We investigate whether customers' overall impression of online property listings can be influenced by the real estate agent, and whether this influence depends on the customer's demographic characteristics. A sample of 1,594 potential homebuyers took an online audio/visual tour of a typically priced home in their area. Subjects were shown one of eight conditions in which we varied agent gender (male/female), agent attractiveness (attractive/less attractive), and pathos (used/not used). The results show that segments of customers are drawn to different real estate agents, but contrary to our expectations, customers were not necessarily drawn to similar agents or more attractive ones.

This study is the first to examine the widely debated merits of staging a home for sale. We find that both homeowners and real estate agents believe staging conditions (furnishings and wall color) will significantly impact homeowners’ willingness to pay for a property. Our results show that homeowners rationally do not significantly differ in their valuations based on staging conditions. However, staging conditions do influence the process, as we find a neutral wall color and good furnishings do significantly influence a buyer’s perceived livability and overall opinion of the home. While these are a necessary condition for purchase, staging is not enough to result in a higher selling price.

Real estate expertise in its nature may be divided grounded on the different approaches that are clearly describing the substance of it. The first option of diversification is based on the nature of subject of real estate. According the different definitions of real estate is possible to draw done two independent parallels: i) the land and ii) the essential part of it; important is that the both parts of real estate are at the same time as a part of nature and environment and also surrounded by environment as a generic term. As an environment structure hereby the classification into nature and artifact, with their large taxonomy, is also important. Similarly the subject taxonomies, the huge foundation of different legal acts, as overall, as specialized, is remarkable.Named diversification gives to us a scope to converge to expertise from the side of land and to expertise its parameters up till site class. On the other hand, basically the buildings, but also the forest and standing wood may be classified as an object of expertise. Come to rest of the three different procedures they are straight connected with the procedures of expertise, to the scene are paced three similar and at the same time different activities, the expertise of land, the expertise of standing wood and expertise of buildings. In spite of some differences between the sub-subjects of expertise, the necessity of standardization is evident. Standard solutions for and of expertise may be industry based, national and/or international; the last group must let enough space for the national variances.Hereby may arise a question: How to apply during the expertise’s the many featured legal space or the existing, just constructed standardized environment of expertise procedure? Generalizing the experience of last fifteen years is possible to underline a lack, an emergency need for generally applied expertise practice. Standpoint, according the generally applied practice built up connected with earlier named definitions, classifications or taxonomies, is an object of further discussion.

This study empirically confirms the existence of the status quo deviation aversion hypothesis, but not increasing status quo deviation aversion, in people who own their primary residence. The examination was conducted in the 20 Case-Shiller Metropolitan Statistical Areas across the country. The results are systemic and do not vary substantially by demographic characteristics. However, variations are noted with different levels of real estate knowledge, income, purchase motive, relative home tenure, and excess relative housing risk.

This study takes 1594 potential homebuyers on a Web-based audio/visual tour of a typically priced home in their area. Using a voice-altering software as well as before and after extreme makeover photos, we are able to isolate the effect of real estate agent characteristicsattractiveness, gender, and pathoson their ability to change the opinions of potential homebuyers. We find that attractive female agents who employ pathos are significantly able to alter the impression of the property in the minds of respondents. Furthermore, agents using pathos are not viewed as less trustworthy than agents not using pathos.

This study examines a number of behavioral finance issues as they relate to real estate investments. We find a statistically significant degree of mental accounting at all points throughout the disposition effect curve when holding a real estate investment in isolation versus holding the asset as part of a mixed-asset portfolio. We also identify four distinct disposition curve shapes beyond the traditional "S-shaped" curve, where investors are more willing to sell an asset that is in the gains domain. Furthermore, we conclude that an investor's willingness to sell jumps by the greatest amount when going from zero return into profitable territory. Finally, this false reference point does take into consideration transaction costs.

This study examines underwater primary resident homeowners to identify why some decide to strategically default while others do not. We find that realized shame and guilt are consistent with ex ante expectations. However, the financial backlash experienced by strategic defaulters is less than anticipated, causing strategic defaulters not to regret their actions. State‐specific bankruptcy exemption levels and real estate laws only marginally explain the decision to strategically default, partly because the decision to walk away from a mortgage is emotional, and partly because the implementation of these laws is uncertain and confusing to distressed borrowers. Rather, we find key strategic default drivers include the homeowner's expectation of future real estate price movements, frustration with the lender, moral evaluation of the decision to strategically default, loan knowledge, political ideology, gender, income and age.

