We have experienced and are presently going through a complete overhaul with various challenges as Realtors, consumers and those vendors in the Ancillary business of supporting the real estate transaction. With inventories at record highs, home foreclosures, mortgage fraud, and dismal headlines saturating our news media, you would think we are heading for the end of times in the real estate world. "In some ways, the extended real estate boom from 2001 to 2005 created unrealistic expectations that housing is a short-term high-yield investment," said NAR Chief Economist Lawrence Yun in a Realtor.org, recent article. I think he hit it right on the head.

There's an old saying in the real estate business that indicates that there is no such thing as a bad market, no such thing as a good market, It's just a market. We have had to learn to adjust to changing markets since the beginning of times. Supply and demand adjust pricing and time frame. When we were in a sellers market as indicated above from 2001 to 2005 consumers continued to pay high prices for homes, just like the stocks were bought at high inflated prices during the dot.com boom. (Ouch!)

Smart investors buy low and sell high. Smarter investors, invest for the long term, steady yield. Timing is everything. (Who has that crystal ball?) One thing for sure, people will always be moving due to career changes, divorce, becoming empty nesters and numerous other reasons. The key now is to get creative in a way we had to back in the early eighties. (By the way we did survive) :-)

Let's look at three market segments:

1. Foreclosed Homes (Since that seems to be the headlines these days) Yes, these consumers need consulting in an attempt to save their homes. If they do sell, the banks need to participate in a short sale negotiation to allow the buyer and seller to come to terms. The sooner these houses are liquidated to new purchasers it will allow the normal sellers pricing and sales to even out. We need investors to obtain these houses at attractive enough prices to that would allow time for improvements, finding a tenant, and getting a good return on their investment. This takes good negotiation and attractive financing for non-owner occupied money.

2. Consumer moving up: Still a great time to move provided your moving into a more expensive home. Let's say you take a 10% hit on your 100,000.00 house. or $10,000.00 when you sell it. If you are buying a 200,000.00 home, in the same market, you should be getting a $20,000.00 reduction at 10% or a $10,000.00 gain. (These are hypothetical numbers however, putting egos aside, it gets everyone moved.

3. Seller's who don't need to sell. Then don't sell. Take your house off the market until you become motivated and realistic with the supply and demand system of home selling. This would eliminate some inventory to allow the market to even out sooner.

As Realtors we work with all different types of buyers and sellers who are buying and selling for all different reasons. Good listening skills, realistic expectations, and a positive attitude rank at the top of the list when it becomes time to make good choices for both the Realtor and the consumer.

John says it best right here: "Realtors® must learn to integrate new channels of communication into their businesses. As with other industries, real estate professionals must efficiently meet the needs of their clients while providing the world-class customer service to succeed." John Tuccillo, former NAR chief economist

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"Expect the Best" Mike