If you’re an agent working in California, Connecticut, Massachusetts or elsewhere in New England, you don’t need to read any further…..unless you believe that what can happen in one state can happen in another…..Those of us working in New England are still working in a robust market. However, what about our peers working in places such as Dallas where currently the market has shifted and sellers are not willing to reduce prices, while buyers are not willing to pay even last year’s prices.

There are pockets of “stand-offs” around the country. When history repeats itself (it always does,) it’s wise to look back and learn from those who went before. No need to reinvent the wheel.

Here are three tips for navigating a market that’s moved to either “advantage buyer” or no winners:

1. Get a grip when it comes to pricing:

   If sound decisions are to prevail going forward, the market pricing must move back into line with what consumers are willing to pay. Remember, real estate is a product being brought to market. A product is either embraced by the consumer or it ends up on the half-price rack at the next clearance sale.

   There is nothing wrong with any product that the right price and/or terms won’t cure. When the really motivated sellers see the light and price their homes commensurate with present market conditions, the flow of transactions will begin anew. The stalemate ends and the market balances itself over the course of a few years.

   That means agents have to re-double their prospecting efforts in order to find people who are highly motivated to move. That’s not the same as a seller who’s looking back 18+ months and saying, “We better list now. We waited long enough, and we have to realize X dollars or we can’t do it.” Agents, find people who will respond to relevant data showing the risks associated with delaying.

2. Have a “come to the Lord” meeting with all of your listers:

   There are price reductions needed, and the longer you allow homes to sit on the market overpriced, the more they contribute to the overall decline of housing prices.

   It is far better for a seller to turn down an offer than to never get one in the first place. You owe it to yourself as well as your seller to position the home to garner real traffic. That’s the only way to really know what the market will bear. Without offers it’s a crap shoot as to what the buyers are thinking. When the market is mercurial, we must adopt a wait and see policy, yet position the product to attract showings.

   If the property needs a price reduction, and the sellers will not cooperate, the agent must walk! There is little to be accomplished in marketing a property that cannot recoup for the agent the costs associated with their time and marketing expenses.

   The sellers who are not highly motivated may list with another agent at the same price. For my money, that’s a blessing. The fastest way to sink a competitor is to support their inventory of overpriced, non-saleable properties.

3. Educate your buyers and sellers thoroughly:

   To be forewarned is to be forearmed…Have your documentation current and accurate. Show potential sellers the list-price-to-sale-price ratios as they have changed over the past 18 months. Do the same with the list-to-sale-date ratios. Absorption rates are critical pieces of the puzzle as well. A sponge will only take in so much water, and a marketplace will only absorb so many sales.

   If a seller is motivated to sell, data such as this helps them to make business decisions that will support their chances of sales success.

Real estate continues to bolster the economy in many markets. It’s a fabulous investment, the dream of every young couple and the solace of old age. We real estate professionals must be the “keepers of the flame” and have a pulse on our markets in order to always give our clients the best counsel possible.

Published: July 7, 2004

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Marylyn B. Schwartz, CSP, is a noted expert in real estate and corporate sales training, team development, customer care and diversity issues. She is president of TEAMWEAVERS and a trainer for Leader's Choice, the number one real estate sales training program in North America. Marylyn is also an author and Business/Life Coach. Contact her at , or visit her website at teamweavers.com.