IMO you should ignore the 10/5% overpriced rule because it is purely arbitrary. What really matters is how you look compared to other actives, pendings and solds. In this market, if you ‘really’ want to sell, you’d better be significantly below the lowest comparable listing and pendings, and also well below any previous comps.

In your case, if there are 2-3 comparable homes listed at 249-255k and not selling it is clear that you are not the bottom of the barrel. In fact, you are priced 7% higher than your competition. If you truly need to sell, you should consider dropping well below those actives before they decide to go lower and cause you to continue chasing them down. There’s is hope that someone will consider you a great deal and bite.