In August of 2007, I posted an article about this. I went back today and re-read it. It's funny how views change (even my own) over time, isn't it? At that time, we had only had a handful of the properties we manage go into default. We would "play it by ear" on whether or not to cancel with the owners. 

We had (notice the past tense) an office in the Antelope Valley of SoCal. We were up to about 30 properties under management out there when the perfect storm of foreclosures hit. I am not going to write about the storm because we have enough reading material about that topic. What I will tell you is that within about 4 months half of them were well on their way to foreclosure. 

We found ourselves in a position where we had to make some decisions. Do we keep the office up there open? (We didn't). Do we hold onto the accounts? (We don't). What about the renters? Well, I believe in transparency when it comes to the relationships we have with our owners and with our residents. So, here is where we ended up: 

When a renter is living a property that we manage and the property goes into default (that is, an NOD has been filed which classifies it as pre-foreclosure), we cancel the agreement with the owner and give the tenant their full security deposit back. 

We really struggled coming to this decision. I mean we really struggled. After all, where did our agency lie? Well, what we did was have owners sign an addendum to the management agreement (which is the contract between us and the owner) stating that they understood our policy and agreed with it. We cut and pasted the section of the California Civil Code that details "rent-skimming". 

What we found was that the owners who were planning on going into default but wanted us to find a good resident for them decided not to list with us. It turned out to be a great decision. Our agency relationship with the owner was dissolved by mutual agreement, and we were free to pursue a relationship with the tenant. 

In my post from nearly two years ago, I said in the comments that this issue was going to be relevant to property managers for the next few years. It has been and continues to be. 

We believe that what it really came down to was "what's the RIGHT thing to do?". Once we had decided, it was just a matter of execution. 

So, I know it has been a long time since I have done an update. I sincerely apologize. The last few months have been very exciting. I will try to do a "catch-up" update. Several significant one-time and ongoing occurences have taken place recently that are significantly impacting the rental market here in Santa Clarita. Let's take a look at a few:

• Positive and Negative Propaganda Regarding the Resale and Rental Markets
• Extreme Volatility in Interest Rates, Terms, and Qualifications for Home Loans
• Difficulty in Obtaining Investor Loans for Residential Property
• Sharp Drop in Quality of Rental Applications
• Extreme Number of Foreclosures

Ok, that should keep us busy for a bit. Remember, I state some "facts" and some opinions. I put facts in quotes, because statistics are extremely susceptible to manipulation and are often cited as fact. I will try to deliver to you only relevant statistics and ones that I believe hold true. Remember, we are talking about Santa Clarita, CA in particular. It may be vastly different just a few miles away. (It is totally different in Lancaster/Palmdale, CA.) Let's break the above bullet points down even further:

"Positive and Negative Propaganda Regarding the Resale and Rental markets". This is referring to your garden variety newspaper, Yahoo!, Google, etc... "news". I love that they call it news. We all know what it is, so let's call it what it is. Sales. Take a moment to read some of these and then ask yourself, "What expertise does this writer have in the field they are writing about?". Probably little to none. They were probably hired because they know how to write, not because they know the rental market. This propaganda has driven a popular perception that the rental markets everywhere are going up at an alarming rate. Not true. We have seen a trend in Santa Clarita that rent prices are actually going sideways and sometimes even down a bit year over year from January 2007 to January 2008. THE RENTAL MARKET REMAINS STRONG IN SANTA CLARITA, BUT NOT AS STRONG AS THE POPULAR PERCEPTION.

"Extreme Volatility in Interest Rates, Terms, and Qualifications for Home Loans" AND "Difficulty in Obtaining Investor Loans for Residential Property". I am grouping these together because they are having a similar effect. Both types of home buyers - investors and those who intend to occupy the home - are having difficulty obtaining loans. Of course, this isn't new, but it is still sharply affecting the resale and rental markets. "BUT JOHN, SHOULDN'T THAT DRIVE THE RENTS UP?" Not necessarily. You have to take into account the number of sellers who are placing there homes for rent as an alternative to selling. The current rental inventory seems to be enough supply for the demand. But the flip-side is also true. Although there is a larger inventory overall, there are more renters overall. Right now, it seems to be in balance. Rents are not moving very much.

