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The economic role of valuers in real property markets
[working paper]
Corporate Editor
Helmholtz-Zentrum für Umweltforschung - UFZ
Abstract Globally, real estate trade is highly regularized. Usually, the market value is not negotiated simply between the seller and potential buyer but based on an assessment performed by a professional valuer, known as a surveyor or appraiser. This paper inquires about the economic role of valuers in real... view more
Globally, real estate trade is highly regularized. Usually, the market value is not negotiated simply between the seller and potential buyer but based on an assessment performed by a professional valuer, known as a surveyor or appraiser. This paper inquires about the economic role of valuers in real estate markets. An institutionally embedded framework for valuation intermediation is developed that elucidates a multi-tiered imperfect information cascade. First, the valuer is understood as middleman counteracting information uncertainties on product quality of real estate. An additional constraint is constituted by information asymmetries between valuer and contractor. Drawing on New Institutional Economics, we discuss how the valuation professional with regularizations evolves globally as the superior institutional response to this cascade of information imperfections. A case of empirical evidence is provided for this concept of the regularized valuer.... view less
Keywords
real estate; market; evaluation; information capture; information economics; right of ownership; economic value; transaction costs; principal-agent-theory; expert; land use; accumulated toxic waste; risk assessment; land value; Brandenburg; Federal Republic of Germany
Classification
Economic Sectors
Free Keywords
asymmetric information; information and product quality; real estate services
Document language
English
Publication Year
2015
City
Leipzig
Page/Pages
42 p.
Series
UFZ Discussion Papers, 13/2015
ISSN
1436-140X
Status
Published Version; reviewed
Licence
Creative Commons - Attribution-NonCommercial-ShareAlike