This study examines both financial and behavioral explanations for the existence of a residential real estate shadow market for underwater investment properties. We find that the affordability constraint explains only 44.4% of the reasons not to list a property for sale. Three documented behavioral reasons primarily drive the remaining decisions. While various investor demographic characteristics are at times significant, no distinct profile emerged to identify those most likely to reside in this portion of the shadow market.

This study examines reviewer practices at 11 marketing journals. The results for the top three journals are compared to eight comparable journals that are typically considered to be non-top-tier journals. The results suggest that the reviewers and the review processes at the top journals differ significantly from those of the non-top-tier journals. One of the most important findings is the degree to which the double-blind review process is being employed. The results may provide aspiring authors with a greater understanding and empathy of the review process, which in turn may allow them to be more successful with their article submissions.

This paper reviews service quality research in the residential real estate brokerage industry. This article emphasizes the important role that leveraging service quality plays in differentiating a real estate firm from its competitors. The study focuses on the initial measurement model that was developed and refined in the marketing literature, the Nelson and Nelson (1995) adaptation to real estate (RESERV), and the most recent works to reconcile the current understanding of the role that service quality plays in the brokerage industry. This review concludes with suggested directions for future research.

The purpose of this study is to refine the real estate service quality scale, called RESERV, developed by Nelson and Nelson (1995). RESERV is examined for scale parsimony and for items measuring service expectations. This study is the first to simultaneously compare the three types of service quality items: perceptions of service quality, the gap between perceived service quality and service expectations, and the perceived service quality given expectations. It is found that the 7-dimension RESERV scale has slightly better predictive power but poorer parsimonious fit compared to the single dimension 'Professionalism.' Because of the length and complexity of the purchasing process in real estate, the version of the scale measuring only perceptions of service quality is better suited to real estate than versions that try to incorporate service expectations.

Using an extension of the prospect theory known as false reference points, this study examines the behavior of real estate investors after experiencing a loss. The results confirm our central hypothesis that when investors attempt to avoid the pain of regret by changing the lens through which they view losses, they become more likely to hold onto bad investments. This unwillingness to sell bad investments in the short run causes investors to be more likely to experience heightened levels of unavoidable regret in the long run. The results hold across demographic characteristics but are slightly more pronounced for men and international investors, specifically those from Asia.

Executive Summary. This study introduces a new publicly traded real estate security known as an Exchange Traded Fund (ETF) Real Estate Investment Trust (REIT) short share. In addition to examining the return, correlation, autocorrelation, partial-order autocorrelation, stationarity, and Granger Causality characteristics of this new investment vehicle, we demonstrate that REITs warrant inclusion in mixed asset portfolios to varying degrees regardless of which direction the investor feels the REIT market is headed.

(2009). The Role of Profit, Law, and Ethics in Residential Real Estate Investments. Journal of Real Estate Practice and Education: Vol. 12, No. 2, pp. 157-171.

This teaching case provides students with an opportunity to evaluate the series of cash flows associated with a residential real estate investment, while simultaneously probing unique aspects of legal and ethical issues confronting the potential investment. The case also introduces students to some key differences between buying real estate as an investment versus buying real estate as a primary residence. Specifically, buyers of a home are afforded the opportunity to opt out before closing in the event (1) there has been a “major change in the project” (HRS §514B-87) or (2) they no longer “qualify” for the purchase of the home. In this sense, the prospective purchasers effectively hold a call option on the property. One interesting departure from traditional financial option theory is that the buyers have a way – albeit both potentially unethical and fraudulent – to get their premium back if they decide not to invest. This potential benefit results from (1) a loose contract provision that may be upheld by common law on a case by case basis, or (2) through the willingness of the buyer and a lender to commit what the courts might interpret as fraud. All information employed in this case is based upon an actual land purchase decision, though some specifics have been altered slightly for both illustrative purposes and to retain the anonymity of various parties to the transaction.

This study examines service quality in the residential real estate brokerage industry following the significant changes in technology, licensing laws, and agency reform that have occurred in the last decade. Seven dimensions were statistically confirmed as relevant to measuring overall service quality. Tangibles, reliability, responsiveness, and empathy dimensions were statistically significant in the structural equation model. Also, there are significant positive relationships between overall service quality and both "using the firm again" and "recommending the firm to others." When compared to previous research, the findings suggest that the impact of various service quality dimensions has changed since the early 1990s.