Evaluating Different Housing Prices: Marketing and Financial Distortions

Josep Maria Raya ()
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Josep Maria Raya: Tecnocampus, Universitat Pompeu Fabra

International Real Estate Review, 2021, vol. 24, issue 4, 549-576

Abstract: The aim of this paper is to evaluate the importance of housing price. We compare the evolution of three different types of housing prices (list, sale and appraisal prices). The objective is to see the marketing and financial consequences of using each type of housing price. To do this, a dataset of a real estate company and its financial intermediary with all of these types of housing prices is used. We estimate econometric models in which the dependent variables are: price (appraisal, selling or list), mark-up, loan to value and foreclosures. The results show evidence of the consequences of using a specific housing price in terms of inflation calculation, financial assets, and collateral valuation and mortgage default, among others.

Keywords: housing prices; appraisal prices; selling prices; markup; default; left-digit bias; inflation; overappraisal; evaluation. (search for similar items in EconPapers)
JEL-codes: R21 R31 (search for similar items in EconPapers)
Date: 2021
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