"Sharp Drop in Quality of Rental Applications". This one is something that it seems not a lot of people are thinking about. We are seeing a significant percentage of our applicants (We will see over 300 applications this year) with poor credit (sub 600) and mortgage defaults. We are telling more applicants that they are not approved than we have in the past. Where do they go to rent? They go to one of two likely places. 1) Homeowners who are trying the renting game on their own and don't know how to screen tenants properly or 2) apartments. This may be why the news media is reporting that rents are going up. Apartments can "spread the risk" and take lower quality applicants. This allows them to charge a higher rent. Typically the media will call apartment complexes to compile rental data. Just speculation, I haven't done the research.

"Extreme Number of Foreclosures". This is a big one. There are a lot of people moving these days. The supply is there, but the turnover is fast. The foreclosures are hitting from two sides. One is the owner/occupant who is losing their home. The other is the owner/investor who is losing the investment property. Both result in someone moving.

So, here is what we are seeing. The number of rentals is going up. The number of renters is going up. They currently seem balanced. The quality of applications is going down. Buyers are still struggling to buy. Investors are still struggling to buy. Foreclosure are up. Infalation is probably on the rise which means rates will probably go up. Resale prices are dropping. We are in a recession (debatedly).

I hope you enjoyed this. I really do not intend to sound negative. I think this market presents an unbelievable opportunity for those who are willing to swim upstream, against the flow. But this is not the place to discuss that. Perhaps I will do another post about that very issue. For now, I gotta get to work. There are lot of houses to be rented, applications to be processed, properties to be listed, and people to help. Let's get to it!

BELOW IS A COPY OF A MARKET UPDATE I RECENTLY SENT TO OUR CLIENTS:  

Dear Client,

            In response to a recent survey of 75 clients, I am going to give quarterly updates on the state of the residential resale and residential rental markets in Santa Clarita and the surrounding areas. These updates are simply my opinion of the current market based on my studies of the current and past market reports for this area. I promise to never "sugar coat" anything I say. I will shoot straight, the way I see it.

            As you may well know, the current resale market in Santa Clarita is in shambles. There are still a few optimistic reports trickling out, mostly from associations whose memberships stand to gain from a positive consumer attitude. Most reports are painting a "doom and gloom" picture, which, in my opinion, is not far from the truth. We have seen well over 10% depreciation, nearly across the board in the Santa Clarita market, since the beginning of 2007. The total depreciation since the beginning of 2006 is over 20% in some areas of Santa Clarita. (For instance, a Lower North Oaks home recently sold for $335,000.00. This same model sold for over $450,000.00 at the peak of the market. They were comparable in condition, location, etc...The home that sold for $335,000.00 was originally listed at $460,000.00. After being in escrow for $399,000.00, and $379,000.00, the owner took an offer of $335,000.00. This is not uncommon in many areas of Santa Clarita.)

            Why is this happening? You may have read reports that the mortgage market imploded, exploded, or any other "ploded" that may apply, or you may have read about the weakening of the dollar, the rise or fall of interest rates, overbuilding, or any other number of factors. My question is this: If any of those were the reason, than why are there areas in the U.S. where double-digit appreciation is still occurring? I believe that the reason the market is adjusting so drastically is that the gap between the monthly cost of owning a home and the monthly cost of renting a home was so large. That gap occurred for some of the reasons listed above. That gap is closing. In areas where that gap is very small or nonexistent, home values are climbing.

            When will the gap close? When will the market turn? No one knows for sure, we are all just guessing. There are many factors that can affect the market - rates, terms, loan restrictions, strength (or weakness) of the dollar, and a U.S. presidential election are just a few. My personal opinion is that in Santa Clarita we are going to level off quickly and then slowly adjust downward for another year or so before we see a real leveling of the market. I feel that it will be 3-5 years before we see appreciation, and then we will probably spike up for several years.

            The rental market has been strong in 2007. We are seeing a slowdown right now, which is probably caused by: 1) The holiday season and 2) The influx of rental homes. While there are many people looking to rent (because they can't - or don't want to - buy), there are a great many people who have been trying to sell their home and have not had success and are turning to leasing out their home as an alternative.

            I believe that the rental market will remain strong, but not quite what we have seen in 2007. 2007 saw very low vacancy rates and sharp rent increases in many areas. 2008 should bring slightly higher vacancy rates and slightly lower rent increases. Overall, however, it should be a very good rental market.

            Remember, this is my opinion for the Santa Clarita area only. The Antelope Valley is a much different picture with rent decreases, much higher foreclosure rates, and less immigration. Other parts of the country are seeing different things as well. Miami, for example, is seeing sharp depreciation in home values, and sharp decreases in rents, in many communities.  

