Abstract
Previous studies have documented a significant relationship between selling price and the time required to sell a house, however, there is less agreement about how to measure the relation. This article provides a new way to examine the impact of price setting on those two factors by developing a function of the average rate of price concessions, in which the initial asking price, actual sale price, and time on the market are simultaneously influenced by the same factors related to the intrinsic value of the house. This paper further uses data from the housing market in Taiwan, and empirical tests clearly show the dilemma of selling a residential property by examining how much the price concession needs to be accepted by sellers to decrease the days on the market. © EuroJournals Publishing, Inc. 2010.