Budgivare och auktionspris

Abstract

We have examined how the final price in auctions of residential condominium apartments is affected by the number of bidders participating. If the number of bidders has a significant effect determining the final price, this will confirm previous research within auctions theory and could provide strategic insights in the sales process. Our data sample is based on condominium apartment sales in Gothenburg during March and April of 2016. The study shows that the number of bidders has a significant effect on the final price and that auctions therefore is a more effective selling method compared to negotiated sales when selling residential condominium apartments. The average incremental price difference an additional bidder provides is 785 SEK per square meters.