caa a22 4500 477129722 CHVBK 20180405111701.0 cr unu---uuuuu 170330e19971101xx s 000 0 eng 10.1023/A:1007763907164 doi (NATIONALLICENCE)springer-10.1023/A:1007763907164 Discount Point Concessions and the Value of Homes with Conventional versus Nonconventional Mortgage Financing [Elektronische Daten] [Paul Asabere, Forrest Hoffman] This is an empirical investigation on the impacts of certain seller concessions on home prices. Specifically, we examine the impacts of two seller concessions: discount point concessions (DPCs) and closing cost concessions (CCCs) on home prices. Using hedonic analysis, we find that DPCs are capitalized into home prices. We do not find that CCCs produce capitalization effects. DPCs appear to work in a manner similar to other creative financing techniques such as a buydown mortgage. DPCs enhance affordability by lowering interest costs and debt service payments. DPCs thus lead to increases in effective demand. CCCs will reduce out of pocket expenses but will not necessarily enhance long-term affordability, thus their price effects are less certain. We show that these price premiums are prevalent only when conventional mortgage financing is used. When FHA and VA loans are used, premiums disappear. Of course, governmental insured/guaranteed loans are much more subject to regulation than conventional loans, which may prevent homesellers from price premium maximization. The study establishes the relative significance of discount points versus closing costs as marketing incentives. It appears that the use of discount points as a marketing incentive produces more capitalization effects. The presence of such capitalization effects is consistent with results found in other creative financing studies. Kluwer Academic Publishers, 1997 financing nationallicence discount points nationallicence closing costs nationallicence seller concessions nationallicence Asabere Paul School of Business and Management, Temple University, 19122, Philadelphia, PA aut Hoffman Forrest School of Business and Management, Temple University, 19122, Philadelphia, PA aut The Journal of Real Estate Finance and Economics Kluwer Academic Publishers 15/3(1997-11-01), 261-270 0895-5638 15:3<261 1997 15 11146 https://doi.org/10.1023/A:1007763907164 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1023/A:1007763907164 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Asabere Paul School of Business and Management, Temple University, 19122, Philadelphia, PA aut NATIONALLICENCE 700 1- Hoffman Forrest School of Business and Management, Temple University, 19122, Philadelphia, PA aut NATIONALLICENCE 773 0- The Journal of Real Estate Finance and Economics Kluwer Academic Publishers 15/3(1997-11-01), 261-270 0895-5638 15:3<261 1997 15 11146 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer