Auction versus Negotiated Sale: Evidence from Real Estate Sales

Chow, YL; Hafalir, IE; Yavas, A

Auction versus Negotiated Sale: Evidence from Real Estate Sales

Chow, YL Hafalir, IE

Yavas, A

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Publication Type:: Journal Article
Citation:: Real Estate Economics, 2015, 43 (2), pp. 432 - 470
Issue Date:: 2015-06-01

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Field	Value	Language
dc.contributor.author	Chow, YL	en_US
dc.contributor.author	Hafalir, IE https://orcid.org/0000-0002-6731-2848	en_US
dc.contributor.author	Yavas, A	en_US
dc.date.issued	2015-06-01	en_US
dc.identifier.citation	Real Estate Economics, 2015, 43 (2), pp. 432 - 470	en_US
dc.identifier.issn	1080-8620	en_US
dc.identifier.uri	http://hdl.handle.net/10453/119363
dc.description.abstract	© 2015 American Real Estate and Urban Economics Association. We offer a theoretical and empirical comparison of auctions and negotiated sales. We first build a simple model to show that auctions generate a higher relative price than negotiated sales when demand for the asset is strong, when the asset is more homogeneous and when the asset attracts buyers with higher valuations. Using data from property sales in Singapore, we find support for our theoretical predictions. In addition, we find that auctions do not necessarily generate a higher price premium for foreclosed properties than for nonforeclosed properties.	en_US
dc.relation.ispartof	Real Estate Economics	en_US
dc.relation.isbasedon	10.1111/1540-6229.12056	en_US
dc.subject.classification	Finance	en_US
dc.title	Auction versus Negotiated Sale: Evidence from Real Estate Sales	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.citation.volume	43	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1205 Urban and Regional Planning	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Economics Discipline
utslib.copyright.status	closed_access
pubs.issue	2	en_US
pubs.publication-status	Published	en_US
pubs.volume	43	en_US

Abstract:

© 2015 American Real Estate and Urban Economics Association. We offer a theoretical and empirical comparison of auctions and negotiated sales. We first build a simple model to show that auctions generate a higher relative price than negotiated sales when demand for the asset is strong, when the asset is more homogeneous and when the asset attracts buyers with higher valuations. Using data from property sales in Singapore, we find support for our theoretical predictions. In addition, we find that auctions do not necessarily generate a higher price premium for foreclosed properties than for nonforeclosed properties.

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http://hdl.handle.net/10453/119363