Drop It Like It's Hot!

Too often sellers want to make a price adjustment that's simply going to have no impact.  If you refused to buy a Snickers bar because it was $1.99.  Would you all of a sudden grab one up if they dropped it to $1.95?  Not likely.  For a buck and a half, how could you refuse, though, right?  I mean, the caramel alone is worth $.75.  Add in the nuts, chocolate and...  Sorry.  I like Snickers.  The point is, if the decision has been made to drop the price, "drop it like it's hot"!  The purpose of a price drop is to accomplish one of two goals.  1.  Bring in new buyers and 2. Get previously interested buyers to move forward with an offer.  If you drop the price less than 5%, you're going to accomplish neither.  It typically takes a 10% drop in price to really have any impact.
Here is a general rule of thumb I like to use if there are no other glaring issues with the marketing strategy or the property itself.  If you've been on the market 90 days without a showing, you're likely overpriced at least 15% and possibly 20%.  Once you've had six showings without an offer, you can assume you're about 10% overpriced.
I also totally disagree with a philosophy of pricing high to build in some negotiating room.  If you're well priced, you're going to get more showings, more interested parties and, most likely, a decent offer.  Even if an offer comes in low, there's nothing that says you have to take it.  If you can't come to terms, so be it.  At least you had the activity and most buyers will circle around once they've identified the right property and do what it takes to make it theirs.