Identifying how the time on the market affects the selling price: a case study of residential properties in Paphos (Cyprus) urban area

Purpose The purpose of this study is to investigate how the degree overpricing (DOP) and other variables are associated with time on market (TOM) final selling price (SP) for residential properties in Paphos urban area. Design/methodology/approach hedonic pricing model was used examine association TOM SP various factors. independent variable DOP two dependent were investigated via ordinary least squares (OLS) regression models. In first set models second SP. A sample N = 538 completed transactions from Q1 2008 Q2 2019 estimate optimum that a seller must apply current value property order achieve highest shortest TOM. Findings results also suggest thin less transparent markets higher than high transaction volumes. mature like USA UK where actual sold prices published, around 1.5% which much lower 11% identified study. Practical implications It found buyers willing pay more same house bigger plot plot. outcome smaller houses sell faster at per square meter larger houses. Smaller affordable Social There large pool Higher demand Respectively shorter Originality/value database unique, an estate agent located managed 27,000 20 years. This data most accurate information Cyprus' transactions.