Real Estate Internet Listings Increase Time On Market, Sales Price According To Smeal Professor
For-sale homes marketed on the Internet and via the Multiple Listing Service (MLS) approach take longer to sell while earning marginally higher prices than houses not on the Internet according to the first research on the subject co-authored by Abdullah Yavas, Elliott Professor of Real Estate at Penn State�s Smeal College of Business.
Real Estate Internet Listings Increase Time On Market, Sales Price According To Smeal Professor
UNIVERSITY PARK, PA (September 09, 2004)—For-sale homes marketed on the Internet and via the Multiple Listing Service (MLS) approach take longer to sell while earning marginally higher prices than houses not on the Internet according to the first research on the subject co-authored by Abdullah Yavas, Elliott Professor of Real Estate at Penn State�s Smeal College of Business.
Forthcoming in the Journal of Housing Economics, the paper titled �The Effects of the Internet on Marketing Residential Real Estate� found that the sales prices of homes listed on the Internet is 1.33 percent higher than sales prices of houses not listed on the Internet, and homes listed on the Web take about 7 percent longer to sell.
�The additional exposure appears to allow the seller to receive the optimal price, but he has to wait a little longer to do so,� writes James Scott Ford and Ronald C. Rutherford of the University of Texas at San Antonio, along with Yavas. �Given this result, it would seem that most sellers would prefer that their houses be listed on the Internet.�
To reach their conclusions, the authors analyzed data drawn from a sample of 47,792 residential single family sales occurring in the Dallas/Fort Worth Metroplex across an entire year.
About the Co-AuthorWith expertise financial contracting, agency problems, the economics of uncertainty, and experimental economics, Yavas is also research director of Smeal�s Institute for Real Estate Studies. He is an editorial board member of a variety of publications including the Journal of Real Estate Finance and Economics, Journal of Housing Economics, and Journal of Real Estate Research. He is also currently serving as an advisor to Turkey's Secretary of Treasury as that government works to become one of the first developing nations in the world to establish a mortgage system.
REPORTERS & EDITORS: For more information, please contact Wyatt DuBois in the Smeal College of Business Media Relations Office at 814-863-3798 or wed112@psu.edu.
Penn State's Smeal College of Business offers highly ranked undergraduate, MBA, executive MBA, Ph.D., and executive education opportunities to more than 5,500 students at all levels. Featuring academic departments of accounting, finance, marketing, insurance and real estate, management, and supply chain and information systems, the college is also home to major research centers such as the Center for Supply Chain Research, the Institute for the Study of Business Markets, the Center for Digital Transformation, the Farrell Center for Corporate Innovation and Entrepreneurship, the Center for Global Business Studies, and the Center for the Management of Technological and Organizational Change.
