Beergirl8,

First thing, I just got in from a night out at a dive bar in south Austin ( http://www.myspace.com/trophystx ) . So since you have a name such as Beergirl8, I felt I had to respond.

Second thing, I don't know what the heck this very knowledgeable agent ( Jack Mulrooney ) is referring to, but here is a copy and paste of his post that appeared on another site:

"Also ask your REALTOR for a saturation report. If there are no sales within 25% either side of yours, dropping the price now probably won't help."

BTW, Beergirl8 I like to have broken my darn neck at your ski facility on the bunny slope some time ago. It was a riot. I thoroughly embarrassed and humiliated myself there, much like this post will do 6 hours from now. :)

Our house has been on the market since last July. We have lowered the price three times for a total of 25k.
Do you think that sends the wrong message to buyers?

telling your potential buyers that you have 2 mortgages does nothing to tell them that you're motivated.

just have your agent explain that "you're motivated"... (although buyers usually translate that to mean that you're highly negotiable).

I don't necessarily agree with the "if it ain't sold yet, then you have to reduce the price" theory. If you're in a marketplace where the average sale takes 120 days, and you've only been on the market 60 days... you may just not have given it enough time. Assuming, of course, that you're priced properly.

If you're anxious to be sold in less-than-average time... it's possible that a price reduction might help... but then again... it might not. it all depends on your local market and what's going on there.

The home may be priced right, according to the numbers generated by the past,.. but if the property is not selling,.. it simply is not priced right and needs to be reduced. One of the problems with pricing is that based on traditional pricing methods, the agent looks at what has sold and closed in the last year, or what is currently available. At this point, my valuations consist of Actives, Pendings and Solds and I weight the Pending properties by a factor of 2. The Pending are the most accurate indicator of what our market is doing,.. right now.

The truth is however that if the property is being shown but no contracts are coming in,.. you need to reduce the price of the home.

I think they are told in hopes that it will show the buyer that we are very modivated. Makes me feel a bit exposed in this small town where alot of people know us.

Today, there are a lot of homes on the market... and buyer's are very nervous.

Today's buyer isn't looking for a "reasonably priced home"... they are looking for bargains (low hanging fruit) that are below average market value... in the hopes that a very low price will insulate them from potential further dropping.

In today's marketplace, we're seeing average market times of 120-180 days. If you've been on less time than that... welcome to the "average".

btw... why buyers should be told about your situation (2 mortgages) is beyond me... what business is it of theirs how you're financed??