Pricing, Exposure and Residential Listing Strategies

John D. Benjamin () and Peter T. Chinloy ()
Additional contact information
John D. Benjamin: American University Washington, DC 20016, http://www.american.edu/
Peter T. Chinloy: american University Washington, DC 20016, http://www.american.edu/

Journal of Real Estate Research, 2000, vol. 20, issue 1, 62-74

Abstract: Sellers of houses signal their motivation or willingness to sell through price and contractual provisions in their listing agreements. A pricing strategy is for motivated sellers to set their listing prices at or below estimated market values as determined by the quality and other characteristics of the house. An exposure strategy is to set a listing price above estimated market value, and increase advertising and broker activity in order to generate more favorable offers. Pricing and exposure are competing strategies and may be revealed in listing contracts through the inclusion of a buyer-broker provision. Empirical results for the Washington, D.C. area indicate that brokers concentrate their time on sellers following the pricing strategy as opposed to those who follow the exposure strategy. There is a tradeoff between price and exposure. The results demonstrate a positive relationship between increasing listing price and using buyer brokerage.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/past/vol20n0102/04-61_74.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jre:issued:v:20:n:1:2000:p:62-74

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://pages.jh.edu/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is currently edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323.
Bibliographic data for series maintained by JRER Graduate Assistant/Webmaster ().