Effects of Factors Influencing Residential Property Negotiation Process on Market Outcome in Akure, Nigeria

Abstract

This study determined the effect of factors influencing residential property negotiation process on the final market outcome in Akure, Nigeria. The research design was field survey in which the target population were the property buyers within the three selected residential densities of the city.  Data was elicited from the self administered structured questionnaire to the 400 property buyers sampled. Data analysis was performed using logistic regression model where the dependent variable was market outcome and the independent variables were eleven dichotomous variables. The findings revealed that some variables showed significant values at p-value ≥ 0.05 influences on market outcome. These variables were agents’ commission, owners’ reservation prices, communication channel, property titled, duration of transaction, owners’ negotiators behaviours and neighbourhood characteristics. The variables that showed insignificant values of influence on market outcome were number of negotiators in each transaction, buyers’ reservation price, strategy employed, buyers’ negotiation behaviour; and cultural differences. There was information asymmetry between the owners’ negotiators and buyers as most of the buyers did not have an independent negotiators to strike a fair outcome (final price) The study therefore recommended two independent and  skilled negotiators who had the detailed knowledge of  information on the previous market condition and range  upon which to strike a fair deal. Equally there should be parallel market price regulatory agencies that must keep and regularly display past records of transactions. Such must be used to negotiate present transactions. No doubt this will break the information advantage that often make owners to have an edge over the buyers.

Keywords: Akure, Market Outcome, Negotiation Process, Property, Residential

DOI: 10.7176/JESD/12-8-08

Publication date: April 30^th 2021