            What does it all mean? I believe that this market is preparing to transfer huge amounts of wealth from one group of people to another. Many people who are watching the market are going to start buying property and either "flipping" or renting them. Many people will lose their homes while many people will "gain" more homes. Which side are you on? If you are interested in buying, please contact me (unless you were referred by a realtor, then contact the realtor who referred you!).

            I hope you enjoyed my snapshot of the current state of residential real estate in Santa Clarita. Feel free to let me know if you agree or disagree, and why. The easiest way is to e-mail me at john@rentwithclassic.com.

                                                                                                              Best Regards,

                                                                                                              John Evarts, CEO

KIVA.ORG is a great way to give. They have combined the elements of prosper.com with microfinance.

I am so excited about finding this website. After I decided to write a post about it, I did a quick search in AR to see if anyone else was posting about it. There was one guy. ART BLANCHET. He has written multiple posts about Kiva.org. Check it out. Thank you, Art, for writing your posts.

Here is how it works, in a nutshell: You pick a business you want to make an interest free loan to and, using any credit card via paypal, loan as little as $25 to that business. That business is "mentored" by one of many microfinance organizations who helps them manage their business and repay the loan. According to Yahoo!News, they have a 99% repayment rate. (Just so you know, that is UNBELIEVABLE!) They pay you back usually in around 6 months to a year. At that point, you can re-lend the money, or withdraw it.

When I first saw that you had to use paypal, I thought Wow! That has to get expensive. Turns out, paypal likes what the folks at Kiva.org are doing and PAYPAL DOESN'T CHARGE KIVA.ORG ANYTHING TO USE THEIR SERVICE! I was blown away. So, I dug a little to see who was partnering with Kiva.org. Here is what I found.

Something else, isn't it? I thought so, too. I first read about microfinance organizations several months ago in Fast Company. They were honoring companies who had found a way to profit and help the community. One of them was a microfinance organization. Then, shortly after, while at a Dodger game with JT, he mentioned wanting to get involved in microfinance. I didn't really dig too much after that night, until I read an article on Kiva.org and decided to explore a bit.

This kind of thinking, using the internet for good, connecting people in this way,

IS GOING TO CHANGE THE WORLD.

Kudos to Kiva.

The current collapse of the residential home loan industry is having a HUGE effect on the residential rental market in Santa Clarita, California.

I imagine that it is having the same effect in many parts of the country, but I am going to focus on the Santa Clarita Valley. The current state of the mortgage industry is this: THERE IS VERY LITTLE MONEY TO LOAN. I am going to give you my take on what is happening in the mortgage industry, and then what I think it is doing to the rental industry.

It is nearly universally accepted that the number of foreclosures taking place in the country today can be linked to irresponsible practices by mortgage brokers and underwriters across the country. The number of defaults on residential loans has made the resale (or secondary) market of loans a general fiasco. Most loan warehousers cannot sell there loans. When they cannot sell their loans, they have no new money to lend. That is how Countrywide ended up tapping their entire 11 billion dollar line of credit. I am not going to go into details. Suffice it to say that there is very little money to lend because the current loans cannot be sold because of the increasing number of defaults.

When there isn't enough money to lend, the banks become very selective in choosing borrowers for their money.

This means that people who one year ago would have qualified for a home can no longer qualify. The people who were waiting for the crash of the home prices are now seeing it, however, now that prices are down, they are finding that they cannot buy. These people create a very high-quality pool of renters. When you combine these people with the people who are losing their homes to short pays and foreclosures, and then combine that number with the normal pool of renters, you have a very good rental market - for the property owners.

The bottom line is this: RENTS CONTINUE TO RISE AND THE INVENTORY CONTINUES TO REMAIN LOW.

Although more and more sellers are turning to renting their homes as an alternative, the continually growing pool of renters keeps the inventory slim and homes that are priced correctly, show well, and have good location consistently rent in less that 30 days.

This is the strongest rental market I have seen in well over 3 years.

I DON'T REMEMBER HOW OLD I WAS WHEN I WAS INTRODUCED TO THESE MAGIC BEANS. But, I do know that I cannot survive one day without them. These little beans have some mysterious quality that enables me. I feel more powerful after I have them. My relationship with them is like a sick kind of co-dependent love affair. If I have them, I am happier, more pleasant to be around, more productive (it seems), and more likely to show kindness and graciousness to those I encounter.

