 |
| Repair Expenses, Selling Contracts,
and House Prices Author: John R. Knight, Thomas Miceli and C. F. Sirmans Start Page: 323 Abstract: This paper
examines the impact of repair expenses on the selling price of a house. Using data from
settlement statements, we investigate the frequency and extent to which performance of
major repairs is part of the sales contract. We find that most homes are restored to a
"normally maintained" state each time the home changes hands, and that the cost
of bringing the home to this condition is included as part of house selling price. This
implies it may be unnecessary to measure maintenance levels when using transaction data to
study components of house price or to construct house price indexes. |
