Wu, Yanting (2017) The Effectiveness of Listing Strategies in the Housing Market. Masters thesis, Concordia University.
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Abstract
Abstract
This thesis examines the impact of asking price on the final sale price based on a unique dataset of more than 30,000 transactions of single-family houses in Montreal from 2011 to 2016. We construct different proxies for reference points, including predicted selling price, regional average (and median) asking price, regional average (and median) selling price, and assessment value, used by sellers in setting their asking prices. We explore the effectiveness of high-price strategy and low-price strategy based on these reference points. We find that higher asking prices are associated with higher selling pricing, suggesting buyers anchor to the asking price. Our results support the high-price strategy and reject the low-price strategy in both cold and hot markets, even controlling for unobserved quality. In addition, the anchor effect of the asking price on the final sale price does not differ between the two markets.
| Divisions: | Concordia University > John Molson School of Business > Finance |
|---|---|
| Item Type: | Thesis (Masters) |
| Authors: | Wu, Yanting |
| Institution: | Concordia University |
| Degree Name: | M. Sc. |
| Program: | Administration (Finance option) |
| Date: | August 2017 |
| Thesis Supervisor(s): | Zhou, Tingyu |
| Keywords: | Listing Strategies Housing Market Anchoring Effect |
| ID Code: | 982769 |
| Deposited By: | YANTING WU |
| Deposited On: | 17 Nov 2017 15:58 |
| Last Modified: | 18 Jan 2018 17:55 |
References:
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