Author: James D. Shilling, John D. Benjamin, and C.F. Sirmans

Start Page: 129
End Page: 140
Volume: 5
Issue Number: 1
Year: 1990
Publication: Journal of Real Estate Research

Abstract: This paper provides a framework for adjusting distressed real estate properties for liquidating discounts. We estimate the probability of receiving an offer on a property in any particular short interval of time. Our empirical evidence allows us to predict the average rate at which offers will occur in any particular interval of time. Further, it allows us to arrive at an estimate of net realizable value, adjusted for selling expenses.