In any challenging market, initial steps to pricing are crucial.
The job of the listing agent is to collect data and carefully analyze the market data associated with the product.
The only data that should really be considered is the sold and closed data, and the days on market of similar properties.
Statistics can be culled from a multiple listing system and the city tax database, because that is where the “for sale by owner” closed data is also recorded.
One of the other keys is to look at the active data: What is the homeowner’s competition? Taking into consideration the other competing homes would give a clue to pricing.
If the listing agent has done homework with diligence and the price appears to be on par with the data, then the market conditions must be reanalyzed and the homeowner’s motivation again is explored.
A question for the listing agent to ask him/herself is, “Have I met the contractual obligation with the homeowner? Have I diligently marketed the property as it was laid out in our contract?”
If all seems to be on target, then the motivation of the homeowner will prevail as to whether the market price can be adjusted.
Re-examining the advertising and discussions with the homeowner can open different avenues of marketing.
Since this is marriage between listee and agent, common ground must be reached.
Managing the expectations of the homeowner is crucial at this juncture.
Some homeowners might decide to remove their house from the market because their motivation is not strong enough or fueled in reality.
Others will decided to adjust their price and be realistic about current conditions.