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Creative Financing, House Prices, and Property Tax Inequities

Author

Listed:
  • G. Stacy Sirmans

    (Clemson University, South Carolina)

  • C.F. Sirmans

    (Louisiana Chair of Real Estate, Louisiana State University, Baton Rouge)

  • Stanley D. Smith

    (University of Arkansas, Fayetteville)

Abstract

This paper examines the distortions in house prices caused by the use of creative financing and the horizontal and vertical inequities in property tax assessments that can result if the proper adjustment of prices for financing is not made. The results show that horizontal inequities exist across financing alternatives (i.e., between conventional and assumption financing). The results also indicate vertical inequities in house prices since the amount of capitalization of financing differs across price levels.

Suggested Citation

  • G. Stacy Sirmans & C.F. Sirmans & Stanley D. Smith, 1987. "Creative Financing, House Prices, and Property Tax Inequities," Urban Studies, Urban Studies Journal Limited, vol. 24(5), pages 409-415, October.
    • Handle: RePEc:sae:urbstu:v:24:y:1987:i:5:p:409-415
    DOI: 10.1080/00420988720080621
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    References listed on IDEAS

    as
    1. Vinod B. Agarwal & Richard A. Philips, 1985. "The Effects of Assumption Financing Across Housing Price Categories," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(1), pages 48-57, March.
    2. Stanley D. Smith & G. Stacy Sirmans, 1984. "The Shifting of FHA Discount Points: Actual Vs. Expectations," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 12(2), pages 153-161, June.
    Full references (including those not matched with items on IDEAS)

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