Do you want to get a bidding war going on your home, even in this slow market? Do you want to get multiple buyers, all competing against each other over your home, driving the price to tens of thousands above asking price? It can be done, you know. Is that what you want?
Are you sure? Fine. Here's what you do.
Drop your price 20-30%. You'll get a bidding war. An appraiser in this New York Times article on bidding wars has it right. In a market where most properties are still overpriced, correctly priced homes will attract the buyers. "Correctly priced," according to the article, means 20-30% less than last year. The article focuses on Manhattan apartments, but the same rings true for homes for sale in Westchester County and the surrounding areas.
In a market where there is still inventory which is overpriced, it isn't insane. If your home is worth 420 and you are still floating around at 499k hoping for a miracle, dropping the price to 400 might get all those lurkers out there who are watching properties online, waiting for a price drop, to get off their rear ends and make an offer. You just have to get your mind around the fact that your house is worth 420,000.
Banks do this all the time. REO foreclosures are priced at or below market value and they sell quickly. They have one thing going for them: the assett manager has no emotional connection to the house, unlike most sellers who still occupy their home. Divorce yourself from the emotions and look at the numbers. Even if you don't use the "bidding war" strategy, a price drop will help in almost all cases of a stale listing.