Real Estate Sales Research Articles

Accelerated Mortgage Process: An Analytical Evaluation

A traditional mortgage process is a simple contract between the mortgage provider (mortgager) and the mortgage holder (mortgagee). Contract, in general, is initiated upon closing of the real estate sale, and the payments are scheduled monthly; with the first payment is due at the first day of the first month after the closing date. The most common traditional mortgage in the US is a 30-year fixed rate loan. Others are 20, 15, or 10 year fixed-rate ones or flexible rate loans with several different maturities.

Momentum or contrarian investment strategies: Evidence from Dutch institutional investors

This paper analyses investment strategies of three types of Dutch institutional investors – pension funds, life insurers and non-life insurers – over the period 1999–2005. We use balance sheet and cash flow data, including purchases and sales of equity, fixed income and real estate. We trace asset reallocations back to both active trading and revaluations and link investment decisions to firm-specific characteristics and macroeconomic variables. Overall, our results indicate that all three investor types tend to be contrarian traders, i.e. they buy past losers and sell past winners. Especially pension funds showed this behaviour in the most turbulent part of the sample – the crash of 2002 and early 2003 – implying that these institutions have a stabilising impact on financial markets when this is needed most. Life insurers tend to be contrarian traders when they have a high proportion of unit-linked policies, while non-life insurers are contrarian when they have a more risky business model.

The Effects of Estate Sales of Residential Real Estate on Price and Marketing Time

This study investigates price and time-on-market effects of estate sales of houses versus typical housing transactions using a sample of 180,921 sold properties. The hypothesis that estate sales sell at a discount and sell more quickly than typical houses is supported by the empirical results. The results indicate that estate sale properties sell at a 3.6% price discount and sell about 3.4% (i.e. approximately 4 days) more quickly.

Auction Versus Negotiated Sale: Evidence from Real Estate Sales

Auction Versus Negotiated Sale: Evidence from Real Estate Sales

Legal framework for collective sale of real estate in Singapore

PurposeThe purpose of this paper is to provide an analysis of the profile and differing perspectives of strata owners (subsidiary proprietors) involved in collective sales in Singapore. It aims to examine their position within Singapore's legal framework, and consider the repercussions of the power‐play between them.Design/methodology/approachThe paper utilises legislation and case‐law to reveal the problematic aspects of the collective sale process through majority rule. Similar legislation exists in Hong Kong, South Korea and Taipei. Data on collective sales from real estate information systems and property analysts are also utilised.FindingsThe findings reveal the dichotomy of concerns between different groups of subsidiary proprietors, namely the owner‐occupiers and property investors. This causes delay and acrimony which characterise many collective sale exercises. This is fuelled by a lack of differentiation in the voting rights of the different groups of subsidiary proprietors. However, Parliament and the Courts have been dynamic and sensitive in seeking to strike a balance between the legitimate concerns of both groups.Originality/valueThe findings assist both groups of subsidiary proprietors to be more alert about the pitfalls and profits in a collective sale. Policy makers in other jurisdictions can learn from Singapore's experience of the collectives sale phenomenon as an avenue for urban renewal. It provides insights to the multiple issues which arise when majority rule can dictate the trajectory of collective sales.

Semantics‐based 3D dynamic hierarchical house property model

Aiming at the increasing critical issues of existing 2D plans and map‐based methodology for integrated management of advanced buildings and related dynamic property rights in complicated 3D built environments, a novel semantics‐based 3D dynamic house property model with hierarchical levels of detail is proposed in this paper, based on comprehensive analysis of 3D house property objects and various application requirements. This model is characterized by: (1) 3D geometric semantics: a 3D geometry hierarchy of exterior and interior of buildings is defined; (2) thematic semantics, comprehensive house property object and related property right relationships are illustrated; (3) temporal semantics, dynamic representation of house property driven by both geometric events and property right events is involved. This model facilitates comprehensive data mining to analyze spatial relationships and dynamic change of property rights in real 3D built environments and can also support the sale and lease of real estate, facility management, house planning and so on.