If I don't have them, I am some kind of monster. I experience pain in my head, lethargy, frustration, hot flashes, and anger. Do you know these magical beans that I speak of? You can find them at nearly every street corner in metropolitan areas. They do exist in rural communities, but you may have to travel 3 or 4 blocks to find them. The pharmacists who handle them work in small shops that smell so strongly of the beans that if you have not had them for a time, you may feel faint from just the aroma. You are likely to encounter long lines at the magical bean shop. The people in line are generally not happy, talkative, or respectful. The people who have already ordered their beans and are waiting for their delivery grow anxious with each passing minute. If the beans are delivered in a different order than which the order was placed, you may hear angry words hurled at the pharmacists.

I become angry on Thanksgiving or Christmas when the bean store is closed. I have even found myself buying extra beans the day before these holidays and placing them in the refrigerator so that I can have them the next day. I become frustrated when I am on a road-trip and I can't find any beans in unfamiliar territory.

These beans are dangerous, in my opinion. If you are addicted to them, you will feel a pull everytime you pass that green circle with a lady in the middle. If you are addicted, you know what the green circle with the lady in the middle means. You can picture it your mind, you can taste your poisonous bean of choice, and your mouth is probably beginning to water. My beans come on ice with a bit of half-and-half added to mellow out the flavor just a touch. My wife's beans of choice come hot with steamed milk and dash of caramel added. It doesn't matter, the effect is the same.

I have met many people who also share my addiction to the magic beans. Many of you reading this may also be addicted. In fact, every morning on my way to the office, I see some of the same haggard-looking people with grumpy faces walking toward that shop like zombies drawn to flesh. I see some of the same people leaving the shop with a smile on their face and a spring in their step.

I have tried to rid myself of this addiction. Many times. The same thing always happens. The people who love me and have encouraged me to try and succeed at overcoming this vice end up begging me to start taking my beans again. I have become so miserable to be around, that they would rather have me addicted to these god-fosaken magic beans than try and live with me when I haven't had them. I have considered being admitted to some place that can help, but it doesn't matter where I go, the beans are there. I go to the hospital, they are in the lobby. I go to grocery store, they are at the entrance, waiting for me. I go to a hotel, they are in the lobby. I go to the airport, and there are multiple bean shops!

I have given up. I have resigned myself to a life of bean addiction.

I JOINED PROSPER.COM SEVERAL MONTHS AGO. I first read about it in Fast Company Magazine. After I read the article, I went to the website and poked around. I was very intrigued. It is a "peer-to-peer" lending website. One magazine described it as "banking meets e-bay". You can join as a "lender" or "borrower". Or both. If you are a lender, you bid on loans that are "listed" by borrowers. You can bid in any amount with the minimum being $50.00.

Ok, here is an example: Someone wants $13,000.00 to pay off high-rate credit cards. The lenders get to review the loan, check the credit report stats (you don't get to see the actual report, just a summary), income, debt, etc... The site calculates the DTI  (debt-to-income) and red flags the higher DTIs. The lenders can review the "listing", which is the borrower's reason for wanting the loan, justification for the loan, etc... The lenders can then ask questions of the borrower. After reviewing the loan, you can then bid. If the credit score is too low, you will be given a warning that you have to acknowledge before you bid.

The borrowers offer an interest rate. Let's say 19.99%. (All loans are 3 year loans which makes a 20% interest rate for 3 years very attractive to someone paying 20% on a 99 year payment plan.) The lenders can bid $50 and any interest rate up to 19.99%. Once the loan is fully funded, it can be "bid down". Example, on the above laon, I bid $50 at 15%. My bid will automatically start at 19.99%. If it gets "bid down", my bid will automatically bid down until the rate goes below 15%. At that point, I have been "outbid" and I get an e-mail letting me know.

Anyway, I bounced the idea off a few friends and got pretty much the same response: "Sounds risky". Of course it sounds risky. But, as a wise man once told me, "knowledge reduces risk". I knew that I had some of the knowledge. I look at credit reports, income, employment history, rental history, etc... all day long and make decisions on whether to rent homes to people. I could just apply that knowledge to this website and reduce the risk.

I thought about it for awhile, and then joined as a lender. I have 10 loans made for a total of $550.00. I have been at it for about 3 months, all of my borrowers are current (actually none have even paid late, yet), my average interest rate is 18.24%, and I have a net return of just over $18.00 on $500 invested. Not bad. (I have $550 in loans because as soon as I had received $50 in payments, which were principal and interest, I lent it back out.)

