The single most clear indicator of marketability of a property is showings. The rule of thumb is 10-12 showings will produce one offer. if there are no showings, it is unlikely you will see an offer.
The biggest problem I see with home sellers and their Realtors is unmet expectations. I suggest sitting down and looking at the market activity every week or so. How many new listings, how many homes have lowered their price, how many went into escrow., etc.
I also recommend that you as the seller take some responsibility and know your competition. The NAR buyer survey shows that they average buyer looks at 10-12 homes before they make an offer. So you should know what homes a buyer that might be comparing your home in terms of size, amenities, price, etc. Selling a home is more like playing chess than poker. If they lower their price, what do you do. If one of your prime competitors sells, what was the selling price, terms, etc.
A good Realtor will keep you informed of your competition so you can make the right strategic decisions.
Know that listing price is a MARKETING TOOL. Overpricing in this economy is not a wise move. I suggest to my sellers that they underprice . No showings, lower the price.
Did you ask the 2 buyers and their agents that came through your property for their feedback? What did they say about the price and how it compares to others they've seen? Have you looked closely at the comps (solds, NOT actives)?
And if you have to move by December, then you have to factor that into your strategy. Your wish to get more tha market value is not in line with your need to sell by the end of December (nor sell in the first place).
Barbara Reagan - Long & Foster Realtors
You're not alone in your questions or situation. There's some key things I would need to know before I say that a price reduction is mandatory, but based on your question, I would say that it's very likely you need to reduce the price. Here's why:
1. 2 Showings in 3 months - YIKES! You may be as much as 10% off, assuming that a 2 Million dollar home is common in your area.
2. You need to sell by Christmas. You really can't AFFORD to wait it out.
3. You think your home is worth $2.5 Mil. Not sure why, if it was worth that you would have had an offer already.
Price reductions are tough, but I agree with Bobbie, your Realtor should give you some compelling evidence on why you need to reduce the price.
I understand that making a price reduction, especially at such a large amount, is concerning at best. But your realtor should be able to show you the facts of record to support the necessity. What is the absorption rate in your price range? I mean how many homes are selling divided by the number of homes for sale in your price range. If that number is high the only way to counter it to comply with your timeline is through a price reduction. That opens the potential buyer pool to a wider number. Best of luck!!