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The use of a pending mortgage reference point in valuation judgment

J. Andrew Hansz (Department of Finance and Real Estate, University of Texas, Arlington, Texas, USA)

Journal of Property Investment & Finance

ISSN: 1463-578X

Article publication date: 1 June 2004



American real estate appraisers given identical valuation problems produced statistically different value estimates. The measured variable between experimental groups was an agency‐client treatment operationalized as a pending mortgage scenario. This finding is consistent with the view of anchoring as a routinized response to agent‐client concerns. Experienced appraisers may develop heuristic behaviors which subconsciously sensitizes them to agency‐client considerations. Although further research is warranted, this study provides initial experimental evidence of a causal link between agency‐client concerns and valuation bias.



Hansz, J.A. (2004), "The use of a pending mortgage reference point in valuation judgment", Journal of Property Investment & Finance, Vol. 22 No. 3, pp. 259-268.



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Copyright © 2004, Emerald Group Publishing Limited

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