The trend has been here for many years, but newspapers haven’t wanted to face it, and now many newspapers find themselves in serious trouble because revenue is dramatically down.   Why?   Because sellers are not willing to pay high advertising rates for zero results.   Why are sellers unwilling to pay for newspaper advertising?   Because the old style newspaper advertising doesn’t hook buyers anymore.   Sorry newspapers, but times are changing.

One newspaper company, which I think is fairly representative of the newspaper industry, reported:

As the industry remains mired in a protracted decline in print advertising that has persisted for more than two years, Chief Executive Gary Pruitt said ad sales continue to look bleak in October.   . . . Classified ad revenue has been a black hole for the industry since 2006, with particular weakness in the real estate, help-wanted and automotive categories.   McClatchy said Tuesday that real estate ad revenue fell 37%, help-wanted by 43%, and automotive by 21%.   ((MarketWatch, Oct. 21, 2008, read full article here.))

Circulation is substantially down, too.   “Newspaper circulations are declining largely because of the ongoing migration of readers to the Internet.   Despite the drops, newspapers are currently more worried about even steeper, double-digit reductions in advertising revenue caused largely by the weak economy.”   ((Read Forbes Article))

The National Association of Realtors’ national survey indicated that over 80% of all homebuyers start their search on the Internet.   Why not?   It’s conventient, free, and can be done any time of day or night.

As I have written elsewhere, we are in a major transition in how real estate is bought and sold, and this transition of tidal wave proportions is dramatically effecting newspaper and magazine advertising.   Unfortunately, newspapers have not been able to manage the paradigm shift.   In fact, they have been reticent to admit it is even happening.   Let me say this in a very simple way, no offense intended, but perhaps this will clearly make the point.   “You cannot teach a cat to bark.”   Traditional media really can’t figure this stuff out, try as they might.   Many are trying all kinds of “things,” but you have to first understand the problem before you start unleashing wild solutions.   There is now a huge “disconnect” between traditional print media and consumers.

The consumer figured this out, and the average consumer knows exactly how to search for what they want.   You’ve got to love free enterprise and the power of the consumer.   Consumers are changing an entire industry, and they are doing it without thinking about it.   They’re just being rational and reasonable consumers in a free enterprise system that gives them freedom of choice.

For Buyers of real estate in Sequim and Port Angeles, I welcome you to what you found right here, articles about real estate, marketing, prices, foreclosures, negotiating the best price, and the ability to search the entire multiple listing service right from this site.   Come to think of it, the fact that you are reading this article is proof of the power of the Internet.

Very truly yours,
Chuck Marunde, J.D., Broker/Realtor (retired real estate attorney)
Sequim & Port Angeles Real Estate, LLC
618 South Peabody Street, Suite I
Port Angeles, WA   98362
360-775-5424

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There is much ado about the state of the real estate market, many gloomy headlines with long adjectives, and not a little confusion for buyers and sellers. Confusion is often the result of combining too many different issues at the same time. For buyers and sellers in this real estate market in Sequim and Port Angeles, it may be helpful to segregate apples and oranges.

A real estate slowdown always starts with new construction home sales. That is the economic trend. The ripple effect of a slowdown in new construction hits big companies like Home Depot, and the newspapers start to print dramatic headlines, which begins to spread panic in the rest of the real estate industry.

A slowdown in new construction leads also to an increase in inventory, not only of spec homes, but also in lots for sale. A slowdown in lot sales means developers find themselves with too much inventory and some have a line of credit eating up their profits for the year. Overly aggressive builders get increasingly uncomfortable for the same reasons.

The mortgage industry is effected with a decrease in new loans, and that can be compounded with excessive subprime loans as in the present market. The knee jerk reaction of the Federal Reserve, the banking industry, the savings and loan industry, and the mortgage industry is to slam on the breaks and reverse many current policies. For example, the current mortgage dilemma has been increased by immediate increases in minimum credit scores and a reduction in the types of loans available. While this is probably good in the long run, such dramatic reversals exacerbate the current economic crises in the real estate industry.

Each segment of the real estate industry is impacted in sequence, almost like a game of dominoes. Sales of existing homes begin to slowdown, and that tracks similar slowdowns in condo sales, manufactured home sales, and multi-family unit sales.

A homeowner who is considering selling his home, or a buyer who is on the prowl for his next home should separate all these varied components of the real estate industry, and focus like a laser beam on doing one thing: selling or buying in their local real estate market. That will simplify much, eliminate confusion, and with a more focused goal, one can develop an effective strategy to sell the home for the best price in a reasonable amount of time, or find that next dream home at a great price in the best area.

What is happening on the national front or the mortgage market should not deter a buyer or seller from doing what they intended to do anyway. While some homeowners are feeling very nervous about selling their home in the current market, other homeowners have multiple backup offers on their homes. Yes, there are buyers out there who are in the market, and it just so happens that now is the time for their retirement or their move, and they are going to buy a house, regardless of the national market or media headlines. And a seller who understands that fair market value is fair market value, will sell the home at a fair price in a reasonable amount of time.

So if you are buying or selling, pause and take a deep breath. Then develop a practical strategy to accomplish your goal of selling or buying, as you would in any real estate market. Take it a step at a time, and practice good judgment at each and every point, and you will be successful.

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Traps for the Unwary

Audio Versions, originally Broadcast on KONP Radio (1450 AM)

Traps for the Unwary is a series started by Chuck Marunde many years ago.

The topics are an outgrowth of practicing real estate law for 20 years and dealing with the most common real estate disputes and challenging issues that keep coming up.  The gist of the phrase, Traps for the Unwary, which Chuck coined while still practicing law, was based on the common experience that hundreds of clients had, which is that there are many little and potentially dangerous traps that people were completely unaware of.

Trap for the Unwary #1: The Trespassing Fence
Trap for the Unwary #2: The Trespassing Driveway
Trap for the Unwary #3: Timber Trespass
Trap for the Unwary #4: The Good Samaritan
Trap for the Unwary #5: Encroaching Branches
Trap the the Unwary #6: Road Maintenance
Trap for the Unwary #7: View Easements
Trap for the Unwary #8: Speed Bumps
Trap for the Unwary #9: Private Well on Vacant Land
Trap for the Unwary #10: Shared Wells
Trap for the Unwary #11: Well Circles
Trap for the Unwary #12: Buying Vacant Land

Traps for the Unwary as Free Advice

As a practicing real estate broker, Chuck now gives away his knowledge and experience in real estate law to his clients as a Realtor, which redounds to his clients’ great benefit, because they avoid so many of the common traps for the unwary.

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