The state-of-the-art with respect to pricing real estate is similar to that with respect to pricing securities just prior to the development of the CAPM. Reading the entrails of real estate markets, however, has proven a formidable task, and the problem is not limited to inadequate data. Perhaps...

It is demonstrated that the inflation rate must be reflected in the anticipated benefit flows used in investment value models. When flows are left unadjusted, a biased value estimate results. It is also shown that the actual effects of the inflation rate on investment value will depend on the...

Several factors considered significant in determining the level of construction lending risk were tested for association with samples of troubled and good residential construction loans. Generally, a priori expectations were confirmed. The strongest associations with risk were found for...

Standard value models for investment real property do not distinguish between current income and future growth in estimating the probable level of debt financing. Analysis of loan commitment data from 1971-1981 suggests that this was not a proper assumption during that period. Consistent with...

A comparison of house prices brought by English auctions and private negotiations produced evidence that the pricing mechanism matters. In an active market for middle- to high-priced houses, auctions extracted higher prices than private negotiations. Copyright American Real Estate and Urban...

This article examines the pricing of rental contracts for two types of renter households: those who are able to amass a large, up-front security deposit and those with little, or no, security to offer. Empirical tests are presented to suggest that, in dealing with renter households who have...