If a buyer is looking at ten homes similar to yours, is your home the best positioned home? When you bought, you didn't buy the home that was in last place. You didn't by the home that was in second place (at least most people don't). Instead, you bought the home you thought was the best, based on what you're looking for.
Unfortunately, Realtors only know the 'lower your price'. While this is true in many cases, it's foolish to believe this without seeing what the marketplace is doing.
For example, let's say your home is in the Cathedral area. If no other home has sold in the Cathedral area then it might not be a price issue. Instead, it could be a location issue. What is the average marketing time in the Cathedral area is 270 days. Well, you're nowhere near that.
Before you can make any decision on whether it's price or not, you have to understand the market. Did your agent show you ten similar homes for sale that a potential buyer might look at along with yours? Do you know exactly how many homes have sold in the last four months? How much inventory is on the market. If there are ten homes on the market and they are selling at a rate of one per month, then you have ten months worth of inventory on the market. Many areas have over two years worth of inventory.
The bottom line is you probably do not have the answers to these questions. Therefore, we don't know for sure what the issue is. Once you understand the market and all it's variables, only then can you decide if it's a price issue.
To just lower your price is irresponsible and possibly not needed.
Here is an article I wrote that is published on Ezine Articles. Hopefully, this will help you. http://ezinearticles.com/?id=3024529.
In the mean time, are you getting your value's worth from your Realtor? If not, demand less commission.
Example: 10 listings with an average of 1 sale per months leaves you with 10 months of inventroy. Maybe if the price is reduced the number of months of inventory will be less and generate a quicker sale.
So look at what has sold and what is on the market in:
See if there is a difference between the price buckets and current inventory.
First Weber Group
Certified Distressed Property Expert
Looks like Setongirl did what was suggested by probably her former agent in lowering the price, but I'm not so sure the agent recommended another agency when doing so. Check out the price history on her house that is on the page attached to the link below.
If you were to reduce your price to $279,000 + offer a $5750 Concession package that a Buyer could use toward closing costs and/or an interest rate 2-1 Temporary Buydown (where the Buyer saves $315/month the first year and $162.25/month the second year) that may be more enticing for potential Buyers.
To create a competitive edge in this market you need to think outside the box.
The lure of the prize is often the catalyst for the sale. Good Luck!
Calculate small cost for the Seller & HUGE savings for the Buyer:
As the house attached to the link below is the only agent represented listing in Joliet for 290k, even though the days on Trulia go back beyond Oct., I'm still thinking it's yours. If it is, I'm certainly not an agent, but comps are comps, and even at 279,000, you're much better off than more than anyone would care to count.
For some reason when I read your post, the song written by Cat Stevens made popular by Rod Stewart and later Sheryl Crow came to mind, "The First Cut is the Deepest."
Sorry to say, your agent is probably right. Hopefully this will be the first and only cut in price. Maybe a little more proactivity on your part might help in acheiving this. Below is a link to a blog. While it's directed to FSBOs, there's still some ideas in it that you could possibly use to supplement your agent's efforts. Anything you might consider doing, consult with your agent first, and always use her for the contact person. Good luck.
I really do understand your dilemma, a lot of home owners are going through the same situation. I am presuming your agent has done a Comparitive Market Analysis of your neighborhood and that is why they are asking you to reduce the price. If not, then ask them to do that for you so you can see what homes are truly selling for.
Your agent really does want to help you to sell, just sit down with them and really talk about your concerns and ask questions.
I wish you the best!