EconPapers    
Economics at your fingertips  
 

Listing strategies and housing busts: Cutting loss or cutting list price?

Xiaolong Liu and Arno J. 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)
JEL-codes: D83 R21 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1051137718300731
Full text for ScienceDirect subscribers only

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:eee:jhouse:v:43:y:2019:i:c:p:102-117

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
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-05-11
Handle: RePEc:eee:jhouse:v:43:y:2019:i:c:p:102-117