Sound interesting? I thought so, too. There is a small time investment required. You need to research the site a bit, learn about groups, learn about the risk scoring model, etc...Feel free to e-mail me questions, or better yet, ask them in the comments so everyone can benefit.

Also, my story is one with no tears shed (yet). If you have shed a tear over a prosper deal gone bad, share it here. I have nothing but good things to say. In my opinion, based on my personal experience with the site, you can earn great interest rates fairly easily, and it's a lot of fun!

I am placing two buttons below. One is to borrow and one is to lend. Please use these buttons to join. (Yes, there are referral bonuses.)

THIS POST IS AN ATTEMPT TO ANSWER THE AGE OLD QUESTION: "SHOULD I BUY?" Of course, we are talking about real estate. I was first introduced to a concept called Dollar Cost Averaging when I was just a wee lad learning whether to buy stocks. It was taught to me by a financial planner who also taught me the Rule of 72.

Let's first look at Dollar Cost Averaging. Dollar cost averaging refers to a financial principle that shows how to spread your earnings over time in an attempt to look at true earnings. It was taught to me using an analogy of a cow farmer, so that is how I will present it to you.

Let's say that you are a cow farmer. MMMMMmmmmmmmmmmm, steak. Wait, different post. Ok, back to cow farming. You get into the cow market when cows cost $100 each. You commit to spending $100 a month on cows. The first month, you buy 1 cow. WooooHoooo!

The second month, the cow market tanks. I mean people-jumping-out-of-hay-silos tanks. The price of cows is now at $50. You get a bit nervous, feeling that you lost $50 on your first cow. But, you are a person of integrity. Your word, even to yourself, is your word. You spend $100 and buy 2 cows. You now own a total of 3 cows. You have paid a grand total of $200 and your cows are worth $150. Your parents tell you to sell. (Photo courtesy of Geerts-Walaszek Family's photos)

The third month, all hell breaks loose. Cows are shooting each other. Foreigners are buying horse bonds and its keeping the cow market down. Cows are now worth only $25 each. The chicken farmers were bought by Google and everyone is eating chicken. After some serious soul-searching, you decide to go one more month. You spend $100 and buy 4 nearly worthless cows. You bought cows that you couldn't sell if you wanted to. Your friends all sold their cows, your family sold their cows, and they are all laughing at you. Ha ha.

The fourth month, something happens. The Chinese got scared and quit buying horse bonds. They started opening McDonalds in India where the religions all decided that beef was ok. The market is on its way up! $50 a cow! You buy 2 for $100.

The fifth month, you are finally back where you started. The government decided that Google shouldn't own chicken farms. That would make them a monopoly. (Bill Gates has been lobbying). You stuck it out in a market that saw you buy at the top of the market, saw your cows go down in value, and over time rebounded to even. You spend your $100 and buy 1 cow, because that is what they are now worth. But, how did you do over all? Let's see.

So, you spent a total of $500 and your cows are now worth $1000.00!!! Was it ever a bad time to buy? You decide. Keep in mind, no one knew what the cow market was going to do.

Ok, now that you are ready to run out and buy cows, let's shift gears. The rule of 72. It's just a nifty trick to help you figure your Rate of Return. Here is the formula:

72 divided by interest rate equals the number of years to double your money (if you let it ride).

Or, 72/%=years to double.

You can work it backwards:

72 divided by years to double equals interest rate.

Or, 72/years to double = %

Nifty, eh? I heard that Einstein thought this one up. So here is what you can now do. Buy some houses, track the appreciation, and in the tax savings and rents, compare from every angle using the rule of 72 and then.......you will want to buy more houses.

OK, I HAVE REFRAINED FROM WRITING THIS POST, BUT I CAN'T HOLD OUT ANY LONGER. I am a huge Deadliest Catch fan. I have seen every episode, every After the Catch episode, and the Special: Behind the Scenes. I have visited the F/V Northwestern website, the Rollo website, and the Cornelia Marie website. I have emailed the guys of the F/V Northwestern. I even purchased a poster of the Northwestern and am contemplating decorating our entire office in crab fishing décor.

DOES THAT MAKE ME A NERD? A DORK? OBSESSED? Maybe, but who cares? Not me. I LOVE these guys. Somehow, I became totally infatuated with their way of life, their dedication to the task at hand, their sheer toughness and sense of adventure. And I cheer at the end of every fishing season when they show how much the deckhands made. In fact, I have even cried when guys died, or when Matt Bradley read a letter sent to him by a fan encouraging him in his battle against addiction.

