As REALTORs we often say the most important factors in the sale of a home are condition, location, and price. I would also add publicity. However, price is the most important since it is determined by the other three items, not the other way around. I used to teach elementary students the concept of cause and effect. A cause can create an effect, but an effect cannot create the cause. The way I look at it, the price is the effect of the condition, location, and publicity which are the causes. (Notice I did not include your neighbor's opinion as a cause).
As with the tripod above, location, condition, and publicity act as legs or supports that effect the price. If you try to reverse it the price does not change the condition or location. It cannot. Even the publicity is relatively unaffected by the price. You may do more ads for an expensive property, but sometimes the white elephant actually needs more advertising to get it sold. Yet if you paint your house you can cause the price to rise. If you could magically move your home to a more desireable area the price could also change. Again CAUSE = EFFECT not EFFECT = Cause
If I had an old chicken house next to a nuclear waste dump, I could sell it if were priced correctly based on the effects of the three causes. I could even sell our proverbial Florida swampland if the price were correct for swampland. On the other hand, if I had a palace to sell and it was over priced based on its condition and location, it would probably languish on the market.
In the end, if your home is priced correctly based on the condition, location, and good publicity, it should sell in a reasonable amount of time for a fair price. If, however, the location leg of the tripod does not support the price you will have problems. If the condition leg of the tripod comes up short, the same will occur. Not enough advertising? Ditto.
It is unlikely you can change the location of your home. So, if you can do nothing that is cost-effective to improve the condition of your home, and your agent is advertising it properly, and yet your home is still not selling, the only variant that you can control and make more attractive is the price.
I currently know of a beautiful home in a great location. I have advertised it on 18 websites, in 2 real estate magazines, in the Tampa Tribune, and held an open house. Everyone that sees it loves it. There is nothing the owners or I can do to improve the home. We cannot move it, we cannot make it any more beautiful than it is, and short of renting the Goodyear Blimp, I cannot advertise it more than I am. However, the market is telling us what we must do, reduce the price.
It is kind of like the old Clinton slogan when he first ran "It's the economy stupid". In real estate it often is "It's the price...." Well, you know how it ends.
So if your home has been on the market for months with few or no visitors, and even fewer offers, you sincerely need to consider improving one of the legs of your "tripod" or rethink your pricing. Homes are selling here every day, but the price has to be correct. So listen carefully to the advice that your REALTOR gives you. He or she is there to help you.
For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: firstname.lastname@example.org
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida