It's all a numbers game ...
Having been a full-time REALTOR® for 16 years, I have always carried an average of about 5-7 active listings. In 2006 things were different. I am now up to a whopping 25 active listings and growing. What has changed? The Southeast Michigan economy is what!
This year our market time has increased dramatically! In the "good old days" (1995-1999), homes averaged about 10-14 days on the market. Starting in 2000 to about 2003 we averaged a little longer (30-90 days). In 2004, things started going south fast. From 2004 - 2005, I saw a shift to about 180 days. Of course prices responded as well. We witnessed sellers lowering their price to entice a sale.
Well in 2006, sellers suffered the most. Market time is approaching an average of 10-12 months. Sellers are now moving out without selling their property. Many homes are now vacant. Many properties are bank owned. Many buyers are asking the seller for concessions. Increases in creative financing with 2nd mortgages etc.
By increasing my numbers (listings) I have been able to maintain my income during this market adjustment. I have been able to survive by increasing my listing inventory, adjusting my advertising budget and pushing for price reductions when possible.
Other avenues that I feel have helped me is by going back to my database, mailing my clients, asking for referrals, telling the world that I am still a REALTOR®, increasing my Internet exposure, tweaking my websites and contributing to blogs like Active Rain.
Yes, the market here in Michigan is tough. But the more listings you are able to maintain, the better chance that one will sell! The more that sell, the better chance that you will survive! It's still all a numbers game!
How are your 2006 numbers? How many numbers do you have to do in 2007 to maintain your income? I am now setting my 2007 goals!
DAVID -
Nice to see that you are able to maintain your income during this tough time...
I recently moved to Washington Twp from Chicago and find the numbers posted interesting.
Willing to share any marketing tips for listings that approach those 10-12 month totals?
I know there is no magic bullet but would love to discuss an approach for higher end properties.