Well, in the grand scheme of things, I'm not certain that 5k will make a big difference to most buyers. Unless dropping your price will open up a new set of potential customers (say if it drops below most searchable thresholds of 25k increments), I don't see the point. Even if it is searchable in MLS, I'm not sure how people consider looking at a house fsbo. You may get some people that figure that since it is fsbo they can really get the house much lower than asking price, you also could get some whom have realtors who may be reluctant to show fsbo's also.
If the school district is a concern, probably dropping something 5k isn't going to sway a buyer. People want their children to go to a good school (naturally), and are willing to pay a premium for it. Likewise, they will expect a great deal if the district isn't the best. If you are still competing with the new construction, and the less desirable school district, your only recourse is price. That you can change. Those other things you can't. If there is great urgency to sell the house, you may have no other option than to take a big loss. If you still have time, I would keep it at the price. No one is probably looking to move right now with the school year almost over. Once the summer hits there may be more action with people looking to have a house by the fall.

There really is no such thing as FSBO on the MLS. It is a realtor site. Changing from a full service realtor to a flat fee (no service realtor) isn't going to increase traffic. The best you can hope for is that your realtor was essentially doing nothing to market your house and the no service option will do just as good.

As for the price drop, it really depends on the current price. If it is a million dollar house, a 5k drop isn't going to do much. If it is a 80k house, a 5k drop is pretty huge.

I can tell you as a recent homebuyer that when I saw a home advertised fsbo I would generally avoid it. To me, these just scream "I AM GREEDY AND DO NOT WANT TO PAY A REALTOR." and "I AM NOT REALLY SERIOUS YET ABOUT SELLING THIS HOUSE. Then I would envision myself having to go out and find an attorney to deal with their attorney (not sure if that's really how it works) go through the house with the sellers and then haggle with them face to face --a big yuck factor for me.

I think you're considering a FSBO for an appealing reason--to be able to lower the price of your house and appeal to more buyers. Unfortunately, I don't think that's the case with many FSBO's. I have to agree with deanie1's comment.

I stopped touring FSBO homes because inevitably I got stuck wasting time, a polite smile pasted on my face, after determining two minutes into the tour that the house was unsuitable. To an agent I could say right away, "let's not waste time" but I didn't feel comfortable saying that to a homeowner.

My personal experience has been that a really good agent can be a huge benefit when trying to sell in this sort of market.

Our agent got our house sold quickly in a reasonably good market. She also got my friend's house sold for a fair price in a couple of months in a really bad market (my friend had to move out of state for a new job after being laid-off). My friend was very relieved since she didn't have to bring money to the table and actually came out slightly ahead.

In both cases, our agent found the buyer. She is the hardest working agent I have ever dealt with and more than earns her commission.

We haven't had one agent bring a person through in two months. The only people that have came were from open houses. We are even offering an exta percent to agents until the end of May. We could drop the price another 10,000 if we didn't use a realtor.

If you haven't had a scheduled showing in 2 months, your price is too high for the market.

I'm sorry.

If there are no showings, it's not the school. It's not the carpet. It's not the house pics. It's not the landscaping. It's not some nebulous fixable "thing" that you can do anything about.

It's the price.

Period.

Drop it to a realistic market price and you will get showings. Drop it to slightly below realistic market price and you will get offers. Drop it to well below market price and you will get a bidding war.

People haven't stopped buying houses. People have just stopped buying over priced houses. Yours is an over priced house. 5K won't do it, or you'd have had offers. 25K might be closer to the mark.

If you need to sell, then drop your price and sell your house. Or keep chasing the market down and carrying the monthly cost of it all. If you don't need to sell, then pull it off the market and wait the 3-7 years that it will take for it to reach your target price.

Some "tough love" on this post---I think it's on the mark.

I'm sorry, I have to agree with all the comments about FSBO. Seeing it is a big turn-off.

And in my neck of the woods, they're usually done by the sort of person who also does "cree-8-tive" home improvements (i.e., no professional expertise or reference to code).