Brokers’ list price setting in an auction context

Purpose The role of list price is often discussed in a narrative describing sellers’ preferences or sellers’ price expectations. This paper aims to investigate a set of list price strategies that real estate brokers have available to influence the outcome of the sale, which may be many times self-serving. Design/methodology/approach By analyzing real estate brokers’ arguments on the choice of the list price level, a couple of hypotheses are formulated with regard to different expected outcomes that depend on the list price. This study empirically tests two hypotheses for the underlying incentives in the choice of list price from the real estate broker’s perspective: lower list price compared to market value leads to the higher sales price, lower list price compared to market value leads to a quicker sale. To investigate the two hypotheses, this paper adopts different methodological frameworks: H1 is tested by running a classical hedonic model, while H2 is tested through a duration model. This study further tests the hypotheses by splitting the full sample into two different price segments: above and below the median list price. Findings The results show that H1 is rejected for the full sample and for the two sub-samples. That is, contrary to the common narrative among brokers that underpricing leads to a higher sales price, underpricing lower sales price. H2, however, receives support for the full sample and for the two sub-samples. The latter result points to that brokers may be tempted to recommend a list price significantly below the expected selling price to minimize their effort while showing a high turnover of apartments. Originality/value Although there are a large number of previous studies analyzing list price strategies in the housing market, this paper is one of the few empirical studies that address the effect of list price choice level on auction outcomes of non-distressed housing sales.

Dual Agency, Commission Levels, and the Effect on Sale Price in Residential Real Estate Market: A Questionnaire Survey on Real Estate Brokers in Japan

In residential real estate market, agents have an incentive to steer their clients to their own listings or buyers rather than offering the best value transaction, which is derived from allowing dual agency and information asymmetry among buyers, sellers, and agents. We estimated the commission levels and sale prices of real estate brokers through a questionnaire survey and found that seven out of ten brokers are closing dual-agency deals and lowering sale prices. We could not find any effects of the number of employees, location of office, and major types of contract on dual agency.

An Evaluation Model for Property-Purchasing Plans Based on a Hybrid Multi-Criteria Decision-Making Model

Purchasing a property entails making rankings, comparisons, and trade-offs among various housing characteristics. When trying to sell a house, real estate brokers take on an important role as a middle-person between the seller and buyer. Thus, this research sets up a dynamic price recommendation method for housing purchases and applies the fuzzy multiple criteria decision making (FMCDM) technique, so as to realize housing quality and evaluation. We utilize this method based on the prospect theory of the loss aversion effect, in order to aid real estate brokers’ job of coordinating between the seller and buyer. The method helps us to provide an objective view of the evaluation matrix. From the pricing strategy, the results are able to match price versus quality and improve brokers’ intermediation effects. The brokers can subsequently make recommendations regarding a suitable price, decisions on negotiation strategies to reach an agreement, and settle upon an acceptable price.

Survey on Reuse of Sewage in Agriculture

Agriculture, the backbone of Indian economy, contributes to the overall economic growth of the country and determines the standard of life for more than 50% of the Indian population but now the situation is changing. For money the farmers are selling the lands to the real estate brokers, in this situation we cannot blame farmers because for their survival it has been done. No water for doing agriculture, so to avoid such situations alter for rain water should be found. Sewage water can be recycled and it is rich in nitrogen it can be alter for rain water in the field of agriculture. First sewage water can be collected and then recycling process can done and with proper pipelining it can be linked either with the dam or other ways.

Survey on Reuse of Sewage in Agriculture

Agriculture, the backbone of Indian economy, contributes to the overall economic growth of the country and determines the standard of life for more than 50% of the Indian population but now the situation is changing. For money the farmers are selling the lands to the real estate brokers, in this situation we cannot blame farmers because for their survival it has been done. No water for doing agriculture, so to avoid such situations alter for rain water should be found. Sewage water can be recycled and it is rich in nitrogen it can be alter for rain water in the field of agriculture. First sewage water can be collected and then recycling process can done and with proper pipelining it can be linked either with the dam or other ways.