Price reduction strategy - help please

[Walt Payne]

I have a $399K home for sale. Several agents have told me that it is a good price, but because it has an in-law suite it is going to be the right house for just a limited number of people. I would like to get a chunk of money out to use for down payments on investment properties. Since it has not had a showing in a month of being listed, I accept and understand that a price reduction is in order. But do I drop to my lowest now (would that appear desperate?) or should I do fairly quick incremental drops? What strategy is most likely to a) get me a quick sale and b) get me the most money possible without waiting too long.

I am also thinking of accepting a seller financing deal for over 30% down and the right buyer, but need to look into legal and tax issues first.