 Listing strategies and housing busts: Cutting loss or cutting list price?Xiaolong Liu and Arno van der Vlist Journal of Housing Economics, 2019, vol. 43, issue C, 102-117 Abstract: Listing a house for sale has been referred to as the most agonizing and stressful decision associated with selling one’s home. This may seem particularly true for homeowners expecting to sell for less than their original purchase price. In this paper, we investigate whether listing strategies among homeowners who face potential loss differ from those who do not. We use MLS data from the Randstad area of the Netherlands for the period 2008–2013 for which we have detailed information regarding the listing strategies. We find that those homeowners who expect loss set higher initial list price by 10% on average than those homeowners who do not. Sellers with prospective loss upon initial listing are more likely and more aggressively to revise their list price downward than other sellers. Keywords: Housing; Loss; Property transaction; List price revision; STAR model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:43:y:2019:i:c:p:102-117 DOI: 10.1016/j.jhe.2018.09.006 Access Statistics for this article Journal of Housing Economics is currently edited by H. O. Pollakowski More articles in Journal of Housing Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.