What Determines a House's Selling Price? - Brief Article

USA Today (Society for the Advancement of Education), August, 1999

Research confirms what many real estate agents probably suspected: A homeowner's motivation to sell affects the final selling price and how long a house stays on the market. The owners with a high motivation to sell--such as those who already have purchased another home--had their houses on the market for up to 30% less time than other sellers.

Moreover, highly motivated individuals end up selling their homes for about 10-11% less than similar homes owned by less-motivated sellers. "People who have a new job, or have bought another home, may not have time to wait for the highest possible offer," explains Donald Haurin, professor of economics, Ohio State University, Columbus.

Researchers long have assumed that house prices are determined by the market and that the characteristics of the buyer and seller don't make a difference. The study results show otherwise. "We found that homeowners vary quite a bit in their motivation to sell, and those differences play a role in sales price and selling time."