How well do individuals predict the selling prices of their homes?

Hugo Benitez-Silva, Selçuk Eren, Frank Heiland () and Sergi Jimenez-Martin

Journal of Housing Economics, 2015, vol. 29, issue C, 12-25

Abstract: The accuracy of property values estimated by homeowners is an open empirical question that requires an evaluation of the reported values using a market assessment. Using information on selling prices from the Health and Retirement Study and the American Housing Survey, and after accounting for possible measurement error in reporting and selection regarding those who we observe selling, we find evidence that homeowners overestimate the value of their properties by around 8% with an estimated range between 3.4% and 12.7% (95% CI).

Keywords: Housing prices; Self-reported housing values; Panel data; Instrumental variables; Health and Retirement Study; American Housing Survey (search for similar items in EconPapers)
JEL-codes: C33 C34 E21 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (40)

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Related works:
Working Paper: How Well Do Individuals Predict the Selling Prices of Their Homes? (2009)
Working Paper: How Well do Individuals Predict the Selling Prices of their Homes? (2008)
Working Paper: How well do individuals predict the selling prices of their homes? (2008)
Working Paper: How well do Individuals predict the Selling Prices of their Homes? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:29:y:2015:i:c:p:12-25

DOI: 10.1016/j.jhe.2015.04.001

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