Information Producers and Valuation: Evidence from Real Estate Markets

24 Pages Posted: 1 Dec 2010 Last revised: 9 Dec 2010

See all articles by David H. Downs

David H. Downs

Virginia Commonwealth University (VCU) - Department of Finance, Insurance & Real Estate; The Kornblau Institute

Nuray Guner

Middle East Technical University - Department of Business Administration

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Date Written: November 15, 2010

Abstract

This paper examines valuation and its relation to information production by licensed appraisers across real estate markets. The testable implications are discussed for either a peer monitoring or a crowding out effect in the data. The empirical model is estimated with data for all 50 US states and DC covering the sample period from 1999 to 2008. While analysis is primarily cross-sectional and not causal, the evidence is consistent with theory stating that the minimum quality associated with residential licensure standards may be too low. In contrast, the evidence suggests certified residential standards afford information producers the opportunity to signal or information consumers the ability to screen based on quality.

Keywords: Information, Markets, Real Estate, Valuation

JEL Classification: G10, G14, R33

Suggested Citation

Downs, David H. and Guner, Nuray, Information Producers and Valuation: Evidence from Real Estate Markets (November 15, 2010). 46th Annual AREUEA Conference Paper, Available at SSRN: https://ssrn.com/abstract=1716984 or http://dx.doi.org/10.2139/ssrn.1716984

David H. Downs (Contact Author)

Virginia Commonwealth University (VCU) - Department of Finance, Insurance & Real Estate ( email )

Richmond, VA 23284-4000
United States

The Kornblau Institute ( email )

Richmond, VA 23284-4000
United States

Nuray Guner

Middle East Technical University - Department of Business Administration ( email )

Ankara, 06531
Turkey
(90)(312) 210 3075 (Phone)
(90)(312) 210 1243 (Fax)

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