Comparative Analysis of the Importance of Determining Factors in the Choice and Sale of Apartments

Eulália Santos, Fernando Tavares, Vasco Tavares and Vanessa Ratten
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Eulália Santos: Escola Superior de Tecnologia e Gestão do Instituto Politécnico de Leiria, Campus 2, Morro do Lena, Alto do Vieiro, Apartado 4163, 2411-901 Leiria, Portugal
Fernando Tavares: ISCET—Instituto Superior de Ciências Empresariais e do Turismo, Rua de Cedofeita 285, 4050-180 Porto, Portugal
Vasco Tavares: Departamento de Matemática, Faculdade de Ciências da Universidade do Porto, Rua do Campo Alegre 687, 4169-007 Porto, Portugal
Vanessa Ratten: Department of Entrepreneurship, Innovation and Marketing, La Trobe University, Melbourne 3083, Australia

Sustainability, 2021, vol. 13, issue 16, 1-12

Abstract: The motivation to compare the importance that buyers and sellers give to the diverse characteristics of apartments is its pertinency to grasping the housing market. The objective of this article is to compare the determining factors in the choice and sale of apartments among the potential buyers and sellers. During a sale, the realtors exhibit the dwellings’ positive characteristics, the so-called amenities. The homebuyers must analyse the deal in a rational and well-weighed way, striving to know its characteristics to reduce the information asymmetry. The study focuses on two distinct samples, with the common goal of transacting housing. One of the samples is composed of individuals who are looking for apartments, and the other one of individuals who are selling apartments, both being collected in mainland Portugal. It was verified that there are statistically significant differences between buyers and sellers. Buyers give more importance to certain rooms and the inexistence of negative externalities near their future residence. Sellers emphasise positive externalities and parking spots. This study is expected to contribute to the increase in scientific knowledge on the housing market and to the decrease of the information asymmetry between sellers and buyers. Knowing the importance that buyers and sellers give to the main different factors in the Portuguese real estate market constitutes an advancement of knowledge in this area.

Keywords: real estate market; information asymmetry; housing search; market information; real estate externalities (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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