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I think Alan May has come up with one of the most informative explanations of why its (sometimes) necessary to drop the listing price of a home on the market --- that I've heard in a long time.
I'm going to link you to the blog of this Coldwell Banker, Evanston, Illinois Realtor titled: "Your Home is A Commodity"
While his explanation may not be directly applicable to your particular property --- only you know all the facts --- I think you'll agree his analogy is a very good one; and well worth the read ....and some subsequent pondering time.
Judith, The Floor Plan Lady