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The Impact of Corporate Ownership on Residential Transaction Prices

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Abstract

A perception exists in the appraisal and brokerage industry that houses sold by corporate relocation firms (or corporate employers) sell at a discount in the residential market. The purpose of this article is to empirically determine if corporately owned houses do sell at a discount. A sample of 278 residential transactions in one community is used in a hedonic pricing model to test the hypothesis. The results indicate that corporate properties sold at a discount of nearly 5%.

Suggested Citation

  • Mark G. Dotzour & Donald R. Levi, 1992. "The Impact of Corporate Ownership on Residential Transaction Prices," Journal of Real Estate Research, American Real Estate Society, vol. 7(2), pages 207-216.
    • Handle: RePEc:jre:issued:v:7:n:2:1992:p:207-216
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    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol07n02/v07p207.pdf
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    1. Radcliffe G. Edmonds, 1984. "A Theoretical Basis for Hedonic Regression: A Research Primer," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 12(1), pages 72-85, March.
    2. Mark G. Dotzour & Donald R. Levi, 1989. "Reducing the Cost of Corporate Employee Relocation," Journal of Real Estate Research, American Real Estate Society, vol. 4(3), pages 157-168.
    3. Mark G. Dotzour, 1988. "Quantifying Estimation Bias in Residential Appraisal," Journal of Real Estate Research, American Real Estate Society, vol. 3(3), pages 1-11.
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    Cited by:

    1. Marcus T. Allen & Ronald C. Rutherford & Thomas M. Springer, 1997. "Reexamining the Impact of Employee Relocation Assistance on Housing Prices," Journal of Real Estate Research, American Real Estate Society, vol. 13(1), pages 67-76.
    2. Justin Benefield & Christopher Cain & Ken Johnson, 2011. "On the Relationship Between Property Price, Time-on-Market, and Photo Depictions in a Multiple Listing Service," The Journal of Real Estate Finance and Economics, Springer, vol. 43(3), pages 401-422, October.
    3. Baumann, Kilian, 2022. "Der Einfluss von Anbieterstrukturen auf Mietwohnungspreise: Theoretische Überlegungen und empirischer Ansatz," Arbeitspapiere 193, University of Münster, Institute for Cooperatives.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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