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Sound Pricing
+ Solid Marketing
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SOLID SUCCESS FOR SELLERS AND
VALUE FOR BUYERS
May 2008
 The
Lemming Effect
While in the midst of masses, running in the wrong
direction can feel right until it is suddenly too late.
Make no mistake, the real estate market is effectively
at a standstill, and the sooner a few savvy sellers make
the break from the crowd and come to this realization
the sooner momentum can return.
What's Behind the
Standstill?
BUYERS
Huge numbers of homeowners simply aren't moving - they
are upside down on their mortgages and can't sell.
Others are waiting for prices to reach a perceived
bottom. Factor in a restricted credit market, and
despite low interest rates the numbers of those who
qualify are noticeably reduced. Buyer activity (read:
window shopping) continues to remain strong, but they
aren't signing Buy/Sells.
ARE YOU A BUYER?
Ignore the listing prices - Choose 2 or 3 favorite
properties and allow us to negotiate a reasonable price.
The current inventory is full of overpriced yet
desirable properties.
SELLERS
The media's talking heads are predicting the market will
right itself this year, and many sellers are listening.
Such 'experts' foster unrealistic expectations, which
combined with the faulty advice of agents result in
pricing levels better suited to the state of the market
in 2005 or 2006. Stubborn pricing is camouflaged as
logic as sellers look to the crowd's past performance in
a pre-standstill market. The pervading reasoning that a
seller should be able to sell at the same price as
former neighbors is a recipe for stagnancy.
ARE YOU A SELLER?
If you "don't really need to sell" we recommend you
postpone entering the market, you must at least "want"
to sell to actually have a reasonable opportunity for
success in this market.
Local Signs of the
Times
Locally the failure of Sellers to reduce their price is
evident in Bigfork's Eagle Bend/Harbor Village
subdivisions. Over six months - zero Residential or Lot
closings, and as of May 1st there are 68 active listings
with zero under contract. The Lemming Effect is in full
force here, and despite current market performance many
new listings are at 2006+ price levels. The market is
clearly looking for some significant price reductions.
Prospective home buyers won't stop window shopping while
they believe prices will fall further, unless a property
is perceived as a value.
Cooking up Success /
Value for Buyers & Success for Sellers-
Investors, second home and first-time buyers are the
market's main sources of activity right now, and all
looking for value. Speculators are long gone.
Savvy sellers listening to good agents are in the front
of the market price trend. The value of experienced,
well educated REALTOR'sŪ services will continue to
appreciate in 2008 as days on the market increase. The
best agents will continue to produce 80 - 90% of the
transactions, and those with solid marketing plans will
enjoy increased market share in 2008.
The recipe for success is simple - sound pricing
strategy and solid marketing will generate success for
Sellers as well as solid values for Buyers.
If you want to hear about some success stories in this
market please stop by for a visit in our new office or
give me a call.
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Northwest Montana Real Estate
love montana. live montana.TM
