Author: Paul K. Asabere, Forrest E. Huffman, and Seyed Mehdian

Start Page: 149
End Page: 155
Volume: 8
Issue Number: 1
Year: 1993
Publication: Journal of Real Estate Research

Abstract: This study is an empirical examination of the relationship between pricing and optimal time on the market (TOM). First, estimates of optimal TOMs for our data set are generated using a linear programming model. Next, a workable measure of pricing is provided based on predicted listing prices and predicted sales prices. We are then able to measure directly the relationship between pricing and optimal TOM. The results of our analysis indicate that both overpricing and underpricing would prevent the achievement of optimal TOM and result in suboptimal sales prices.