The Effect of Seller Ownership and Financing Choices on the Selling Price of Foreclosed Homes

Numerous studies have examined the effect of foreclosures on the selling prices of residential properties, but few have considered whether ownership and financing terms affect selling prices. The findings indicate that investor-resale properties sell at a significant premium relative to comparable p...

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Bibliographic Details
Published in:Journal of housing research 2017-01, Vol.26 (2), p.179-194
Main Authors: Gordon, Bruce L., Winkler, Daniel T.
Format: Article
Language:English
Subjects:
Commercial banks
Commercial credit
Discounts
Economics
Efficient markets
Financial institutions
Financing
Foreclosure
Government agencies
Home loans
Housing
Inventory
Mortgage companies
Ownership
Prices
Profits
Real estate financing
Resale
Residential buildings
Sales
Short sales
Underwriting
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Summary:Numerous studies have examined the effect of foreclosures on the selling prices of residential properties, but few have considered whether ownership and financing terms affect selling prices. The findings indicate that investor-resale properties sell at a significant premium relative to comparable properties sold by commercial banks, while GSE-owned properties sell at a slight premium. Also, cash buyers are able to negotiate lower prices from sellers.
ISSN:1052-7001
2691-1337
DOI:10.1080/10835547.2017.12092134