By your home being on the market since February 2007, the comparable sold properties were probably sales dating as far back as February 2006.
Lending guidelines have changed significantly this year.
Currently most lenders require their appraisers to use comparable sold properties no older than 3 months.
In order to establish your current market value, ask your realtor to re-evaluate your property using comparable sold properties no older than the past 3 months.
If your property is in good condition, and shows uncluttered, clean and fresh, to get a contract and sale in reasonable time in this static or declining market, price your property AT VALUE.
Most sellers want to price at value + (room to negotiate)
There are buyers out there and they are and have been buying.
The buyers have much more inventory within their given parameters than they have in the past few years. They are taking their time shopping, seeing everything, and first hand learning values, and trying to find the best deal
When they see a property priced at value, that property stands out as a good deal and is typically the property chosen to make their offer.
Of course they will come in with an offer, that is only prudent. However in smart negotiating when the seller counters back to reasonable value, the buyer "justifies" (in their mind) the value of the counter, which most of the time results in a good value contract for that seller.
If a seller is upside down in the loans secured by their property, lease-option, lease-purchase, or rent until the market rebounds is a viable option.
You have received good advise to seek the guidance of an attorney.
Consider seeking the adviese of a local real estate attorney.
Best of luck in the disposition of your home... more