Balancing Competing Values in the Sale and Redevelopment of Publicly-Owned Real Estate: A Case Study of the Charlotte Coliseum Disposition

This case study describes the circumstances surrounding the Charlotte Coliseum disposition to introduce students to the competing values involved in the sale and redevelopment of publicly-owned real estate. Local governments are rarely able to focus exclusively on profit maximization when making real estate asset management decisions. Other values such as accountability, transparency, equity, and political responsiveness must also be considered. These conflicting interests differentiate real estate transactions in the public sector from those completed in the private sector. The theoretical concepts presented in this case study are intended to provide students with a framework to analyze and manage these conflicting interests in order to help real estate developers and local governments work together to achieve mutually beneficial goals.

Opodatkowanie sprzedaży nieruchomości rolnych podatkiem dochodowym od osób fizycznych

Opodatkowanie sprzedaży nieruchomości rolnych podatkiem dochodowym od osób fizycznych

Sale of Business Assets: Contingent Liabilities and Economic Performance

The sale of real estate or other business or investment assets often entails the transfer of liabilities by the seller of the property. The liabilities involved may be recourse or nonrecourse, fixed or contingent, and may involve expenditures that may be tax deductible, may require capitalization or may be neither deductible or capitalizable. The definition of liability is not always clear. In this article the authors recommended use of a definition included in a then temporary partnership regulation, but that has now been adopted by Reg.1.752-1(a)(4), and the author still believe it should be considered applicable more broadly. They note that it has subsequently be used in several tax shelter cases, particularly ones involving short sale obligations. In this article the authors seek to deal comprehensively with the treatment of liabilities in a variety of contexts, including installment sales and nonrecognition exchanges. Accordingly, despite its age, much if not most of the discussion is still valid.

THE WEB–BASED REAL ESTATE MULTIPLE CRITERIA NEGOTIATION DECISION SUPPORT SYSTEM: A NEW GENERATION OF DECISION SUPPORT SYSTEMS

The negotiations are an inseparable part of the real estate buying and selling process. Currently real estate are characterized by the intensive creation and use of information, knowledge and automation (software, knowledge and decision support systems, neural networks, etc.) applications. It is commonly agreed that a better integration of information, knowledge and automation applications, as well use of voice stress analysis (one of biometric technologies) might be an efficient mean for decision making in real estate negotiations. Voice stress analysis can help the negotiators to distinguish between truth and lies, improve the value of decisions made, significantly speed up real estate sector processes, help to reach a better real estate sales and purchase agreement terms and decrease the overall cost of real estate search and negotiation processes. The authors’ objective is to improve the quality and efficiency of decision support systems. The article analyses scientific research related to negotiations and presents the developed Web–based Real Estate Multiple Criteria Negotiation Decision Support System with integrated voice stress analysis– a new generation of Decision Support Systems. Santruka Derybos yra neatskiriama nekilnojamojo turto pirkimo ir pardavimo proceso dalis. Dabartiniam nekilnojamojo turto sektoriui būdingas intensyvus informacijos, žiniu ir automatizavimo naudojimas bei kūrimas (programine iranga, žiniu ir sprendimu paramos sistemos, neuroniniai tinklai ir pan.). Sutariama, kad geresnis informacijos, žiniu, automatizavimo, taip pat balso streso analizes (biometrines technologijos) integravimas pagreitina nekilnojamojo turto sektoriaus veikla. Balso streso analize gali padeti derybininkams atskirti, kada sakoma tiesa, o kada meluojama, padidina priimamu sprendimu naudinguma, paspartina nekilnojamojo turto paieškos ir derybu procesus, padeda pasiekti naudingesniu pirkimo ir pardavimo sutarties salygu bei sumažina nekilnojamojo turto paieškos ir derybu proceso kaina. Straipsnio autoriai, siekdami pagerinti sprendimu paramos sistemu kokybe ir efektyvuma, analizuoja mokslininku atliktu derybu srities tyrimu rezultatus ir pristato sukurta nekilnojamojo turto derybu internetine sprendimu paramos sistema su integruota balso streso analizes technologija kaip naujos kartos sprendimu paramos sistema.

