Selling Price and Selling Time: The Impact of Seller Motivation
Michel Glower, Donald R. Haurin, Patric H. Hendershott
NBER Working Paper No. 5071
This study considers the role that seller motivation plays in determining sales price and selling time. We find that sale prices are directly related to the estimated value of the property and to the amount of over-pricing, which is directly related to the seller's level of motivation. Further, a seller who has a planned date to move will over-price less (set lower list prices relative to market value) and sell more quickly than a seller with no definite move date. A seller who is willing to move later will over-price more and sell more slowly than a seller who wants to move sooner.
Published: Real Estate Economics, Vol. 26 (1998): 719-740.