INFORMATION ASYMMETRY IN REAL ESTATE: A LITERATURE REVIEW
DOI:
https://doi.org/10.4270/ruc.20128Keywords:
Information asymmetry. Distortions in the real estate market. Real estate depreciation. Fair value.Abstract
This goal of this article is to present a review of the literature on information asymmetry in real estate. The literature review is based on four different points: property price distortions caused by the lack of information and illiquidity of the market; adverse selection; the predictability of returns in real estate; and real estate depreciation, relating the selling time with the property age. In order to perform the literature review, the main international journals on economics, finance, real estate, accounting, and geography were consulted, using “information asymmetry†as keyword. The article calls the attention to the concerns of information all those who enter the property market should have and the deviations that may occur regarding fair value, related to the four points above mentioned. It is also possible to conclude that there is a clear underrepresentation of studies in the accounting and fiscal areas addressing information asymmetry.
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