YOU SEE, WHEN I NEED A BOOST OF CONFIDENCE, A "PICK YOURSELF UP, BUM!", OR A GENERAL KICK IN THE A$$, I can just look at a picture of what these guys do, and tell myself - "You Think YOUR Job is Tough? Gimme a break!" My job is a cakewalk compared to what these guys do every day (and night).

I mean, what do I do? I list properties for sale and rent, find renters and buyers and negotiate contracts. I manage 4 people who list, sell, rent and manage residential property. From time to time, I have to field an exceptionally angry owner or renter. I do some paperwork and accounting. What's so hard about that?

Granted, it's a very specialized line of work. There are good reasons why people pay us to manage their investment property. Sometimes we deal with people who won't pay their rent and we have to get the authorities involved and evict them. Sometimes we have to deal with people suing us or the owners or the tenants. Sometimes houses burn or flood or get damaged in windstorms. Sometimes people die in the house.

BUT COMPARED TO 40 FOOT WAVES, 100 MILE AN HOUR WINDS, 38 DEGREE WATER THAT CAN KILL YOU 4 MINUTES? My job is easy. Here are some cool links with descriptions. And, of course, some killer pics. Enjoy.

The official Discovery Channel Website - Great place to find out about all of the vessels, play the game, purchase DVDs.

The great F/V Northwestern - My all-time favorite crew. Meet the guys, see some pics, buy some stuff. You can even become an official "Hansenette".

The best Deadliest Catch pics I've seen - Really, really, good pics. Taken by crewmember Corey of the F/V Rollo. The only problem is that the site doesn't work with IE7. Bummer. I included some pics from this site below for your viewing pleasure. Corey's work has been on display at some major galleries.

The F/V Cornelia Marie - A great family boat. The dad is Cap'n and his two boys are deckhands. The site is new, but is going to get better.

Cool Pics:

PLEASE FEEL FREE TO ADD YOUR OWN LINKS, AND PICS!

Several times a day, my phone rings and the caller on the other end is a seller with their home currently on the market. Why do these people choose to call me? Well, I have a unique view on the real estate market. You see, my primary occupation is residential real estate management, but I still practice listings and sales. I have a sister company that strictly practices residential listings and sales.

My primary occupation as a real estate manager is what provides me with a unique view. Yes, many real estate agents talk about renting a home versus selling it, but many of them also find themselves in a quandary. "Do I sabotage my listing and encourage my seller to rent? Do I try to manage it for them so I can get the listing down the road? Do I simply push for another price reduction?" Do you see how this can cause a conflict of interests? There is no ill will, just a limited understanding of the options.

When I get the chance to talk to sellers who have found themselves "stuck" in this market, what we do is discuss all of the options that I am familiar with. If there is an option that I am not familiar with, I will recommend bringing in another professional who is familiar, e.g. tax attorney or certified financial planner. Here are the options that we normally discuss:

• Lowering the price aggressively and selling
• Renting for a short-term and then selling
• Renting for long-term
• Re-financing
• Owner carry-back financing or Lease-Options
• Not selling at all

Now, what we are trying to accomplish in our discussion is "what is the best decision for the client?". You see, when you find yourself "stuck" in a situation, sometimes the best thing you can do is get some fresh advice from someone who is not intimately involved. Have you ever found yourself in a disagreement with someone close to you, and you went outside the normal circle for advice? Sometimes, it just makes sense. Here are the steps I typically use to help someone decide the right solution:

1. What is the goal(s) you are trying to accomplish by selling?
2. Can this goal(s) be accomplished by doing something other than selling? (If the answer is no, then the solution is probably "lower the price aggressively")
3. If the goal(s) cannot be accomplished by any of the options presented, then can we adjust the goal(s)? (Even temporarily)
4. Do we need to bring in another professional for consultation?

Usually, by the time we have answered the above questions, we can start narrowing down the list of possible solutions and the discussion is progressing nicely. We keep the dialogue open and continue. Sometimes, time off from the discussion is required in order to "mull it over", or inform a spouse, or bring in another professional. However, the wheels are turning and a solution is much closer to being discovered.

Remember, the market is fluid, changing, dropping, and rising. In order to succeed in the market, you have to be willing to be flexible. Think outside the box. Get a fresh perspective. Bring in the appropriate professionals. List all the possible options, and then systematically eliminate the options until you are left the best options. Then, aggressively pursue them.

(photo of phones courtesy of typester at flickr and photo of jeep courtesy of tooms at flickr)