This is an interesting scenario in what happens between a FSBO and actual market adjustment.
This question is 6 years old. I did some research to see if I could learn a lesson.
What we have is a FSBO (for sale by owner) in Prescott, AZ with an owner willing to pay an agent 3% for bringing a buyer + $1,000 bonus. This is a pretty good deal if you're an agent with a buyer in pocket. Many home owners believe this is the best scenario to get them the most money. Offer the property for sale to everyone and pray they get a buyer. I see this more and more. The outcome however, may play out very, very different.
What appears to have happened.
The question was asked in Jun 2008, in August of 2008, the property was listed with an agent at $259,000. The property was adjusted to $249,000 one year later and expired (it never sold.)
One month later in September of 2009 it was listed with another agent at $224,000. Expired Feb, 2010.
Listed with the third agent in Feb 2010 for $199,000. ($90,000 less than originally asked) Again, it expired. Not sure if it ever sold FSBO after that.
It went on the market again Feb 2014 at $165,000 and is still on the market at $150,000.
The home is cute. Built in 1971. It's site built but in a neighborhood dominated by MFG homes. Homes were selling in the same neighborhood (built in 2004) for $209,000 in May of 2009. So how did we go from $289,000 to $150,000 with 3 expired listings totaling 787 DOM?
It's called the "market". Believe it or not, home-owners do not set the value of their home, the market does. What makes a home worth more than its competition? Age, Location, Care of the home, Upgrades, Views, Acreage, Proximity, and...Desirability.
Finding an agent who will market your home effectively is the key to selling it. However, if your price is too high, you won't sell it no matter what you offer as an incentive. Relying on your agent to give you the best advice is what will sell your home. If your home isn't selling, either the agent isn't marketing it, or it's priced too high. Take your pick.
The lesson an commitment I take from this: I market all my homes with expert photography (every home), aerial photography (if necessary), social media channels with professional graphics, local newspaper ads, postcards, flyers, media, Craigslist in 29 different cities, and global data feeds that I built myself to syndicate listings on every continent. I also list all my properties in the Phoenix MLS, giving my clients exposure to over 40,000 agents valley-wide. BUT!!! None of this matters if the house is over-priced.
Moral: Listen to your Realtor.