It happens.  It depends on how unique the property may be.  The price may be correct but there may be a much smaller buyer's pool so it just might take longer, if the Sellers have the luxury of time.

When there needs to be a price adjustment, we just need to realize the market is not supporting the price.  It is a fluid thing.  Recent sales are history and you need to keep your eye on the competition, if there is any. 

As Susan Emo noted, sometimes the price may be right on paper, but the marketplace is a very fluid & fickle arena.  A wide variety of factors can have an effect on traffic for a property...and its appeal to buyers within its competition. Perhaps the price band is saturated with available properties, maybe the curb appeal of the subject property isn't quite up to similar competing properties; could be that the neighboring properties are affecting perception of this one...the list goes on & on.

When a situation like this comes up, I have a conversation with my seller about their need to sell vs getting a certain price. When calculating an initial price point, it is important to emphasize that this is the full "retail" value, not what it will necessarily sell for. Buyers shop around - how many times have you seen something like a TV that  you want at one store & see the same or similar model for less at a competing store? Just because it is worth one price, and the store has it priced at that level doesn't mean that buyers will pay that price if available elsewhere for less...or with other incentives that increase perceived value.

We do addendums at listing that gives us automatic prices drops at intervals.

I hate when that happens...I just be honest and say I wa wrong...so let's fix it.

I  preface that with..."I believe this price to be a good current market price...but...I do not have a crystal ball and the market could be lower.

That helps pave the way to a reduction without looking so stupid in the eyes of the seller.

Becky - First off, I never set the list price for any of my home sellers. I present information to them in order for them to make an educated decision on what price they want to list their home at.

If it doesn't sell at that price, and we are considering a drop, there are lots of things that might explain why, and I would review everything I could with the seller.

It may be that the property itself has something wrong with it; the floor plan, a specific room, color, or type of flooring, and the list could go on an on. It could also be a change in the market, or summer may be ending and all of a sudden nobody is buying due to the seasonal change. It could be the actual location or condition of the home. I could think of a ton of reasons why a home may not be selling for the initial list price.

YOU don't set the price the market does.  If it doesn't sell, the market is telling you something.

Based on the Market, if it needs to be reduced, I would have a valid justification of why. It's not always what you say, it's how you say it. Be sensitive to your Client by all means, the home most likely has some sentimental value to it also, but sentiment is not for sale. Choice your words wisely, and work with them.

I never set the price, the owner does. Usually I make an informed recommendation backed by market data. Whenever discussing price I educate the client about the necessity to allow for well timed reductions if there is no activity or other indications that the market isn't responding at the list price.

its like anything else..we test and tweak until we arrive. Results say when

Similar to what Bill does.

I show them comps for the area and also explain we do not know what else may come on the market, and when something currently listed sells, that price becomes a comp for their home's value.  I get buy-in from a seller based on comps and condition.  Also it is important to run current comps.  I set up my sellers on a search for comparable homes so they see for themselves what is coming the market and selling each day.

I usually pull recent solds and state the market has dipped.  

When you choose the price of your home three things can happen:

1)  you get lots of showings and you receive an offer you can accept.  This is a good thing - a very good thing.  Yeah!

2)  you get lots of showings but there is no offer and there are competing properties receiving offers -- you may be "selling" those other properties.   What is wrong?  How can the situation be corrected? 

3)  you get no showings and obviously no offers.   We missed an opportunity.   Real estate is always changing and how do you want to proceed?

I do not set the price for client listings.  The client is responsible for setting the price.  Appropriate discussions are held along with providing relevant support if a price drop is being considered.

Looks like you got some very good advice here Becky, including that advice from the man in the green jacket from down the road from you.

I do a new CMA every three weeks for listings.  It's something I've always been required to do for REO properties and private sellers like it as well.  Value has always been a moving target.

The price is a unified decision of the informed homeowner that is the catalyst to getting the best possible response from the buying public.

Since each seller's real cause for selling differs, so does the role of pricing.

A price reduction is NEVER a surprise to the home owner but is understood as an available tool to manipulate the time line.

When the perception that a price adjustment would be beneficial, I first ask how the homeowner likes the responses, if any, they are currently getting. I work from that understanding.

If you are sure its the price, then comps are the way to start. I make the price reduction presentation as professional as my original listing presentation with all the data to support it. Sometimes the clients motivation to sell (or lack of) will have the property sit. Other market factors such as number of buyers in that area and average market time might be your issue. Best of Luck to you!

Becky LaMont Comps are an indicator for what properties have recently sold. Everything from condition, supply and demand, etc. can change and impact price. Run another CMA to justify a reduction in price.

If you did your research correctly it should sell. Every market is different and times of the year sometimes dictate how soon or long you close. You would need to take those factors into consideration

First mistake  - YOU the real estate licensee should NEVER set the price for anything.

i assume you mean doesnt "see..l"  not see? i would explain it isnt an exact science and you got this particular formula wrong, and how long is doesnt sell... and how MANY showings, perhaps it isnt the price ( i know..its always the price) but perhaps other factors have entered into it