In turn, financial stability affects the development of real estate. This paper discusses the factors affecting the fluctuation of real estate price, and then considers the impact of the rise or fall of real estate price on financial stability. Finally, we use the probability system above mathematics to analyze the relationship between the fluctuation of real estate market and finance.[1]

The case of Thermodom: features of operation and development of construction holding companies in the residential real estate market of Penza

The article addresses the efficiency of construction holding companies that operate in the housing market of oneRussian region. The main trends in the development of construction holding companies in the Penza region areoutlined within the framework of the Strategy for the social and economic development of the Penza region through2035. The co-authors analyze the principal characteristics of Termodom, a Penza-based construction holdingcompany. In particular, they explore the implementation of its market strategy, the cyclical nature of the housingmarket development, cycles of construction project development and implementation, and real estate sales overthe period exceeding the last five years. Research methods include theoretical analysis and empirical researchsuch as statistical data analysis, as well as data description and grouping. The co-authors have studied workson the operation of construction enterprises, research articles, monographs, electronic resources, and legal acts.Research methods, employed by the co-authors, include description, comparison, and classification. The coauthorsuse practical approaches to the monitoring and analysis of the activities performed by various constructionholding companies with a special focus on the milestones of their strategic development and with regard forthe factors of internal and external environments. This approach has enabled the co-author to project the mainpatterns of future sustainable development of these enterprises and the construction industry as a whole.It is necessary to develop a system of legislative, regulatory and economic standards to efficiently solve the problemof unfinished construction projects, to switch over to innovative technologies and implement other innovations andproper development strategies with a focus on investments, innovations, internal and external market potential. Theproper analysis of factors of external and internal environments is a must for the successful attainment of theseobjectives.