Looking ahead to a strong close for my Real Estate Team we have to look back to see where we have been to see where we are headed.
With only a few days left in the 3rd quarter of 2009 my team and I still have three escrows we expect to close before the end of the quarter. The numbers I am looking at now, do not include these last few transactions.
DAYS ON MARKET (DOM)
I have changed the way I post sales to the MLS. In 2008 I was motivated to record the lowest possible number of days on market, as possible. I did pretty good averaging just over 7 days for the entire year with close to 100 closed transactions.
This year I decided to forgo the bragging rights of a low DOM and maximize the marketing exposure my listings receive on the Internet by not reporting them as PENDING until the property is actually in escrow and escrow has received the buyers Ernest Money Deposit (EMD). This strategy has been benificial.
There are two big advantages here. First, REALTOR.Com and other Internet marketing sites that are populated directly from the MLS will continue to show my inventory for sale which will continue to fill my email box and make my phone ring. His is, after all, the backbone of every marketing strategy.
The second advantage to prolonging the inevitable is that deals fall apart and regardless of the status of the documents or the verbal words of the parties, until there is consideration from the buyer - there is no deal. So, to protect my sellers, I continue to aggressively market every home for sale that I am entrusted with.
As a result of this major shift, my average DOM for my first three quarters of 2009 now records at just under 28 DOM.
LIST PRICE to SOLD PRICE RATIO (LP/SP)
The next number that I pay very close attention to is the LP/SP ratio. This is a simple number that I use to analyze the market as a whole. I break this ratio down in several ways...I like to look at the bank owned REOs and then the Short Sales as two completely different reports. It should be no surprise then the REO segment of the market is hovering around 100% List Price to Sold Price while the Short Sales are actually over 110%.
What this means is that the banks are asking very close to what they age getting for their listings while when negotiating a short sale the same banks are going back to the buyer and listing agent and demanding more money.
Since my inventory in 2009 has been exclusively bank owned REOs, my average LP/SP ratio is right where it belongs at 100.4%
YEAR END GOALS
The sad news is I am not where I want to be towards my 2009 year end goal. 4th Quarter is always the slowest quarter of the year in the local real estate market and right now my production numbers are just under 70% of my year end projections.
I am writing the year off as a loss - absolutely not - I'm still having my best year ever in real estate and if the banks open the flood gates and start releasing some fresh inventory, now that the California Foreclosure Moratorium finally expired on 9/15, I can still make it.
Time to start looking at 2010 and figure out how to make that even better...Press on...
Until Next Time, Have a Blessed Day,
John Occhi, Hemet CA REALTOR®
This blog and the contents written here is the intellectual property of John Occhi, Hemet - San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.
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