The Impact of Property Condition Disclosure Laws on Housing Prices: Evidence from an Event Study Using Propensity Scores

Nanda, Anupam; Ross, Stephen L.

doi:10.1007/s11146-009-9206-y

Cited by 41 publications

(25 citation statements)

References 33 publications

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“…Since California enacted the residential real estate property disclosure law, empirical studies have tested and shown the importance of information to the decision making of housing consumers. These studies have revealed how property transaction prices and the market are affected after the disclosure of information on past housing transactions (Eerola & Lyytikäinen 2015;Zhang et al 2015), structural housing characteristics (Lützkendorf & Speer 2005;Nanda & Ross 2012), neighbourhood housing characteristics (Fiva & Kirkebøen, 2011;Kurlat & Stroebel, 2015) and environmental dis-amenity (Votsis & Perrels 2016;Walsh & Mui 2017;and Pope 2008a). Our study justifies the information disclosure laws from a different aspect.…”

Section: Introductionsupporting

confidence: 61%

“Smarter information, smarter consumers”? Insights into the housing market

Gong

Lizieri

Bao

2019

Journal of Business Research

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Section: Introductionsupporting

confidence: 61%

“Smarter information, smarter consumers”? Insights into the housing market

Gong

Lizieri

Bao

2019

Journal of Business Research

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“…The law should provide the vendor's duty to inform the prospective buyer about known defects. Failure of which would provide redress to buyers once they have taken possession of the property and can obtain private information concerning product quality (Fishman & Hagerty, 2003;Nanda & Ross, 2008). Apart from the physical conditions of the property, this paper submits that non-physical aspect of the house as expounded by Aulia and Ismail (2016) should also be disclosed by the vendor.…”

Section: Vendor Disclosure Law: Potentials and Problemsmentioning

confidence: 98%

In Search of Home Sweet Home: Between theory and reality

Abdullah

Ramly

Ikhsan³

2017

E-BPJ

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Houses bought through sub-sale contract are of varying quality. The -caveat emptor‖ doctrine compels the purchaser to make a thorough investigation in a sub-sale house purchase. The -as is‖ clause posits that the house is sold based on its existing conditions. This paper analyses the application of the -caveat emptor‖ and -as is‖ clause in Malaysia and highlights the framework of information disclosure on property conditions in Malaysia, in comparison with the vendor disclosure laws in the United States and Australia. This paper suggests that a pre-purchase checklist should be provided in a sale and purchase transaction.

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“…To improve the asymmetric information of buyers, some countries and local government have regulated to disclose some key items of real estates. The approval of disclosure acts reduces information asymmetry, on the contrary, increases the real estate prices (Nanda and Ross 2012). But, ISSN 1923-4023 E-ISSN 1923 disclosure of seriously negative spillover effects reduces these real estate prices significantly (Pope 2008).…”

Section: Financial Economics and Home Biasmentioning

confidence: 99%

Home Bias and the Real Estate Prices

Chang¹

2017

IJFR

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This paper argues that the Home Bias phenomenon prevails in the real estate market, which is inferred from psychology, economic, and financial literature. Utilizing the trait of the Home bias behavior, which can reduce the risk of information asymmetry, I modify the classical pure trading model and employ the parameter of relative risk aversion as the proxy variable of Home Bias to translate the relationship among Home Bias phenomenon, the property prices, and the expected returns.The comparative static analyses indicate that Home Bias behavior is negatively related to the property prices and positively related to the property returns. The marginal effects on property prices are heightened in situations of high time preference and relative low Home Bias. Conversely, the marginal effects on property returns are larger if the time preference parameter is smaller. As a household buyer with high time preference is located far away from a property, his bargaining power is easily affected by home bias behavior. Further, this paper focuses on the home bias elasticity of property prices and returns for the sake of unit-free property. Inelastic coefficients of elasticity of prices and returns indicate that the capability of households to lower property overvalued prices (i.e. increase investment returns) from reducing information asymmetry by using Home Bias behavior is still limited.

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The Impact of Property Condition Disclosure Laws on Housing Prices: Evidence from an Event Study Using Propensity Scores

Cited by 41 publications

References 33 publications

“Smarter information, smarter consumers”? Insights into the housing market

“Smarter information, smarter consumers”? Insights into the housing market

In Search of Home Sweet Home: Between theory and reality

Home Bias and the Real Estate Prices

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