The effect of listing price strategy on transaction selling prices

E Beracha, MJ Seiler - The Journal of Real Estate Finance and Economics, 2014 - Springer
Abstract While true underlying home values are expected to be randomly distributed, actual
residential listing prices tend to be highly clustered. Particularly, more than 75% of the
homes in our sample are associated with a round or “just below” round asking price. This
study provides a theoretical and empirical examination of how the thousands digit in a
home's asking price is related to the final transaction price relative to its true underlying ...