I would not misrepresent the size of your house in any form or fashion. I tust the buyers and their brokers helping them look for a 4 bedroom house to be perceptive enough to realize that your house has spare room they could use as a study, a hobby room, a play room, or whatever extra space they need. Although home viewing traffic is not generally heavy these days getting no traffic at all is extreme. Several other reasons may account for your lack of traffic. I am afraid I am on the side of your realtor. Discuss with yhim/her the other possible reasons for the low traffic. Good luck!
You need to know how many homes, like yours, since your home hit the market, have:
1. lowered their price
2. come on the market
3. gone into escrow
Home are selling, just not yours. We need 10-12 showings or one offer in the first two weeks or a price adjustment is in order. You need to sell in the first 30 days to make the most money. Listings in MY mls are selling at 99.7% of asking price in 30 days. At 120 days they are selling for 92.7%.
We all miss the hordes of prospective buyers who who just a few short months ago would descend on our listings the first day we put them on the market, and if we didn't sell that first few day, the steady stream that continued to look them over for the ensuing days until they sold. How things have changed! You just described the reality in many neighborhoods across the country. Suddenly, we have so many more houses and so few buyers.
It is disappointing when you have a lovely, lovely product that is priced right., and sure to be a hit with any buyer who walks through the door, but no buyer does. The question is what to do? Not being in your area, I am not sure what the average time on the market might be but suspect it may be quite a bit longer than 4 months. It is longer, even in the so-called "better " market areas.
I suggest you keep working with your realtor and brainstorm to find creative ways to get people through the door. You know, they say it takes a village to raise a child. In these times collaboration goes a long way to come out ahead of the market. We really don't need hordes of people to see the homes we are selling. Just as it is in "good' market jtinew, all we need is the right person at the right time - just one interested, qualified buyer. I might add that in this market we also need a good dollop of patience and a positive attitude. We still have buyers out there.
Most people know they can use extra bedrooms for things like a study, but some large families are specifically searching for 5+BR, so I would leave it as 5BR. As for pricing, I would not put any credence into your appraisal. You need to price as compared to your direct competitors, so do as Daniel suggests below and visit them and then price yours so it is readily perceived as the best overall value. Best of luck to you!
A couple of suggestions for you:
1. Ask your Realtor to provide you with a list of what he considers the best comparables to your own home. Then ask him to show you these homes in person so that you can compare them to yours.
2. Next, ask him to call the listing agents of these other homes and see what the traffic has been. It may be that there have been no showings of these other homes either, which would indicate that there are no buyers currently looking. Sometimes, you can do everything right and due to external influences, your home does not sell.
3. Ask your agent to provide you with his marketing plan and make sure that he has followed thru with his promises.
I'm not convinced that listing a 5 bedroom home as a 4 bedroom + study will generate different results. In the MLS for my area, most people just select the minimum # of bedrooms, with no upper limit. So, in your case, the home should show up if someone were looking for either a 4 bedroom or a 5 bedroom home.
Best of luck!