The CASA story – Lodha Group's foray into mid‐income segments

PurposeThe economic slowdown that hit worldwide in 2008 led to a drastic decrease in real estate sales, especially in the luxury segment. This case describes how a premium real estate company in India overcame this downturn by strategic entry into a new market segment. It discusses the role played by brand management in creating and establishing a sub‐brand in real estate.Design/methodology/approachThe case study presents an in‐depth discussion on various aspects of the strategy adopted based on the options available for sustenance in a slowing economy, evaluation of options, market research, customer segment research, brand extension options, brand architecture and nomenclature used, marketing initiatives taken, and milestones achieved.FindingsThe case discusses the challenges that the premium real estate group was able to overcome by implementation of the adopted strategy.Originality/valueThe paper is multi‐dimensional in nature. It focuses on brand extension strategies and opportunity creation and growth in a recessionary environment, looking at a real life example of the demonstrable and significant results achieved by Lodha Group. This case can be of value to practitioners as well as academicians in the field of brand management and sub‐brand creation in real estate, specifically during an economic slowdown.

Real Estate Advertising and Intraurban Place Meaning: Real Estate Sales Consultants at Work

We examine the mediating role of real estate agency in the residential housing market with reference to intraurban place meaning. Our focus is on real estate advertising because it is the central mediating technique used by sales consultants to incorporate and extend the market activities of a range of actors whose interests and needs are intertwined in the interpretation and representation of people's houses and homes, and those parts of the city in which they are located. We therefore discuss the process of making and deploying such advertising and the ways real estate sales consultants help continually to reinvigorate the meaning of suburbs and other urban localities.

Corporate Real Estate Sale and Leaseback Effect: Empirical Evidence from Europe

Abstract Corporate real estate disposals have increased in Europe during the past few years. In this research paper, we study market reactions of publicly traded European companies' real estate sale and leaseback announcements during 1998–2004. This study is one of the first ones to study the sale and leaseback impact on corporate value with a pan‐European data. We find that the sale and leaseback announcements have on average positive impact to firm's value which is in line with the previous studies. However, we also find that the positive effect is mainly caused by the deals with high transaction value to company market value ratio. Smaller transactions do not create on average any abnormal returns. Our results support the hypothesis that the positive sale and leaseback announcement effect is a consequence of revealed hidden value of the company's assets. Thus, sale and leaseback can also be seen as a mechanism for revealing the hidden value of company's assets to the market.

Nabywanie nieruchomości przez cudzoziemców po akcesji Polski do Unii Europejskiej

The presented article shows the dimension and structure of changes in real-estate sales to foreigners in Poland between years 2004–2006. Transaction number analysis including foreigners and areas of properties purchased by them indicates their enormous growth within but three years following the accession. The growth is the most visible in case of housing and letting properties, particularly retail outlets. As regards scale evaluation of agricultural and forest real estate transactions in comparison with the pre-accession period, worries of Poland’s integration with the European Union did not come true and land was not sold on a massive scale, though land sale growth was serious and amounted to 79% between years 2004–2006. The result of strengthened transactions on the property market following Poland’s accession to the European Union is growth of direct foreign investments, provision of new jobs, introduction of new management and service standards.

Taking Online Maps Down to Street Level

Since MapQuest.com's creation in 1996, online mapping systems have rapidly gained worldwide popularity. With Google Maps leading the charge, new sophisticated AJAX (Asynchronous JavaScript and XML) mapping applications began appearing in 2004. A fairly recent offering of the best online mapping systems is aerial imagery. Such imagery takes the so-called GeoWeb to the next level, providing tremendous value to activities such as real estate sales, insurance, environmental management, municipal government, emergency services, and law enforcement, as well as engaging serendipitous Web users. Yet the imagery often is not detailed enough, and viewing buildings and streets from above can be disconcerting. To address this limitation, Google launched the Street View feature of Google Maps in May 2007. The underlying idea is very simple: Provide an interface that can display street-level images in a natural way that enables convenient navigation between images without losing the map context.

Corporate real estate sales and agency costs of managerial discretion

Purpose – The purpose of this paper is to examine empirically the financing hypothesis of Lang et al. for asset sales in the context of corporate real estate transactions.Design/methodology/approach – Exploiting the concept that monitoring can reduce agency problem of managerial discretion, this paper employs the event‐study methodology and regression analysis to empirically verify the hypothesis.Findings – The empirical results show that the stock market responds more favorably to arm's‐length corporate real estate sales by low agency‐cost firm‐years than those by high agency‐cost firm‐years. The result supports the financing hypothesis that implies a negative relation between stock market responses to asset sales and degrees of agency costs.Research limitations/implications – Given the separation of ownership and control, management cannot be expected to make value‐enhancing decisions on corporate real estate sales without appropriate mechanism to align managerial and shareholder interests.Originality/v...

