Marcus T. Allen

Florida Gulf Coast University | FGCU · Department of Business Administration

This study analyzes the price and time-on-market effects of short sale and lender-owned properties in the single-family housing market during the recent housing crisis. Short sales increased dramatically during the downturn as an alternative to foreclosures and deed-in-lieu of foreclosure transactions for resolution of defaulted mortgage loans. Usi...

Prior research documents that real estate agents sell residential properties they personally own faster and/or for a higher price than their client-owned listings. This finding is often explained in one of two ways: a) agents engage in shirking behavior when the principal cannot observe them directly (i.e., when selling a client-owned property) or...

A co-listing strategy exists when two or more listing agents jointly represent the owner of a property who desires to sell it. This strategy is not new in the real estate brokerage industry, but its popularity has increased during recent years with the formation of teams of agents who repeatedly work together using the co-listing strategy. To date,...

Using sample data from two accredited business school in the Florida State University System, one non-tenure granting and one tenure granting, and regression analysis, this paper explores variation in faculty salary levels across business disciplines. The results indicate (1) that accounting and finance professors earn more than management professo...

Purpose The purpose of this paper is to focus on issues of corporate control around the announcement of the decision of Hertz Global Holdings to relocate its corporate headquarters from New Jersey to Florida in 2013. The relocation decision and accounting irregularities discovered after the announcement raised interest from activist investors. The...

The existence of the real estate brokerage industry is generally attributed to high transaction costs in real estate markets. Brokers are typically expected to market sellers' properties, assist in contract negotiations, and coordinate the post-contract tasks necessary to close transactions. Presumably, brokers can perform these duties at lower cos...

This article illustrates the volatile nature of the premiums and discounts embedded in the prices of VIX (Chicago Board Options Exchange Market Volatility Index) futures contracts. The fact that the underlying VIX index cannot be traded leads VIX futures to be priced more on expectations of market participants than on a typical cost-of-carry relati...

This study evaluates the determinants of percentage commission rates in the residential brokerage industry. The model developed here predicts that market share of the brokerage firm, property selling difficulty, and prevailing market conditions influence commission rates. Empirical analysis using a sample of 14,891 condominium transactions from the...

Showing appointment scheduling services are an increasingly common technology in residential real estate brokerage. While specific features differ across various service providers, the concept is straightforward: listing brokers enter showing information about listed properties into the scheduling system and other agents call the service, or access...

This study investigates price and time-on-market effects of estate sales of houses versus typical housing transactions using a sample of 180,921 sold properties. The hypothesis that estate sales sell at a discount and sell more quickly than typical houses is supported by the empirical results. The results indicate that estate sale properties sell a...

Using a sample of 6001 students in the traditional Bachelor of Business Administration (BBA) programme and 228 students in the weekend BBA programme, this study considers whether undergraduate students who participate in a weekend bachelor degree programme at an Association to Advance Collegiate Schools of Business (AACSB)-accredited business schoo...

This paper examines the economic impact of restrictions against keeping domestic pets in residential dwellings. Using a large data sample of condominium sales, we empirically estimate price effects associated with pet restrictions. Our results suggest that an unrestricted pet policy creates a significant premium in condominium price, along with dis...

This study reexamines the price effects of age restrictions on housing prices. Our data cover a period when the housing market is taking a steep downturn. We argue that, when housing prices are falling, seniors are more likely to avoid investing in housing for at least two reasons. First, seniors are relatively more sensitive to their immediate equ...

Property taxes constitute a significant expense for owners of lodging properties. Both the real estate literature and the hospitality literature suggest that property tax inequities exist within various taxing jurisdictions and several models for measuring these inequities have been proposed. Measurement of vertical inequity can produce evidence of...

Using a sample of 1,339 graduates from an accredited business school and the maximum likelihood technique, this paper explores the relationship between overall academic success and performance on the Principles of Economics courses. The estimated model, which also includes some demographic variables, shows that the rank of professors teaching the c...

Property sellers and their agents sometimes use the phrases "below market value" and "below appraised value" in marketing efforts for their properties. This study questions whether or not there are price and/or time-on-market effects associated with these phrases. The findings indicate that both phrases convey useful information to the market and a...

The “Save Our Homes Amendment?to Florida’s constitution limits annual increases in the taxable value of a homestead property to 3 percent or the rate of inflation (whichever is less) as long as the property is owned by the same owner. The amount of property value protected from taxation throughout the state by this amendment has grown to over $246...

The "Save Our Homes Amendment" (SOHA) to Florida's constitution limits annual increases in the taxable value of a homestead property to 3% or the rate of inflation (whichever is less) as long as the property is owned by the same owner. The amount of property value protected from taxation throughout the state by this amendment has grown to over $246...

Student academic performance is of major interest to all stakeholders of higher education institutions. This study questions whether or not statistical analysis of information that is readily available in most universities' official records system can be used to predict overall academic success. In particular, this study is an attempt to understand...

Landlords offering a house in the rental market face a difficult strategic pricing decision. The revenue maximizing decision for the landlord involves a tradeoff between the rental rate and time on the market. Because the turnover of renters is higher than owners, and because the landlord must bear some carrying costs on a vacant house, pricing the...

Vertical equity in property tax systems refers to the assessment of all properties in a taxing jurisdiction at the same proportion of their market values. This study considers alternative methods for measuring vertical inequity in multi-family property markets using sample data. The results indicate that vertical inequities do exist in this sample,...

This study provides some insight into potential determinants of students' academic success by examining gender, age, ethnicity, and performance in two required core knowledge courses as predictors of overall grade point average for a sample of undergraduate real estate students at an AACSB-accredited business school. The results suggest that studen...

