Information Producers and Valuation: Evidence from Real Estate Markets

Posted: 26 Jan 2012 Last revised: 7 Mar 2012

See all articles by David H. Downs

David H. Downs

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

Z. Nuray Guner

Middle East Technical University (METU)

Multiple version iconThere are 2 versions of this paper

Date Written: January 24, 2012

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, Z. Nuray, Information Producers and Valuation: Evidence from Real Estate Markets (January 24, 2012). Journal of Real Estate Finance and Economics, Vol. 44, Nos. 1/2, 2012, Available at SSRN: https://ssrn.com/abstract=1991293

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

Z. Nuray Guner

Middle East Technical University (METU) ( email )

Ankara, 06531
Turkey

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