Safeguarding Specific Investments in Real Estate Purchases

This paper deals with real estate sale contracts between private actors. During contracting which proceeds incrementally, parties cannot ex ante fully determine the "price" of the exchange, because they usually lack the information to do so. Therefore; if the buyer commits himself to buy, he necessarily has to rely on the seller's reciprocal commitment to sell when he specifically invests his resources in the further development of the contracting process. In this context, the seller is in a stronger bargaining position, as he not only has the real estate, but also all the relevant information, on the basis of which the potential buyer grounds his acquisition decision. On the other hand, compared to the seller, the buyer is more vulnerable towards opportunistic behaviour, as he necessarily has to undertake highly specific investments in the preliminary phase, in order to be in the position of making an informed decision. Due to the asymmetry of specific investments in the pre-contractual phase, the weak contractual party has to face, at most, the risk of being subjected to the typical hold-up problem, as the stronger contractual party might have an incentive to exploit the bilateral dependence in order to expropriate the rents accruing to the specific assets. All these sets of circumstances are generally perceived as a 'bundle of complexity' which can lead to serious difficulties in the bargaining as well as the contract formation processes, hindering parties from making rational decisions based on cost-benefit analysis. This article wants to compare the usual real estate purchase procedures in Italy and Germany, pointing out efficiency traps in the course of such transactions, and especially focusing on pre-contractual bargaining situations in which parties have specifically invested their resources. It further argues that the danger of opportunism arises especially during the preliminary negotiation of agreements, and should be considered to be directly proportional to the degree of asymmetry among parties' initial transaction-specific investments.

The Role of Commission Rates and Specialization in the Determination of Real Estate Agent Income

This paper explores the performance of residential real estate agents and the commission structure under which they operate. This study reveals the interrelationship among the number of properties sold by an agent, the dollar volume of sales, and real estate agent income. This research shows that the ability to generate listings is essential to generating higher levels of income in residential real estate sales. The listings become the platform from which agents leverage their human capital in the generation of income. However, the ability to generate listings is a skill related to experience, as well as to the firm and market environment.

Análisis espacial del precio de oferta de la vivienda en el área metropolitana de Cochabamba

La idea principal del presente artículo es identificar cuáles son las características que determinan la fijación del precio de oferta en la estructura del mercado inmobiliario (viviendas de propiedad individual), considerando la heterogeneidad espacial. El estudio fue realizado en la zona metropolitana de la ciudad de Cochabamba, donde la oferta de mercancía inmobiliaria responde a múltiples factores, entre ellos la localización, por lo que en el análisis se utiliza un modelo de precios hedónicos, asociado a técnicas de econometría espacial (I de Moran, modelo de autocorrelación espacial y GWR). Los resultados del trabajo son presentados en mapas temáticos generados en el entorno del Sistema de Información Geográfica ArcGis, los mismos que tienen la propiedad de mostrar de acuerdo a la ubicación el nivel de influencia individual de las variables explicativas (características o atributos) sobre el precio.

Do the Forward Sales of Real Estate Stabilize Spot Prices?

We examine the effect of forward sale (pre-sale) activities on the volatility of spot prices in the real estate market. The abundance of pre-sales data and major changes in regulatory control on the pre-sale market during the 90's in Hong Kong allow us to undertake empirical tests using Hong Kong's real estate data. Our results show that the volatility of spot prices increased significantly after forward sales were severely dampened by regulatory control measures introduced in 1994, but decreased again when the measures were partly relaxed in 1998. The results contribute to the long lasting debate on whether the introduction of a futures market reduces the volatility of spot prices. Previous studies were mainly conducted in markets with low transaction costs, notably financial markets. By utilizing the unique regulatory changes in the pre-sale market of Hong Kong, we are able to conduct an experiment on the conditional volatility of spot prices in a high information-cost environment, thereby shedding light on the important role of forward housing contracts in providing price expectation information for spot trading.