Hey, friends! Let’s be honest—everyone and their grandmother are trying to get buyers in this market. It’s exhausting, right? That’s why for my recent article , I spoke with a top real estate professional about why the secret to thriving in a low inventory market is simple: get listings. If you’ve been looking for a way to shift your strategy, I’ve got the highlights of the conversation here, along with actionable advice that will help you pivot your business toward success.
The Shift from Buyers to Listings
Here’s the truth: In a low inventory market, buyers are typically not ready. They often need to sell first before buying, which means they’re not going to put a non-contingent offer in. So, why waste your energy chasing after these buyers when you can secure listings and control the transaction?
Market Characteristics
Before we dive into the strategies, let’s set the stage by understanding the current market. What is the real estate market like right now? There is overwhelming demand for homes, but there’s extremely low inventory. This means buyers are frustrated, facing multiple offer situations, and often walking away without a home. It’s a recipe for burnout if you’re chasing these buyers.
The Shift to Listings
So, what’s the big advantage of focusing on listings? When you have listings, you have control. You can set the timeline, attract multiple buyers, and often sell above asking price. It’s like being the star quarterback instead of sitting on the bench. You want to be the one calling the shots, not the one waiting for a Hail Mary pass. Plus, securing listings allows you to build your pipeline and create a more stable income stream.
Effective Prospecting Techniques
One of the most effective ways to secure listings is by tapping into your existing database. If you have past clients or contacts, start there. Regularly reach out and ask for referrals. Use a simple script when calling these past clients: “Can you do me a favor? Do you know anyone thinking about buying or selling?” It’s straightforward and often yields great results.
Brian emphasizes that maintaining strong relationships with past clients pays off. He keeps in touch with his clients, which leads to referrals and, ultimately, more listings. If you’ve had success with a client, don’t be shy—ask them for referrals!
Open Houses as a Tool for Listings
Now, let’s talk about open houses. Many agents think these are just for selling the house. But here’s the deal—open houses should be about generating leads for future listings.
Preparation Steps
Here’s how to maximize open houses to get more listings:
- Pre-Marketing: Don’t list the property right away. Spend time marketing it beforehand through mailers and door knocking.
- Neighborhood Engagement: Host neighborhood-only open houses with food and drinks to attract local residents.
- Follow-Up: Send handwritten notes thanking attendees and asking if they know anyone looking to sell.
Brian generates about 20% of his business from open houses. It’s all about preparation and follow-up. Get creative with your open house strategy—engage the neighborhood, and you might find your next listing right at your doorstep.
Handling Seller Expectations
Let’s be real—one of the biggest challenges in this business is managing seller expectations. Sellers often have these inflated ideas of what their home is worth because their neighbors’ homes sold for a certain price. But you can use this as a teaching moment. Use an analogy to explain the concept of value versus asking price.
Think about car shopping. When you’re in the market for a new car, you do your research. You have a certain make and model in mind, but then you find a similar model for $5,000 less than the one you had your heart set on. Are you going to pull the trigger on the more expensive option? Probably not. You’ll most likely go with the vehicle that’s more in line with your budget. Why should a homebuyer behave any differently? It’s all about value.
Explain to your sellers that your goal is to net them the most money. List the home at a price that’s competitive and attractive to the largest number of buyers. This will generate multiple offers and create a situation where the price goes up. It’s about getting them to net the most money, not just hitting that magical number on the CMA.
Overcoming Buyer Constraints
We’ve all had those buyers who just can’t make a move without selling their home first, right? It creates a deadlock, making it hard for them to get into the market. But here’s the thing—there are solutions.
Consider non-contingent offers on new homes while they prepare their existing home for sale. It’s all about positioning them as strong candidates. Bridge loans are also an option, giving them the financial flexibility to move without the hassle of selling first. It’s about finding ways to make it work, so your clients can start their new journey.
Mindset and Burnout Management
And finally, let’s talk about mindset. In a challenging market, maintaining a positive outlook is crucial. Start your day right by establishing a morning routine that sets you up for success. Win your mornings by focusing on your goals and planning your day.
Set aside time for focused work—this means no interruptions from emails or texts. It’s easy to get pulled into the daily grind and lose sight of what’s important, but staying focused will help you stay ahead of the curve.
Conclusion
In this market, shifting your strategy from chasing buyers to securing listings is the way to go. Focus on building those relationships, engaging your community, and maximizing open house opportunities. Manage your seller’s expectations, find creative solutions for your buyers, and most importantly, maintain a positive mindset. If you implement these strategies, you’ll be well on your way to thriving in this market.
Are you looking for more valuable insights and expert advice to elevate your real estate game? Check out our articles at The Close. We’re here to help you succeed, one article at a time!
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