A pricing model for real-estate business in Bangladesh incorporating the uncertainty in buyer’s readiness: considerations during COVID-19 pandemic

The real-estate business is considered one of the significant contributors to the economy of Bangladesh. However, the sudden occurrence of the COVID-19 pandemic exacerbates the housing business and the owners have been struggling to sell their apartment units. The instability of the income pattern of the customers and dwindling competitions among the real-estate business marketers during and after the COVID-19 pandemic necessitate revising the sales plan of the rental units. This research aims to develop a three-stage optimal selling model considering two random factors that the sellers face exclusively during the COVID-19 pandemic. The number of units sold in each stage is influenced by two random variables: (i) the time span between the initial stage and the final stage and (ii) the income-level inconsistency. This study highlights the randomness of these two factors with the aid of gamma distribution and optimizes the pricing model for three different stages. The findings of this research are illustrated with both numerical and graphical representations considering two different scenarios named identical and independent strategies of pricing. A comparative analysis has been conducted for these two strategies which would help the management to switch decisions depending on the market volatility. The results indicate that sellers can maximize their revenues by selling most of the units at the initial stage; however, sales in the second and third stages are also significant, depending upon the readiness of buyers.