We all know that the market is not what it was last year and not exactly as it has been at any time I can remember. It's got a mixture of some of our past market elements and some new components to the confusion, such as the effects of the sub prime market and the recent long string of low rate mortgages. It's a unique recipe that has created a unique atmosphere in real estate...especially here in Colorado Springs real estate market.

There are some things that were absolute "no-no's" in previous markets, that real estate professionals are having to consider in order to keep the ball rolling. I've seen some of the "heaviest hitters" doing:

DISCOUNT LISTINGS Back when I started selling real estate in Colorado Springs, I found that by using the example of my Real Estate training teacher, I based all of my projected listings on a 7% fee. Since price fixing is strictly prohibited and nobody told me that 7% might be a difficult percetage to get folks to swallow, I sucessfully listed at that for most of the beginning of my career. Only later did I see many discount brokerages were doing the same amount of work and more for about half what I charged...I have made a practice of telling my budding agents not to discount off the bat because it's a hard habbit to break and people expect you to do it all the time if you've done it once. However, the savvy Seller in this market is likely to expect a discount and scoff at full service for a high company set percentage. In other words, discounts are not only in...competition demands them.

FSBO CO-OPS Ahhhh, the dreaded FSBO co-op. They FSBO has a reputation, (deserved or not), for overpricing and underpaying, but many will offer a co-op to a real estate professional who is willing to do pretty much both sides of the work for half of the pay. Formerly avoided, this type of transaction is "back in style" and, after all, a deal is better than no dea, right?

LIMITED SERVICE LISTINGS These were strictly forbidden at my company. Lots of liability for  a little money. Should a brokerage take a fee to provide "limited service" to a Seller, such as putting their home on the MLS with direct contact and offers going to the Seller? The only requirement is that such listing has to apply with State, Federal, and Local Multiple Listing guidelines and that the duties of the Broker be explicitly and disclosed and agreed to in writing. Not the type of listing I'd like to be known for. I'm still putting my foot down on this one, but I'm seeing it more and more in other brokerages here in Colorado Springs area.

FLAT FEE SERVICES We all know the companies that do these. It's been my experience that they put the nickel and dime squeeze to clients for the more and more service that they don't understand they will need up front. "Oh, you want to be on the MLS? Well then, we have to offer a co-op to the Selling Agent as well. That's not covered by the up front flat fee you paid us..." However, I do think that if you are up front with the Seller, or the Buyer if the flat fee is a co-op offered, it's an honest way to offer commission or service.

BUYER REBATES AND INCENTIVE PROGRAMS Hate this. Some of the brokerages here in Colorado Springs home market offer to sell a person's house for free AND rebate them up to 2% on the buy side if they are buying new construction. Do these people like working for free? It's honest however, and allowable. Some of the larger brokerages offer these rebates and incentives IF you use THEIR preferred LENDER/REALTOR combo.

ADJUSTABLE COMMISSIONS If you sell by the end of this month...someone may pay you a higher percentage than next...good way to stimulate interest and appeal the greed of Buyer's Agents around town.

BONUS CO-OP COMMISSIONS Similar to the above strategy of the adjustable commission...this is a flat "bribe" in any amount in addition to the regular percentage or flat fee commission, to sell the house quick. Example: "1,000.00 bonus for accepted contract by December 25, 2007!"

GUARANTEED BUY-OUT PROGRAMS "If I don't sell your home in 57 1/2 days, I'll buy it myself!" Need I say more?

AGENT FUNDED STAGING While I have made it my policy in the past to give full service listing clients a paid, (at my expense), staging consult, I notice more and more agents springing for the full endeavor...knowing that stuff has to be done to get this place in condition to sell, the agent is more inclined, (if he or she has the capitol), to pay for the actual staging that will sell the listing for them...but use the clause below!

AGGRESSIVE ADVERTISING Print advertising has never been a big boomer for me, but I do it for a few reasons. Namely, to satisfy my client's need to know that their property is getting optimum exposure...even to those who aren't technically savvy and may not have computer access. Also it's a great form of name recognition around town!

FREQUENT OPEN HOUSES Pacify the Seller...get agent exposure...more name recognition...social skills development? :-)

AGGRESSIVE AND STIMULATING FOLLOW UP When the market was great, it was hard to get good follow up, but now it seems like any good prospective BA's are using the OFFERED opportunity to fish a little. "Oh, I'm glad you thought the home showed well and was priced right AND BY THE WAY...MY SELLER WANTS ME TO LET YOU KNOW SHE'S MOTIVATED SO BRING US AN OFFER..."

LISTING EXPENSE REIMBURSEMENT CLAUSES Before it would have been tacky, but now my Listing contracts and many others in town say, "In the event the Seller opts to withdraw or cancel this listing contract before it's term, the Seller agrees to reimburse the Broker for any and all actual documented expenses associated with the marketing of their property, including, but not limited to: advertising, open house expenses, staging fees, consultations, printing, maintenance and other associated expenses."

FARMING AND PROSPECTING THE OLD FASHIONED WAY People are asking the title companies to print those labels and post cards and actually sending out farming materials...IMAGINE THAT!

Let me know what YOU are doing to keep up with the Jonses of real estate this year...