Selling Price and Marketing Time in the Residential Real Estate Market

Time On-market and Price Trade-offs in High-rise Housing Sub-markets

“…These two papers conclude that there is a notable difference between different price sub-groups. However, the earlier finding by Kang and Gardner (1989) suggests otherwise: TOM has a significant negative correlation with the ratio of selling price to list price for all their sub-groups. Asabere et al (1993) show that the common strategy of overpricing is counterproductive and would prevent the achievement of optimal TOM.…”

“…As noted by Yavas and Yang (1995), the study by Kang and Gardner (1989) fails to recognise the simultaneity problem between TOM and selling price-i.e. TOM and selling price are dependent on each other.…”

“…While the relation between TOM and list price has been well-established (Kang and Gardner, 1989;Yavas and Yang, 1995), this study makes the following contributions. First, TOM in different housing sub-markets may differ.…”

“…A summary concludes the paper. Kang and Gardner (1989) report that marketing time is not significantly and constantly related to selling price. Their results support the argument that the relationship between TOM and selling price varies with conditions in the housing market, as measured by the contract mortgage rates.…”

Bidding Conventions and the Degree of Overpricing in the Market for Houses

“…negative if the seller has underpriced)-is clearly an important factor in the selling process, potentially affecting the number of bids submitted, the length of time a house will remain on the market and the final sale price (Jud et al, 1996;Levin and Pryce, 2007). Unsurprisingly, therefore, DOP has proved to be an important concept in both theoretical and empirical models of the housing transactions process (Kang and Gardner, 1989…”