It’s no secret that 2016 was a historic low inventory real estate market and that this seller’s market isn’t going anywhere in 2017. The question is… Are you equipped to thrive in this environment? If not, you’re about to be. Here is your complete guide to 10x your real estate business in a low inventory market.
When competition gets fierce — and make no mistake, competition is fierce right now — the first step is to adopt a “do whatever it takes” mentality.
EVERYONE is hungry for price-point listings right now. All agents are struggling to put their buyers in their dream home.
So the reality is… To close more deals than your competitors, you may have to do things that your competitors are unwilling to do.
Here are some tactics that will help you close more deals, even when inventory in your market is bone dry:
Low Inventory Real Estate Market Tactic #1: “I Have a Buyer” (Door Knocking + Facebook Ads)
When people aren’t listing their homes, you have to go out and get them.
But instead of door knocking, sending direct mail, and cold calling blindly…
You can use your buyer’s desired neighborhoods to generate a larger volume and higher quality of seller leads in a tough market. Here’s how:
When you door knock and ask someone “Ever thought of selling?” you’re interrupting that person with a broad, non-specific question. The quality of the answer you get is going to be generally low.
Like a sales clerk in a retail store asking: “Can I help you find anything?”
You’re going to get a lot of low-quality, knee-jerk reactions like: “No thanks. Just looking.”
Here’s the solution:
Create a printed proposal of a pre-qualified buyer who is having a hard time finding their dream home and what they’re prepared to offer. Take this printed proposal with you when you go door knocking in that neighborhood.
That way, you’re not asking a broad question, you’re making a specific offer.
which is always better in marketing.
You knock and say:
“I represent these buyers who badly want to move into this neighborhood. They are pre-approved for this much and want to buy your house. Have you ever thought of selling your home?”
See the difference?
Now you’re not talking to them about selling their home “someday” …
You’re making them a specific and very real offer, right now.
You will notice a massive difference in the quality of conversation.
And even if the person isn’t interested, you can always ask them if they know of any neighbors who might be…
And then you have a double whammy. You can use your “I have a buyer who wants to buy your home” pitch in conjunction with name-dropping the neighbor.
Do this up and down one street and you will find someone who has thought about selling and… Presto.
You just generated a seller lead.
Pair This Tactic With A Facebook Ad:
You can also run an “I have a buyer” Facebook Ad, which sounds like this:
Are you thinking of selling your home in the _____________ area? We have a home buyer ready to purchase. Inventory is tight in the area, so you’ll get a fast sell and a great price. The buyers are a nice family who are relocating soon, and we’re trying to help them out by getting the word out on Facebook.
They need this many beds/baths, they want to be in _______ school district, they’re moving because __________, they can spend up to $_________. They have this many kids, they’re wonderful people, etc.
This is not a bait and switch. The buyers are a real family who need to move soon.
If your home meets the criteria and you’d like to sell, contact us here:
[Link to a page on your site with more information and a contact form]
And if you want MAXIMUM impact?
…
Do both!
Getting “boots on the ground” while leveraging paid ads on social media is a powerful combination.
Low Inventory Real Estate Market Tactic #2: Use Zillow’s “Make Me Move” Listings
On the surface, this strategy might not seem like it would yield worthwhile results.
But stop and think about it.
This person is interested in selling, at least to the point where they’d go through the effort to put their home on the internet.
Maybe they haven’t listed their home with an agent… But they are dipping their toe in the water to see how it feels.
Maybe they listed their home in the past and the agent did nothing to actually help the home sell quickly, or the market was sluggish when they listed.
Either way, these folks are actually very good candidates to reach out to and offer a comprehensive marketing plan for getting their home to sell fast and for a price they’d accept.
All you have to do is go to Zillow, search your area, and check the “make me move” option under “potential listings.”
Low Inventory Real Estate Market Tactic #3: Expired Listings
I’m sure you’ve hit these before in your MLS and done your share of cold calling.
Your chances of getting valuable seller leads from expired listings go way up vs. just asking them if they’d like to list again.
Come to these folks with real value and a specific offer that helps them get what they want and you will generate more quality seller leads than the other agent who’s making vague offers or beating around the bush with these folks.
Low Inventory Real Estate Market Tactic #4: Ask Other Agents
If you’ve got buyers lined up but no inventory, don’t be afraid to reach out to other agents who may be holding pocket listings or have a queue of “coming soon” listings that fit your buyers’ needs.
If you can approach other agents with pre-approved buyers — a deal that’s “ready to go” — then your chances are fairly good you’ll be able to close deals on properties before they make it to market.
Sure, some agents may not want to talk to you about their pocket listings…
But it never hurts to ask.
And what’s more…
If you can build a reputation as an agent who brings serious buyers to the table, closes deals, and is easy to work with, other agents may begin to seek you out to sell listings quickly or bring you qualified buyers for your own listings in return.
Because the thing about doing business in a low inventory market is that everyone is working in the same low inventory market.
It might not be easy, but everyone’s in the same boat.
Just by asking you’ll be surprised at how many agents will be willing to work with you so that everyone can close more deals and make more money.
Takeaways
- One of the most effective tactics for thriving in a low inventory real estate market is to leverage your pre-approved buyers to find “off-market” sellers. In a low inventory market, you need to make potential sellers a direct offer, not just ask if they’re interested.
- Try pairing an effective “I have a buyer” Facebook ad with your door-knocking activities.
- Get more out of expired listing cold calls by making a firm offer.
- Don’t be afraid to reach out to other agents in order to close deals and do more business.
Owner & Operator,
Chad Hett
The Elite Group
Largest Home Inspection Company in North America
Best Selling Author “Secrets Of Top Producing Real Estate Agents: And How To Duplicate Their Success.”
