The authors of the paper presented in this Virtual Real Estate Seminar model listing decisions in the housing market, and structurally estimate household preference and constraint parameters using comprehensive Danish data. Sellers optimize expected utility from property sales, subject to down-payment constraints, and internalize the effect of their choices on final sale prices and time-on-the-market. The data exhibit variation in the listing price-gains relationship with "demand concavity;" bunching in the sales distribution; and a rising listing propensity with gains. A new fact is that gains and down-payment constraints have interactive effects on listing prices. They find reference-dependence around the nominal purchase price and modest loss-aversion, but our canonical model cannot fully explain the new facts.
The aim of this seminar series is to bring together people from academia and industry interested in the latest real estate research. In this series of bi-weekly presentations, we invite papers from scholars
who would like to present their ongoing work. Presentations will be 25 minutes long, followed by 25 minutes for the Q&A session. Junior researchers, students, and practitioners are very welcome to take part.