Estimating the optimal market price to sell an apartment

Detalhes bibliográficos
Autor(a) principal: Abreu,Carlos Alexandre Camargo de
Data de Publicação: 2018
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Ambiente construído (Online)
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1678-86212018000400319
Resumo: Abstract This paper demonstrates an investment economic analysis model based on Real Option Valuation Theory applied to decision-making of individual real estate investors. The model captures the valuation of flexibilities caused by expected market trend and uncertainty and offers an optimized value for the investment opportunity. A Real Option for investment delay is used applied to the case of postponing the selling of an apartment until the estimated "best" optimal market price and option value. Application of the model is made using market data from three Brazilian major cities' real estate market. As an important finding we have the estimation of an expanded Net Present Value for the investment when apartment selling is exercised at the optimal market price defined. It is possible to use this model to forecast what would be the optimal price and moment to sell an apartment in an investor point of view.
id ANTAC-1_85a7312b09d5620508a7218e7779dde5
oai_identifier_str oai:scielo:S1678-86212018000400319
network_acronym_str ANTAC-1
network_name_str Ambiente construído (Online)
repository_id_str
spelling Estimating the optimal market price to sell an apartmentReal optionsUncertaintyInvestment decisionReal EstateAbstract This paper demonstrates an investment economic analysis model based on Real Option Valuation Theory applied to decision-making of individual real estate investors. The model captures the valuation of flexibilities caused by expected market trend and uncertainty and offers an optimized value for the investment opportunity. A Real Option for investment delay is used applied to the case of postponing the selling of an apartment until the estimated "best" optimal market price and option value. Application of the model is made using market data from three Brazilian major cities' real estate market. As an important finding we have the estimation of an expanded Net Present Value for the investment when apartment selling is exercised at the optimal market price defined. It is possible to use this model to forecast what would be the optimal price and moment to sell an apartment in an investor point of view.Associação Nacional de Tecnologia do Ambiente Construído - ANTAC2018-10-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S1678-86212018000400319Ambiente Construído v.18 n.4 2018reponame:Ambiente construído (Online)instname:Associação Nacional de Tecnologia do Ambiente Construído (ANTAC)instacron:ANTAC10.1590/s1678-86212018000400307info:eu-repo/semantics/openAccessAbreu,Carlos Alexandre Camargo deeng2021-04-09T00:00:00Zoai:scielo:S1678-86212018000400319Revistahttps://seer.ufrgs.br/ambienteconstruidohttps://old.scielo.br/oai/scielo-oai.php||ambienteconstruido@ufrgs.br1678-86211415-8876opendoar:2021-04-09T00:00Ambiente construído (Online) - Associação Nacional de Tecnologia do Ambiente Construído (ANTAC)false
dc.title.none.fl_str_mv Estimating the optimal market price to sell an apartment
title Estimating the optimal market price to sell an apartment
spellingShingle Estimating the optimal market price to sell an apartment
Abreu,Carlos Alexandre Camargo de
Real options
Uncertainty
Investment decision
Real Estate
title_short Estimating the optimal market price to sell an apartment
title_full Estimating the optimal market price to sell an apartment
title_fullStr Estimating the optimal market price to sell an apartment
title_full_unstemmed Estimating the optimal market price to sell an apartment
title_sort Estimating the optimal market price to sell an apartment
author Abreu,Carlos Alexandre Camargo de
author_facet Abreu,Carlos Alexandre Camargo de
author_role author
dc.contributor.author.fl_str_mv Abreu,Carlos Alexandre Camargo de
dc.subject.por.fl_str_mv Real options
Uncertainty
Investment decision
Real Estate
topic Real options
Uncertainty
Investment decision
Real Estate
description Abstract This paper demonstrates an investment economic analysis model based on Real Option Valuation Theory applied to decision-making of individual real estate investors. The model captures the valuation of flexibilities caused by expected market trend and uncertainty and offers an optimized value for the investment opportunity. A Real Option for investment delay is used applied to the case of postponing the selling of an apartment until the estimated "best" optimal market price and option value. Application of the model is made using market data from three Brazilian major cities' real estate market. As an important finding we have the estimation of an expanded Net Present Value for the investment when apartment selling is exercised at the optimal market price defined. It is possible to use this model to forecast what would be the optimal price and moment to sell an apartment in an investor point of view.
publishDate 2018
dc.date.none.fl_str_mv 2018-10-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1678-86212018000400319
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1678-86212018000400319
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/s1678-86212018000400307
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Associação Nacional de Tecnologia do Ambiente Construído - ANTAC
publisher.none.fl_str_mv Associação Nacional de Tecnologia do Ambiente Construído - ANTAC
dc.source.none.fl_str_mv Ambiente Construído v.18 n.4 2018
reponame:Ambiente construído (Online)
instname:Associação Nacional de Tecnologia do Ambiente Construído (ANTAC)
instacron:ANTAC
instname_str Associação Nacional de Tecnologia do Ambiente Construído (ANTAC)
instacron_str ANTAC
institution ANTAC
reponame_str Ambiente construído (Online)
collection Ambiente construído (Online)
repository.name.fl_str_mv Ambiente construído (Online) - Associação Nacional de Tecnologia do Ambiente Construído (ANTAC)
repository.mail.fl_str_mv ||ambienteconstruido@ufrgs.br
_version_ 1754209104026402816

Registros relacionados