It is unclear to me if you are asking this question as a homeowner second guessing your agent or if you are a home buyer with acute interest in a home you have interest in. I will assume you are the home owner.
How a price reduction is managed to leverage all the resources available depends first on if this was a strategic reduction or a compelled. The next factor is directly related to your agents resources and the structure of the strategy in place.
Your agent may have as many of four cloaked markets where communicating a price reduction can have significant influence. Add those markets to the resources of the MLS and tertiary home search resources such as ListingBook and the audience receiveing this communication can be vast.
Please be aware, NO AMOUNT OF ADVERTISING WILL SELL A HOME PRICED OUTSIDE THE BUYER VALUE BRACKET. This is a discussion you had with your agent when your home was listed. If you are 30% high and the initial response was absolute silence, reducing the price 5% WILL NOT change the result.
A meet up with your agent may prove essential. Selling a home at top price requires a strategy, not advertising. Don't be distracted by the shiny stuff. If you goal is really to sell your home, go with a strategy that makes sense, aligns with what you know and is compliant with your agents resources.
In my enterprise, the seller will be unable to observe the important 'price change' communication to the Class A, target buyer. The results, however, of a strategic adjustment, will be undeniable.
PS: If you are a buyer. have your agent communicate your interest to the listing agent. You may discover, that a serious buyer who actually makes an offer just might get what they want. Too often, a mug-womp buyer, by waiting, creates the bidding environment they wanted to avoid. If you have interest, make an offer.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL