There are a LOT of homes on the market in the $300k - $400k price range, and I have recently been showing a lot of them to buyers.  I will then have follow up calls from the Realtors representing the sellers, wondering how things went.  Some of the houses are priced more competitively than others, and those sellers (and their Realtors) are often confused and frustrated when my buyer clients aren't ready to make an offer on their home.

Why aren't buyers necessarily jumping at the "best-priced" house on the block?  The main conclusion I have come to is that the layout of the house seems to be a significant trump card above all other factors. 

• A house can offer a compelling cost per square foot, be in immaculate condition, on a beautiful lot --- but if a family spends lots of time preparing for and enjoying family meals --- and the house has a small kitchen and small dining room --- the house probably won't work.
• A couple looking for a three bedroom house can find one in a great neighborhood, with many compelling features, but if the main living spaces are chopped up, and the couple wants an open and airy feel -- no go.
• A house might be priced at the lowest possible price in a neighborhood, and might boast more square footage than all of the neighboring homes --- but if the prospective buyers are looking for privacy in the backyard --- and the house is on a bare lot with no trees and an immediate view of all close neighbors --- the buyers will keep on looking.

The good news here is that even though there are a LOT of homes on the market, YOUR home might offer the perfect layout for a home buyer that has been waiting in the wings patiently viewing each new listing as it comes on the market.

The bad news is that if the layout or floor plan of your house is unpalatable to most buyers, your home may languish on the market.

Back in 2002-2006, just about any home would sell (regardless of the layout) because there were very few choices in homes.  Now that buyers have so many choices, they are often quite specific in wanting a layout in a home that works well for their day to day needs.