How can LLMs extract property quality? What role does contract design play in addressing information problems?
Listen: open.spotify.com/episode/4fV1...
Watch: youtu.be/D31LfMYDGfQ
So Hye's website: www.sohyeyoon.com
#RealEstate #PropTech #Economics

Her research explores two approaches:
- Revenue-sharing contracts that include profit share
- AI analysis of listing descriptions for quality signals
These strategies show potential to reduce iBuyer losses.

iBuyers face two information gaps:
- Seller urgency levels (hassle costs)
- Subtle quality issues only homeowners know

Using repeat sales data, So Hye shows how these gaps create adverse selection patterns.

Brian notes commercial PACE has been adopted by two-thirds of U.S. states across the political spectrum.

Could this work in UK/Europe? They discuss the challenges.
#PACEFinancing #RealEstate

Cameron's Florida research finds:
20-25% home value increase from residential PACE improvements
50% reduction in insurance premiums
60% of funds go to disaster-proofing, not energy efficiency
Only 2% take-up rate: room for growth ➡️

How? PACE loan repayments run with the property like taxes, not with the owner.
When the property sells, the new owner assumes remaining payments. Tenants pay their share of the loan through the tax bill, just as they benefit from lower energy costs. ➡️

Brian explains two market failures blocking green investments:
Payback periods (15-20 yrs) often exceed property hold periods (10 yrs).
Landlords fund upgrades but tenants capture energy savings.

PACE addresses both through its structure. ➡️

A better description might be: the indexers vote against pro-competitive incentives, in the rare case those are proposed.

Both theoretical and data science/empirical skills are needed.
1) continuation of Amel-Zadeh et al.
2) public procurement auction data collection
3) general equilibrium theory and simulations along the lines of Schmalz & Zame

Harald's research suggests that simple nudges may create spillover effects into other energy behaviors. But which behaviors and why? 🤔
Spotify: open.spotify.com/episode/2x13...
YouTube: youtu.be/xAX5XlFUeOc
#RealEstate #Sustainability #BehavioralEconomics 2/2