Diploma Thesis from the year 2012 in the subject Business economics -
Investment and Finance, grade: 1, Management Center Innsbruck
(Wirtschaft & Management), language: English, abstract: This thesis
attempts to precisely define the term 'distressed residential real
estate', enable real estate investors to develop practicable methods,
how to anticipate bubbles in residential real estate markets, how to
valuate distressed properties and how to successfully negotiate about
purchase prices with potential sellers of distressed residential real
estate assets. The thesis will therefore analyze different residential
real estate markets that previously experienced strong market
fluctuations and corrections regarding conditions that influence the
origination or existence of a bubble and accordingly deduce a schematic
model helping investors to indicate the potentiality of an existing or
developing (price) bubble in residential real estate markets ex ante.
The thesis will furthermore cover the topic of valuation and elaborate
modern valuation methods and techniques, which are used in financial
valuation nowadays, and apply them - if exercisable - for the use of
valuation on real estate assets, more specific, for an investor's use
needing applicable methods to appraise value of distressed residential
real estate assets. The thesis will finally try to combine applicable
findings of these two topics (bubble anticipation and asset valuation)
and use these findings to comprehensively prepare investors for
negotiations about purchase prices with potential sellers of distressed
assets. Therefore the thesis will cover the topic of business
negotiation, examine existing and promising methods and techniques and
derivate applicable implementation for an investors purpose which is to
acquire distressed residential real estate properties at discount inter
alia resulting from negotiation proficiency.
