An Analysis of the Price Formation Process at a HUD Auction

Marcus T. Allen () and Judith Swisher ()
Additional contact information
Marcus T. Allen: Florida Atlantic University Fort Lauderdale (Davie) FL 33314, http://www.fau.edu/
Judith Swisher: Florida Atlantic University Fort Lauderdale (Davie) FL 33314, http://www.fau.edu/

Journal of Real Estate Research, 2000, vol. 20, issue 3, pages 279-298

Abstract: This study considers whether auctioned properties sell for different prices than they would bring through private negotiation. After reviewing the procedural aspects of HUD auctions, we compare the observed prices of properties sold at one such auction with predicted market values based on assessment ratios for the region to detect any discount or premium. We also consider whether the order of sale of the auctioned properties affects observed prices. We find that sample properties sell at a significant discount relative to predicted market values and that prices tend to increase as the auction proceeds, holding quality of the properties constant.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2000
View list of references View citations in EconPapers

Downloads: (external link)
http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol20n03/01.279_298.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: http://EconPapers.repec.org/RePEc:jre:issued:v:20:n:3:2000:p:279-298

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://aux.zicklin.b ... u/jrer/about/get.htm

Access Statistics for this article

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

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