Realtors have consistently used pricing as the primary mechanism to sell your home. Don't forget terms as a selling feature. Let me give you an example of how to offer a seller-carryback (and cash it out):
Your home is listed at $500,000 and you've dropped it twice from $550,000. You are getting nervous and your Realtor thinks that you to come down to $480,000 to move the house. You've already come down $50K.
Don't drop the price any farther! Try offering a seller-carried second mortgage at 12% for $100,000. You can sell that note as early as one day after COE (settlement). You may only get 80 cents on the dollar when you sell the note (that is only $20,000). If the home was fairly priced at $550,000, it might have made sense to offer terms before reducing the price.
Let's see how this would have worked with the first price reduction: $550,000 reduced to $530,000 with terms:
Buyer obtains a 70% first mortgage for $371,000 (that isn't too hard to get, even with lousy credit). You offer a $100,000 second mortgage at 12% and sell it for $80,000 the day after closing. You net $510,000. You open the property to people with recent bankruptcies and credit problems when you offer terms.
Seller-carrybacks significantly expand your market. You can advertise in the paper and attract many "terms" clients wanting to buy homes.
I will be happy to help you structure the sale of your home with a seller-carryback. I can fund the first mortgage with an institution, offer secondary brokerage advice for the private note (the seller-carryback) and insure you have a smooth transaction. Ask your Realtor to call me so I can explain how you can keep more money by offering seller-terms instead of continually dropping the price in this market.