HOUSING MARKET DISCOUNT RATES: EVIDENCE FROM BARGAINING AND BIDDING WARS

• 成果类型: Article
• 署名作者: Koster, Hans R. A.; Rouwendal, Jan
• 署名单位: Vrije Universiteit Amsterdam; Vrije Universiteit Amsterdam
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12679
• 发表日期: 2024
• 页码: 955-1002
• 关键词: on-the-market; loss aversion; real-estate; equity constraints; tax capitalization; seller behavior; listing price; selling price; search model; time

摘要

When selling a home, through the choice of the list price, sellers make a trade-off between achieving a quick sale at a low price or waiting for higher bids. This list-price setting decision is governed by a discount rate. Using data on housing sales in the Netherlands, we derive gross discount rates under bilateral bargaining and bidding wars. The estimated discount rates are 25%-35%, which are considerably higher than long-run housing market discount rates and may result from the seller's unfamiliarity with the selling process. The rates are higher for sellers that already moved and have a low education.