How to Find Listings in a Low-Inventory Market
Knowing where to look and how to speak knowledgeably about the current housing market will enable agents to capture listings and sell homes to investors and buyers who need to move.
In this episode of Stay Paid, we’re speaking with Stephen Acree, team lead at Acree Brothers Realty Team in Lynchburg, Virginia, about how he and his team are facing the dual challenge of a real estate market defined by both low inventory and high interest rates.
There is no denying that the real estate market is experiencing a shift, but as Stephen notes, the housing market is always shifting—so while the current situation is different, it’s not new. He and his team are well-versed in what is happening in the market, the impact its having, and the opportunities agents have to educate homeowners and fill their pipelines. He’s confident that right now is an incredible time for agents, and he’s sharing what members of his team are doing to set multiple appointments every week.
Change the script
His first recommendation is for agents to rethink what they are telling themselves and their clients.
A low-inventory market doesn’t have to be a bad thing. Agents must understand that today’s prospects don’t want to sell—they need to sell. Regardless of what the market may be doing, there are always those who must sell their homes either because they accepted a new job offer, are relocating out of the area, got divorced, or have some other compelling reason to move. Your job is to solve their problem and find them listed homes. To help their clients, Stephen’s team has adopted a strategy that is working well:
- Identify absentee owners. These are people not living in the properties they own. They may possess empty rentals or even be beneficiaries with inherited homes they simply want to get rid of. Stephen suggests several resources agents can use to find absentee owners. As for beneficiaries, this free webinar explains a revolutionary service that will identify inherited properties fast and suggests ways to reach out to those who need your help.
- Engage in circle prospecting. This is a boots-on-the-ground approach where agents survey neighborhoods in which homes have recently sold. They collect addresses, find rental properties, and call the owners to connect. (Stephen’s team has had much success with this approach, and he shares the script they use to effectively open the door to conversations.)
- Get back to the basics. Stephen admits to sounding like a broken record, but he constantly tells his agents to stick to the 20% of activities that produce 80% of the deals. His agents set daily goals and track the number of calls they make, conversations they have, appointments they set, contracts they write, and, finally, deals they close. They are making at least a 100 calls a day.
Educate leads and fill your pipeline
When educating homeowners, an agent’s experience and enthusiasm will come in handy.
The reality is that buyers in today’s market are going to look at a lot of homes and compete against multiple bids—many of which they will lose to. No one wants to feel bad when buying a home, so your positive attitude combined with your experience is going to be crucial in keeping your clients in the game.
When approaching those who are waiting to buy, rely on the sage wisdom of experienced agents: explain that the best approach is to date the rate but marry the home. Let buyers know they can finance now and refinance when the rates drop (which they will). And when rates do fall, there will be a glut of buyers, equity in homes will go up, and competition for homes will increase.
For those who are reluctant to sell, approach them with information that allows them to understand the value of their homes, the offers they are likely to receive, and that you (more than likely) already have interested buyers and investors.
In all instances, add potential buyers and sellers to your database and continue to nurture them. That way, when things do turn around, you’ll have well-established, trusting relationships and be able to claim the lion’s share of the market.
We hope you enjoy this episode and act on the advice Luke offers at the end. We’d also appreciate it if you took a moment to leave us a 5-star review and comment on Apple Podcasts. (We read them on air!) Thanks for listening!
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