Interests and Behaviours of Real Estate Market Actors in Commercial Property Valuation

This book provides a theory-led conceptual account of the Principal-Agent problem and related concepts of Behavioural Real Estate economics, using data from 52 qualitative interviews with appraisers, real estate brokers, and property owners to argue that the reality is more nuanced and influenced by the interests of different real estate market actors. It highlights the relationship dynamics between real estate investors and service providers in Austria and Central and Eastern Europe, creating an information asymmetry that may constitute the basis of conflicts of interest and Principal-Agent problems. The book also suggests that the services provided by appraisers and real estate brokers to investors may strongly influence the profit they can generate from a transaction, and that investors are guided by certain interests and undertake to steer the service providers in a favoured direction.

Format: Paperback / softback
Length: 138 pages
Publication date: 31 May 2023
Publisher: Taylor & Francis Ltd

This comprehensive book delves into the intricate realm of the Principal-Agent problem and its related concepts within Behavioural Real Estate economics, emerging a decade after the profound impact of the 2008 real estate crisis. Through the analysis of data derived from 52 qualitative interviews conducted with appraisers, real estate brokers, and property owners, the author presents a nuanced perspective that challenges the prevailing narrative. The book sheds light on the complex dynamics between real estate investors and service providers in the markets of Austria and Central and Eastern Europe.

While investors manage diverse real estate portfolios and navigate through specific legal systems, regulations, and norms, they frequently rely on service providers who possess a deep understanding of the local context. This work aims to emphasize that this relationship between real estate market actors fosters an information asymmetry, which can give rise to conflicts of interest and Principal-Agent problems. Furthermore, the book underscores the significant influence that appraisers and real estate brokers can have on the profits investors can realize from transactions. It suggests that investors may exhibit a preference for certain outcomes from service providers over others.

Through rigorous research, this study has unveiled that investors are guided by specific interests and actively strive to steer service providers in their desired direction. This book serves as a vital resource for anyone seeking to delve deeper into the intricacies of Behavioural Economics and the realm of real estate. It offers valuable insights and perspectives that will enhance the understanding of these critical topics and contribute to the development of more informed decision-making processes in the industry.

Weight: 453g
Dimension: 234 x 156 (mm)
ISBN-13: 9780367517595