Papers by Suntree Thippayasanti
Real Estate can be considered one of several important industries whose performance can indicate ... more Real Estate can be considered one of several important industries whose performance can indicate the performance of the economy as a whole. This paper addresses and discusses issues regarding methods of real estate transactions. There are four main questions, which are all left open-ended. Firstly, it is pointed out that according to empirical interviews, there is no evidence of multiple agencies resulting in quicker sale as compared to sole agencies. Secondly, it seems to be that the current agency contract is inefficient in term of risk sharing. Consequently, a new type of agency contract is proposed and some possible reasons why this new contract has not been adopted are discussed. Thirdly, with regard to real estate auctions, it is concluded that the use of sellers’ secret reserve prices to deter collusion or as a mean of signaling information is not plausible. However, it is argued that reserve prices are kept secret so that sellers remain passive, which is revenue enhancing. Lastly, in the comparison between selling through real estate auctions and through agencies, the only concrete point seems to be that auctions have a time certainty, which can be regarded as both advantageous and disadvantageous. Nevertheless, it cannot be concluded as to whether auctions or agencies yield more revenue for sellers.
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Papers by Suntree Thippayasanti