As we turn the page on a year many real estate professionals would prefer to forget, let's remember the lessons we learned in 2007 and carry them forward into 2008.

Goodbye Retail, Hello Barter

Sellers who thought they could slap a price on their property and wait for a buyer to meet that price got a rude awakening in 2007. In 2008, the listing price is a starting point for negotiation. Sellers need to be prepared for offers below their price. Selling agents can overcome the fear of short term depreciation by offering to write offers below listing price. This will actually help generate more sales.

Goodbye White Knight, Hello Negotiator

Listing agents need to be prepared to present offers below the listing price. All offers should at least be countered, even if the counter is at full listing price. Agents who arrogantly dismissed offers on behalf of their clients were part of the problem. In 2008, be part of the solution by working to facilitate negotiation between sellers and buyers. The low number of transactions in 2007 indicates a fundamental failure of the market to negotiate with the objective of closing deals.

Goodbye Lottery Ticket Listings, Hello Motivated Sellers

Listing agents need to stop outbidding other agents for listings and then hoping for the best. Overpriced listings are a waste of an agent's valuable time and marketing dollars. If the seller is serious, the listing price should be set with the objective of getting one or more offers within thirty days. The days of treating listings as lottery tickets are over because those agents will go broke in this market.

Goodbye Referral Only, Hello Farming

Brokers and agents have long dreamed of working by referral only, but the lower number of transactions has exposed how dangerous that model can be. Real estate professionals who want to succeed in 2008 need to get back into farming to increase their potential for transactions. If you don't know where to start, talk to your title rep. Title companies don't make money unless you close escrow, so they have a vested interest in helping you generate leads and successfully complete transactions.

Goodbye Listings Only, Hello Selling Side Commission Checks

Working listings only was a viable business model during the boom when there were plenty of listings and they closed relatively quickly. In 2007, listings cost more to market, took longer to close, and were harder to get despite record inventory. Brokers and agents can't afford to turn their back on 50% of the commissions in 2008. They need to be willing to work with buyers. Those who are concerned about wasting time should get back to basics by having buyer prospects prequalify and sign a Buyer Representation Agreement. Someone will get those buy side commission checks, usually for a full 3% of the sale price. Why not you?

Goodbye Expenses, Hello Value

The boom years created a culture of expensive industry events at hotel meeting rooms and upscale restaurants. Often these events were more social gatherings than business development meetings. The key to survival in 2008 will be eliminating needless expenses and focusing on opportunities to get information that generates business. Industry groups need to adapt if they want to remain relevant in 2008.

All signs point to 2008 being a challenging year for the real estate industry. Many good people have already been pushed out of the industry, including brokers, agents, title reps, stagers, inspectors, and assistants. We may lose more good people in 2008, not just the "order takers" and "rain catchers", but the experienced professionals who fell into bad habits during the boom years and failed to learn the lessons of 2007.

Goodbye Complacency, Hello Persistence

If we pull together and work hard, we can make 2008 a better year!

Frank Jewett