Under What Circumstances do First-time Homebuyers Overpay? — An Empirical Analysis Using Mortgage and Appraisal Data

Jessica Shui and Shriya Murthy

Journal of Real Estate Research, 2019, vol. 41, issue 1, 107-146

Abstract: We study whether first-time homebuyers overpay for their homes and whether the magnitude of the overpayment varies with the diligence of appraisers involved. We present a robust result that first-time homebuyers sort into smaller and cheaper houses, but that once observed and unobserved house characteristics are controlled for, they pay a premium compared to their more experienced counterparts. Our analysis additionally suggests that certain appraisals and appraisers might be able to mitigate this overpayment by inducing downward renegotiation. This research is among the first to contribute both theoretically and empirically to the literature on first-time homebuyers' sales transactions.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2019.12091518 (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:41:y:2019:i:1:p:107-146

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

DOI: 10.1080/10835547.2019.12091518

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 ().