Pricing, Exposure and Residential Listing Strategies

John Benjamin and Peter Chinloy

Journal of Real Estate Research, 2000, vol. 20, issue 1-2, 61-74

Abstract: Sellers of houses signal their motivation or willingness to sell through price and contractual provisions in their listing agreements. A pricing strategy is for motivated sellers to set their listing prices at or below estimated market values as determined by the quality and other characteristics of the house. An exposure strategy is to set a listing price above estimated market value, and increase advertising and broker activity in order to generate more favorable offers. Pricing and exposure are competing strategies and may be revealed in listing contracts through the inclusion of a buyer-broker provision.Empirical results for the Washington, D.C. area indicate that brokers concentrate their time on sellers following the pricing strategy as opposed to those who follow the exposure strategy. There is a tradeoff between price and exposure. The results demonstrate a positive relationship between increasing listing price and using buyer brokerage.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2000.12091026 (text/html)
Access to full text is restricted to subscribers.

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:taf:rjerxx:v:20:y:2000:i:1-2:p:61-74

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjer20

DOI: 10.1080/10835547.2000.12091026

Access Statistics for this article

Journal of Real Estate Research is currently edited by William Hardin and Michael Seiler

More articles in Journal of Real Estate Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().