Challenging times present us with valuable opportunities to take a hard look at our business plans, sales and listing strategies, and even our fondly held beliefs about what we think we know about our local real estate markets. One of the traps many realtors fall into is thinking that the whole market is weak, and that in this climate all listings are moving at the same rate - slowly. That’s like looking at the entire restaurant menu and saying, “There’s nothing to eat here.”

When people do that, they miss the bright spots in their markets. They miss delicious opportunities to adjust strategies and refocus on the merchandise that’s moving to maintain and even improve their bottom line.

Smart real estate professionals need to know which segment of the market is moving and what value share Starter, Move Up and Luxury homes represent. My own rule of thumb is that Starter Home values represent the first 60 per cent of homes sold, Move Up account for the next 25 per cent, and Luxury homes represent the remaining 15 per cent.

As an example, let’s look at Vancouver over the 12-month period ending July 2008. The Luxury home market outpaced the other two categories.

As a commission-based industry, it makes good business sense to concentrate on what is moving, rather than stubbornly sticking to our tried-and-true segments, our comfort zones, because that’s what we’ve always done in the past. And yet, shockingly, the preponderance of real estate professionals don’t bother to get a deeper understanding of their local market and therefore fail to capitalize on the great opportunities right in their own backyard.

Real estate professionals preach “Location. Location. Location,” This mantra suggests that we drive the market because we as experts know where the best locations are. In reality – and in Realty® – the market drives us and we would be well advised to recognize where it’s going, anticipate its course, and concentrate our efforts and resources where they will yield the best financial results, both in the short and long term.

The city of Vancouver is a fascinating case in point. Are Starter homes selling well there? You bet. But it’s luxury homes are driving the Vancouver market – with a market share by value of 38.3 per cent in the last 12 month! You can be sure that local real estate brokers and agents who have a precise picture of this market and trends are adapting their listing and selling strategies accordingly.

This is a best practice that separates good agents from the also-rans, and ensures that the real professionals will always know which categories of homes are selling and how to sell them, even in so-called “bad times”.