In the current housing market, prices are rising and inventory remains low. While rising home prices can mean higher commissions,
a low inventory housing market means tougher competition to be a particular property’s listing agent or to help your buyers snag their dream house. We enlisted real estate experts from across the country to offer their advice on how to be successful in a low inventory market.
1.) Start Knocking on Doors: One of the best things to do is actually knock on doors in communities where your buyers want to live, said Lisa Treu, Treu Group, Keller Williams. We have found several upcoming listings that have been perfect for our clients. Also, tell past clients and friends what your buyers are looking for to get an edge on properties that haven’t been listed yet.
2.) Get Personal: Use a personal letter to target homeowners in areas where you have interested buyers, said Ryan Mathys, LaJollaAgent.com. Be specific and stress the fact that you have a motivated buyer. Even reference your client’s first and last name, as well as an explanation of why this particular home works for your buyer. We’ve had a good response with this strategy; we are currently negotiating the sale of two $1+ million dollar homes that weren’t on the market, said Mathys.
3.) Be an Internet Sleuth: Use Google and social media to contact the owner or seller directly, said Mathys. Pull the public records for specific areas, streets, etc. that your are clients are interested in, and then track down the homeowners through LinkedIn, Google searches, etc. and reach out to them.
4.) Take Advantage of Cancelled/Expired Off Market Listings: Be aggressive when searching for off market homes for your buyers. Use cancelled, expired and withdrawn listings that never sold to find homes that would be ideal for your clients, said Mathys. Contact the seller or listing agent to see if they are still interested in selling. Approach the seller or listing agent only with specific client requests so it doesn’t appear as if you’re blindly marketing to them. This approach will help you differentiate yourselves from others and bring value to both the buyer and the seller.
5.) Include Escalation Clauses: Hot listings are flying off the market within days, if not hours of becoming available. Add an Escalation Clause to your buyer’s offer, to escalate the offer to a predetermined amount above the highest offer received by a specified date. Gigi Grant, Zip Realty offers an example:
“In the event other written offers are presented to sellers on or before acceptance of this offer, buyer agrees to increase their offer to the amount of the highest net* offer plus $_______, with total price not to exceed $___________ on the condition Sellers provide Buyers with a copy of the signed offer from the other party(s).
6.) Check Out What is Rented: Look at homes that are rented. Sometimes investors are tired of being landlords and so they will sell the home if they can instead of renting it out, said Karyn Glubis, The Real Estate Expert, LLC.
7.) Be THE Area Expert: Agents who often get the most listings are the ones that know everything going on around town. They know which new restaurant is moving into the commercial vacant space down the street. They know the schools, businesses, and town administration. Not only do they KNOW everything about the town, the share it with the world through the local media and their own website, Facebook page, or blog, said Stacey Alcorn, RE/MAX Prestige.
We hope these tips help you achieve success in the current real estate market! Looking for more ways to be a successful agent? Enter the HomeFinder.com Agent Makeover Sweepstakes, to win a two-night business and style makeover in Chicago! Enter here and here.
Looking for more solutions on how to succeed in the current market? Visit our Agents and Brokers page.