Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/265982 
Erscheinungsjahr: 
2022
Schriftenreihe/Nr.: 
CESifo Working Paper No. 9947
Verlag: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Zusammenfassung: 
Real estate contracts often contain a wide variety of contingency clauses. These third-party approvals are often outside the seller's control and can lengthen the-time-on-the-market (TOM) and reduce the surety of close. To compensate for these undesirable attributes, buyers typically offer higher purchase prices. This study examines the factors affecting contract contingencies and the effect of contract contingencies on TOM and selling price. Using transactions from Miami-Dade County in south Florida, we find that the presence of contingency clauses is significantly related to market conditions, TOM, list price premiums, distressed transactions, brokerage characteristics, home occupancy status, size, and age. Contingency clauses have differential effects on price premia that range from -3.7% to +2.2%. However, when considering TOM, contingency clauses have significant price premia ranging from -3.3% to +2.4%.
Schlagwörter: 
contingency clauses
price premia
real estate contracts
time-on-the-market
selling price
JEL: 
R30
R31
L85
Dokumentart: 
Working Paper
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