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Effect Of Foreclosure Status On Residential Selling Price: Comment, Thomas M. Carroll, Terrence M. Clauretie, Helen R. Neill
Effect Of Foreclosure Status On Residential Selling Price: Comment, Thomas M. Carroll, Terrence M. Clauretie, Helen R. Neill
Public Policy and Leadership Faculty Publications
In this comment we examine the conclusion by Forgey, Rutherford and VanBuskirk (1994) “that the foreclosed properties sold at a 23% discount,” using a sample of nearly 2,000 residential property sales from the Las Vagas, Nevada area. We found that when not controlling for location with a set of dummy variables for zip codes, HUD foreclosed properties sold for between 12.18% and 13.96% below a random sample of properties not within one block of foreclosed properties. When controlling for location, using a set of thirty-one dummy variables for zip codes, the foreclosure discount fell to between 8.45% and 9.72%. When …