The Sky Isn't Falling, at least not in Eugene Oregon

Well as another deal goes to escrow, I can't help but wonder why other agents are having such a difficult time adapting to a changing market.

We have seen our share of difficult listings this year, but we are still getting decent offers. I think one of the main issues agents are having is their inability to communicate to the seller's current market conditions effectively.

We use a Top Producer regimen to keep all of our sellers posted as to the current comps so that they have a clear idea of what they are competing against. If they don't want to get real about price, then we are going to end up terminating or never entering into that listing. If you bought your house last year and financed in your closing costs you are not going to sell your home for a profit this year! We won't be telling you just what you want to hear to get your listing just to brow beat you later for price reductions so that we can get is gone.

 My time is valuable. I am not going to take on listings when sellers are unrealistic about the sale price, and when sellers aren't with the program of price reductions to stay competitive.  We can't be spending time and money on listings that don't sell right now. We need to keep money focused where returns come. For our team this has led to less and less print advertising and more clever web campaigns. This, while still time consuming, has proven time and time again to give much more returns, and to be much more cost effective.

I also will not hesitate to take the listing that is on the lower end of the price scale if it is priced right. I see lots of agents in my area focusing only on luxury homes, but those are sitting longer right now. I need my inventory to be moving because that translates to cash flow, and that is essential to the stability and consistency of my business.

I guess I can look forward to this market shift eliminating a lot of newer under qualified competition. You know the folks who prospect and offer 4% listings so that when a professional talks to a seller they are told that 6% is too much.

What has the changing market done to the way you do business. Are you finding yourself trimming costs, and focusing on ROI? Are you taking different listings? What's changed in '07 in your market center?