I'm seeing listings are lasting longer and longer on the market and prices have been decreasing month over month for the last 3 months more dramatically. (Market Action) Sellers are coming around to the fact that Realtors have to work harder and harder to get the listings sold. I think Realtors need to take the time to educate the sellers that it is going to take a great deal of effort in marketing and promotion of the home in this kind of market to get the home sold. More hours of promoting the home in the ways buyers are searching for a home. Thus, reducing the fees for listing in a market such as this is not a good idea. Don't undercut yourself; keep those listing fees up around 6 to 7% and take the time to promote yourself, showing you are worth the work. Because you are!! (Advise to the collective Realtor community) If you are a Realtor of integrity and hard work ethic you will be putting in many hours marketing your listings. That is hours of time to find places that will attract buyers, keeping a close eye on the market, doing comparisons frequently, generating interest in the neighborhood to get neighbors to work for you talking up the listing to their friends and family who might want to move in (giving away some of my secrets to all my competitors) Glad to!! ..At the end of the transaction you should be paid for all that work. Discount brokers are doing a disservice to their clients because the services (at least the many exclusive services I provide) are not there. Any seller who will settle for just having their listing posted in the RMLS in a market like this is crazy!! (Want me to tell you what I really think?) :)
Additionally, keeping track of market data surrounding your listings is crucial- I personally do a CMA every 3 weeks in preparation of any necessary price adjustments. If sellers are not willing to take a very proactive approach to getting their home sold a listing agent needs to be very frank with them, but with gentle persuasion and understanding of their plight, to help them realize a list price needs to keep up with the what the buyer pool is willing to pay. (and only seeing the data will change their minds). That takes work on the L.A. part. Weekly reporting of some sort to your seller is also so important. Communication about what you've done that week on their behalf will assure them you are making every effort.
There is a chance the radius around the listing shows the price is right, even tho it's sitting for quite some time. It is usually in the $350K+ bracket. That's when patience and a lot of marketing comes into play. Some price ranges are just harder than others. I find its a tricky market in the higher price ranges because buyers are fearful of losing value.
Buyers need to be agressive with negotiations and not be afraid to make those offers. The rates are good; the inventory is great! They don't need pushy agents though- they need agents with tact and assertiveness who will work hard to find those homes that would be good for their individual needs. Get offers written and in front of the sellers. A hard copy with sigs and earnest money check will speak loudly. (my humble opinion)
As reported by the RMLS here are the stats for overall listing and closed data.
Comparing the fourth quarter of
2008 with that of 2007, new listings fell
20.3% (8,326 v. 10,450*). Closed sales,
on the other hand, dropped 32.1%
(3,598 v. 5,298) and pending sales fell
35.8% (3,061 v. 4,766).
Comparing market activity in 2008
with 2007, new listings decreased
8.7%. Pending sales dropped 30.8%
and closed sales fell 32.1%.
At $6.3 billion this year, total sales
volume dropped 35% from 2007â€™s $9.7
Thanks for asking the question!
June Lizotte, Real Estate Broker
Providing REAL Service
Prudential NW Properties
6400 SE Lake Rd., Suite 200
Portland, OR 97222