This study is the first to lend empirical support to anecdotal media reports that indicate that real property buyers are willing to pay price premiums based on property names. Using a standard hedonic price model, we explore the price effects of property names that include the terms â€œcountryâ€ and â€œcountry clubâ€ within a neighborhood. We find that buyers assign a premium of 4.2 percent for the term â€œcountryâ€ and an additional 5.1 percent for the term â€œcountry clubâ€ in the property name. We also find that wealthier buyers tend to be the leaders in paying this price premium, but that buyers are less willing to pay these premiums during recessionary times.
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
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 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 ().