Purpose This paper aims to examine how price discounting during negotiations affects seller satisfaction in existing-home sales within a reference-dependent framework. The authors focus on whether satisfaction depends solely on final outcomes or also on features of the negotiation process. In particular, the authors ask whether discounting matters only through achieving the seller’s willingness to accept (WTA), or whether it remains associated with satisfaction even when this benchmark is met. Design/methodology/approach The authors use a Web-based survey of individuals who sold an existing home through brokerage intermediation in Japan. Seller satisfaction is measured on a five-point ordered scale. Key explanatory variables include the discount rate from list price to sale price, outcomes relative to the seller’s stated WTA and time-related measures capturing realized duration and deviations from expected time-to-sale. The authors estimate ordered logit models and report predicted probabilities for the highest satisfaction category. Findings Higher discount rates are robustly associated with lower seller satisfaction. While sellers report higher satisfaction when the final sale price meets or exceeds their stated WTA, discounting remains negatively associated with satisfaction even among WTA achievers. Time-related variables also matter: selling within or faster than the seller’s expected time-to-sale is associated with higher satisfaction, whereas longer realized durations are associated with lower satisfaction. Originality/value The results suggest that seller satisfaction reflects not only final outcomes but also process-based disutility arising from negotiations. The persistence of the negative association between discounting and satisfaction among WTA achievers is consistent with the presence of multiple and shifting reference points during the selling process. These findings highlight the role of expectation formation and management in brokerage-mediated housing markets, with potential implications for seller participation in existing-home markets.
Toshiyuki Okoshi (Fri,) studied this question.