Competitive Market Analysis In A Changing Real Estate Environment

In fiscal 2005 we had an average of 156 to 165 residential listings available in our MLS region, which is a huge geographical area encompassing several coastal communities of great beauty. It was in that cycle that we experienced new trends and patterns such as multiple offers and escalation clauses. Coastal communities such as Seaside, OR. was the lucky beneficiary of appreciation rates between 30-35%. Inventory was difficult to replenish as the demand far exceeded the supply. It took until January of 2006 for the inventory to reach a total of: 200 residential homes.

Fast forward to 2007 - 2008: At the present time our inventory level stands at a total of 539 residential homes for sale. Yes, we're definitely in the midst of a strong buyer's market. That being said, we remain somewhat exempt from the doom and gloom patterns cited nationally as we remain a resort destination or as my husband would say, Portland's playground. Suffice it to say, we still have many seller's that believe that it's a seller's market (optimistic thinking at best) and buyer's that believe that we're in the "Let's Make A Deal" deep discount phase. Try making polar opposites attract!

I've always lamented over my competitive market analysis reports as I take the responsibility very seriously. I once worked with a realtor who utilized the cma "Easy Button" by using the averages supplied by the online report without making the appropriate adjustments. As a professional, I could never take the easy way out. I've developed realtor's intuition and mentally theorize on the property's value, but go on to research and back solve to see if my thoughts parallel the research.

In the past year I've encountered many a seller who stonewalled my pricing recommendation when presenting my CMA's. It's at this crossroad that I've resorted to recommending that we secure the expertise of a licensed property appraiser, deferring to them as the tie breaker. I've had great success utilizing this resource in my portfolio of services. Ironically enough, every time I've engaged their services I've been within $ 4,000 of their suggested value. I have no problems rationalizing the expenditure as a cost of doing business. The way I view it, it's appraisal education and reinforcement that I'm heading in the right direction. To me, engaging the services of an appraiser is a cost effective expenditure if I can correctly price the home I have a better chance of selling in record time while also reducing my marketing costs by running fewer advertisements.

Willing to share what's worked for you?