Dick Christopher, principal broker of Patterson-Schwartz in Wilmington, DE, shared these observations with his associates about dealing with the current market:

As we enter the second year of this severe Buyers’ Market, I’d like to take a moment to share my perspective, with the hope that it will be helpful to you in your business. I have experienced many Buyers’ Market cycles since beginning my career in real estate as a salesperson in 1961, and while the elements of the current market are similar, there are many unique aspects as well.

Please know that I recognize how complex and difficult the relationship with a Seller has become. Having to change someone’s perception of their home’s value – one that’s ingrained in their minds and a significant component of their net worth – is an awesome task. If you like the challenge of doing something different every day, and you have the right attitude, tools and data, this is a great job; and an abundance of time, patience and persistence is required.

Let me also preface my views with the recognition that you may disagree with or be unwilling to do some of the things I recommend; I’m OK with that. If whatever you’re doing is working, keep it up; if not, repeat to yourself the definition of insanity – “doing things the same way and expecting different results.” I believe the Buyers’ Market we’re in requires different skills and real estate practices than the Sellers’ Market of 2000 – 2007, so that’s where my focus will be.

Although our business is complex, I have an unwavering, simplistic view of the economic problems facing our country, the housing market in general and specifically, our local market: they are, at bottom, a function of the basic economic principles of supply and demand.

Demand is influenced by certain variables – needs, wants and desires – an economic engine fueled by employment, earnings and net worth (value of investments, retirement accounts, savings and interest, social security, etc.) When the fuel runs low, the engine slows and ultimately stops.

So let me ask you, has your fuel gauge dropped over the past few years? Has each source of fuel declined, with the possible exception of Social Security? Would you agree there’s been an unprecedented worldwide “Destruction of Wealth”? And what effect has that had on purchasing power and the demand for any and all products – a slight change or a dramatic change?

I believe the stalled demand for most products is an indication that “the value is not there!” Unless it’s truly a bargain, consumers will not spend their money. They have been rocked by this economic tsunami and stopped in their tracks, causing our nation’s and the world’s GDP to plummet.

Here’s a test – where do you buy your gas? Think about it. How much do you pay? How many other gas stations do you drive by to get there? You’ll drive out of your way to save 5 cents a gallon – so for a typical fill up you’ll save a dollar. Why? Because you are hyper-sensitive to what you spend for everything, because your income is down, your 401k is down, your stocks are down, your car is worth less, your home is worth less, your real estate investments are worth less. You travel to save 5 cents a gallon, and you represent virtually everyone who is in the market today. Only a necessity or a bargain propels today’s Buyers to take action, nothing less.

How about the purchase of a car, or clothes, or a home, or going out to eat? Do you expect a fair price or a bargain? Why? Because the markets are oversupplied with practically everything, from clothes to gas to cars to homes, and just about everyone is undersupplied with wealth. Buyers today are conditioned to buy only what they really need, and they’ll shop for the best value. If you can’t get the value at Home Depot, you’ll check the prices at Lowe’s. And with the ability to shop online, you don’t even go out shopping until you’ve researched prices! If you feel this way, know that everyone else does too!

So where am I going with this?

Forget the government stimulus package and bailout; use them if they can help you personally or if they help your business, but these programs are not going to correct the supply/demand imbalance. In my opinion, the markets must adjust – they must self-correct.

Prices must fall for demand to rise. It’s fundamental – one follows the other like day follows night. The markets must adjust naturally, first through the pricing decisions of Sellers, which will cause the Buyers to take action.

The price of products that are oversupplied must fall to a level where Buyers perceive value regardless of the incentives the government offers. The government can’t bail out the market! Falling interest rates will help affordability but not cure it if the labor market is in freefall. Consumer wealth has been destroyed; where future income is questionable, confidence is shaken.

A Buyer in today’s market is making a decision knowing that even as they do, the home they purchase may decline in value – today’s bargain may be worth less next year. It’s no wonder they’re demanding the best price. As Realtors, we must respect and understand that reality, and utilize it in our work and the analysis we provide our Sellers. If you haven’t embraced this reality, you won’t be able to help your Sellers achieve their goals.

If you see our current market situation as I do, don’t exacerbate the problem by adding improperly priced listings to our local real estate supply. You must ensure that the product you put on the shelf today is a bargain. It is our professional responsibility to provide relevant, real-time data to Sellers – give them the facts. It’s not only our duty, it’s also the only way to help them achieve their goals.

Many, many would-be Sellers cannot sell in today’s market for a variety of reasons. Please make that determination early in your relationship with them; if they are not motivated to sell in today’s market, at today’s pricing, in 30 to 60 days, you have a decision to make. Do you “need the practice” or do you need to move on to a qualified, motivated Seller with whom you can partner for a successful sale? In qualifying Sellers today, you must be astute and decisive, and realize you cannot work with everyone –some prospective Sellers are not able to sell. Recessions are no joke, but homes sell in every market. We must conduct ourselves appropriately in the current market. Remember, your Sellers and Buyers expect nothing less.

Visualize this headline in tomorrow’s paper:

The bailout for the housing industry is the listing salesperson!

You have two choices:

1) Do your homework with Sellers – recognizing it’s better for the seller to sell today then next month, put a bargain on the shelf that a buyer must buy because of the value it represents, or

2) Spend 2009 working with Sellers who aren’t motivated, won’t accept reality, or simply can’t sell their home at today’s value, so you can “practice” real estate unsuccessfully and add more listings that aren’t truly for sale to a market already swollen with inventory.

The bailout is in your hands – stock your shelves with bargains and earn a good living. Adjust your attitude, be assertive, perfect your presentation and your ability to qualify to everyone’s benefit – your Sellers, the Buyers’ agents and your own. Remember, “Our expectations often determine the limits of what we can see.” Expect a successful 2009, where you partner with the right Sellers and do what’s necessary to accomplish your mutual goals.