This paper reports the results of a study of single-family, detached home transfers, conducted to determine if rational expectations holds as a function of owner-tenure. A counter-rational expectations notion, which has intuitive appeal, is that sellers with relatively long owner-tenure may be more willing to accept "low" offers compared to sellers with short owner-tenure. The study supports this notion. Owner-tenure is found to be significantly related to the real profit realized by sellers. This implies that rational expectations does not hold as a function of owner-tenure and that owner-tenure is a relevant factor for buyers to consider in formulating a purchase offer.
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