In various markets around the country, some real estate professionals are employing a new pricing strategy that involves marketing homes for sale with a price range rather than a single asking price. This strategy is often touted as a mechanism that will attract more potential buyers to look at a house and thus result in reduced marketing times for...

As is the case for many different goods and services, it is common practice in many real estate markets for sellers to offer properties for sale at listing prices just below some round number price (e.g., $99,900 instead of $100,000). The academic marketing literature refers to this practice as "charm" pricing and suggests that this strategy is an...

This study examines the market for delinquent property tax certificates, a commonly used enforcement mechanism in property tax systems around the United States. We model the value of such certificates using a continuous-time framework and propose a statistical model that allows testing for factors that affect interest rates charged by investors who...

Housing listing prices serve as sellers' initial offers in the negotiation process and both the magnitude and the design of listing prices may convey information about sellers' reservation prices. Sellers frequently offer their properties for sale at listing prices that are just below some round price (e.g., $199,900 instead of $200,000). Some rese...

This case study is designed to provide students with an entertaining exposure to the auction mechanism in real estate transactions. Borrowing liberally from an actual real estate auction, the case delves into (a) reasons why a property owner might choose the auction mechanism, (b) strategies the property owner and the auctioneer can use to attempt...

Previous researchers have proposed numerous methods for detecting and measuring vertical inequity in property tax systems, where vertical equity refers to the assessment of all properties in a taxing jurisdiction at the same proportion of their market values. With evidence of inequitable assessments, property owners may be able to reduce property t...

In the property tax literature, an ad valorem property tax is considered equitable if all properties in the taxing jurisdiction are subject to the same effective tax rate. That is, all properties, regardless of value or type, should be taxed at the same percentage of their market value. Because market value is a theoretical construct and not direct...

Previous research on the returns to real estate investment trusts (REITs) has considered whether REITs are systematically exposed to general stock-market risk and interest-rate risk. This study examines how the sensitivity of REIT returns to these factors may be influenced by various REIT characteristics. Using a sample of publicly traded REITs, we...

This study considers whether auctioned properties sell for different prices than they would bring through private negotiation. After reviewing the procedural aspects of HUD auctions, we compare the observed prices of properties sold at one such auction with predicted market values based on assessment ratios for the region to detect any discount or...

Mortgage interest rates have become more integrated with other capital-market interest rates over recent decades, apparently as a result of the deregulation of financial markets. The link is both imperfect and time-varying. Mortgage rates during some time periods appear to be "sticky" with respect to their adjustment to changes in capital-market ra...

Although previous research addresses the price effects of below-market loan assumptions in housing transactions, no direct evidence exists regarding the price effects of above-market loan assumptions. This study develops a hypothesis of strictly nonnegative price effects in assumption financing and empirically documents a positive impact in housing...

This study examines Federal Government office leases using data from Texas and Oklahoma during the 1981-1991 time period. The lease indifference model presented here indicates that landlords may be willing to accept lower rents from government tenants due to reduced tenant risk, but that such discounts may be offset by other premiums implicit in th...

In this paper, we reexamine the issue of whether corporate relocation assistance programs for transferred employees significantly affect sale prices of single-family homes. We estimate a hedonic price equation that includes physical housing characteristics, location factors, occupancy status, and type of seller for a sample of 2,441 transactions. S...

Current U.S. housing policy prohibits discrimination in the sale or rental of housing or in the provision of brokerage services on the basis of race, color, religion, sex, national origin, disability, or familial status. Since 1988, an exception to this policy has permitted owners and operators of buildings and facilities that were intended to be o...

This paper models the capital structure decision facing partnerships and tests the implications using panel-data regression analysis for a sample of real estate limited partnerships. The model shows that if an optimal capital structure exists for non-taxed firms, it is a function of personal tax effects, costs of financial distress, and substitute...

This paper argues that security clauses in lease contracts create a contingent claim on the value of the leased property, which resembles a put option on common stock. Adapting the standard results from option pricing theory gives insight into how landlords determine security deposit amounts, which serve to guarantee performance of the contract. Em...

In this study, we assess the balance sheet exposure of commercial banks to the real estate market, and develop a hypothesis on the potential systematic effects of real estate conditions across banks. By applying a seemingly unrelated regression (SUR) model to bank portfolios, we test for the relation between bank values and a real estate market pro...

This paper examines implicit price differences of rental housing characteristics across various property types to measure whether determinants of rents are valued in the aggregate or separately. The results show that hedonic price functions are not identical across property types which suggests that ordinary least squares is not the appropriate est...

This paper resents an event-time study of the wealth effects associated with the corporate decision to lease real estate assets. The analysis provides a measure of the valuation consequences of real estate lease transactions for corporate lessees to determine whether such transactions offer a net benefit to lessees in terms of a common stock price...

This research investigates the valuation impact of financing decisions on the common stock of real estate corporations. We compare the results of our study with the results of similar studies in the corporate finance literature to test whether the response to security offerings by real estate firms differs systematically from the response to offeri...

Grade inflation is the increase of students' average GPA due to the mere passage of time, unconnected with increased academic achievement. Past studies on grade inflation in higher education have demonstrated the need to control for variables that may mask increases in average GPA that are due strictly to time. This study provides some insight into...

Abstract Housing listing prices serve as sellers' initial offers in the negotiation process and both the magnitude and the design of listing prices may convey information about sellers' reservation prices. Sellers frequently offer their properties for sale at listing prices that are just below some round price (e.g., $199,900 instead of $200,000)....