The Effect of Time-on-Market and Location on Search Costs and Anchoring: The Case of Single-Family Properties

Posted: 26 Mar 2007

See all articles by Terrance M. Clauretie

Terrance M. Clauretie

University of Nevada, Las Vegas - College of Business - Department of Economics

Paul D. Thistle

University of Nevada, Las Vegas - Department of Finance

Abstract

Regarding single-family residential properties purchased for investment (non-owner occupied) we examine whether out-of-state buyers pay more than in-state buyers. We focus on the effects of search costs and anchoring. We use data on 2,828 Las Vegas non-owner occupied (investor) residences, 40 percent of which are purchased by non-local investors. We find that the location of the property affects the empirical results. Specifically, search cost and anchoring effects that appear significant when the location of the property is ignored disappear when location is introduced as an independent variable.

Keywords: search costs, anchoring, time-on-market

Suggested Citation

Clauretie, Terrance M. and Thistle, Paul D., The Effect of Time-on-Market and Location on Search Costs and Anchoring: The Case of Single-Family Properties. Journal of Real Estate Finance and Economics, Vol. 35, No. 2, 2007, Available at SSRN: https://ssrn.com/abstract=975091

Terrance M. Clauretie (Contact Author)

University of Nevada, Las Vegas - College of Business - Department of Economics ( email )

4505 S. Maryland Parkway
Las Vegas, NV 89154
United States

Paul D. Thistle

University of Nevada, Las Vegas - Department of Finance ( email )

4505 S. Maryland Parkway
Las Vegas, NV 89154
United States
702-895-3856 (Phone)
702-895-4650 (Fax)

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