It's impossible to say when you should consider reducing your price without knowing all the circumstances, but right now if you haven't received an offer in 30 days, it's time to re-evaluate your price.
I just attended meeting of aal the mortgage officers for one of the larger regional banks, and their treasurer and ecomomist was finding a home price drop of 1-2% per month, and expected it to continue through this year. What that means to you is that for every month your home sits on the market, it is worth 1-2% less. If you have a $400,000 home and it doesn't sell in 2 months, it could be worth $16,000 less. So even if you dropped the price by $10,000 you are still behind the eightball. You could be playing catch-up with the market for months.
An example of this is someone I know who was selling a condo in Naples Florida (be glad you are not trying to sell there). They placed their property on the market in 2005 at just above what others had recently sold for (at the height of the market). Other units came on priced lower, and sold. They lowered their price to that level, but now the market had dropped even more. This scenario went on for 2 years until they dropped the price fast enough to catch up with the market. The bottom line - they originally listed their condo at $280,000 when they could have sold it for $250,000. Instead they play the waiting game and ending up selling for $140,000!
This is an extreme example in a market that is much worst then we have here on the North Shore of Massachusetts (we actually have it pretty good for the most part)., but I have seen this same thing happen locally.
If you home is not selling, there is only one reason - marketing, and pricing your home correctly is an intergral part of marketing. Determining the correct price in a declining market isn't easy, though. But if your home is not getting many showings, or a lot of showings without offers, drop the price quickly if you are really serious about selling.
Showings with offers are the key!
More importantly, what is the comparative data and the current feedback from showings telling you. Most house that are selling are selling quickly because they were priced well, while others languish on the market unsold because the listing price was too high and then sellers drop the price too slowly. In most of the Greater Boston area we are currently losing a half of a percent a month in market value. Many sellers get caught in chasing the market down.
I suggest pricing you house at the low end of fair market value or a few percent below. You need to be ahead of the slowing market, not trailing it. Many sellers are still pricing like they were 3 years ago, 5 -10 percent above fair market value. We are in a declining market and that strategy no longer works.
Personally, I would sit down with your agent and objectively review the market data. Price your house to get it sold in 30 days and review the market data and the feedback on your house weekly. Pricing your house for a moderately quick sale will ultimately net you more. Do not let your house stagnate or chase the market down.
Specifically, the satistics for Wenham for the last 6 months are (under agreement and sold):
Single Family Listings: 19
Average List Price: $655,258
Average Sale Price: $651,137
Average Market Time: 164.47
Then you have to decide how badly you need to sell. Ideally you'd do better in a year if you can wait.
Thank you for your question. I wish I knew where you were living?!
I work in Southern California and consistently homes that sell in the first 30 days of market time sell for closest to asking price. At 120 days they sell for about 93.6% of asking price. That last figure is probably AFTER they have lowered the price at least once.
So the truth is that you, as the seller, do not set the price. I don't, the Realtor. The market, or the buyer, sets the selling price (and,you agree, of course!).
So the list price is a tool to attract buyers. Buyers shop in price ranges. An over-priced home in a declining or flat market (which mostt, but now all, places are) is a recipe for failure. In this market pricing slightly belwo market is probably the best way to get the highest price.
In our market if we do not see at least 10-12 showings in the first 2-3 weeks, then we will adjust the price. Due to the number of homes on the market even with all the marketing we do, after a few weeks listings get "lost in the shuffle". Your mother said "you only have one chance to make a first impression" and she was rigtht~