When there’s low inventory, the consequences affect the entire marketplace. It disrupts buyer and seller confidence, and creates quite the challenge when helping clients find housing. But what if you could list more inventory right now?
When a roadblock like this appears, it’s time to get creative.
When interviewing top-producing agents recently, profitable and productive strategies emerged. Here are some ideas to get you thinking in a new direction.
Look at the data. The market is low on inventory due to the 2008 housing crisis, when new construction dropped over 50% and a lag in housing options followed. Add the supply chain crunch impeding the completion of new housing inventory, along with people not moving due to the pandemic, and we have less properties on the market than in previous years. But is there a silver lining?
Yes, and it’s appreciation. The laws of supply and demand kicked in as more properties accelerated in value. Although many homeowners are aware that their property value has increased, not all of them know by how much, or the many positive options they now have. That’s where a savvy agent can be a helping hand.
One smart agent decided to reach out to past buyers who purchased a property back in 2012. Her call script was simple:
“Hi! I know it’s been a while and I’ve dropped the ball on staying in touch, but I thought you would be interested to know that your property has increased in value over X%.”
These calls quickly led to new activity to fill this agent’s pipeline:
- Clients inquired about options they might not have been aware of.
- She asked the question, “Are you ready for a forever home?” She let clients know what a great time this is to sell with buyer demand high and interest rates still relatively low.
- One client shared that they were thinking of moving to another state and this call helped them make their decision.
- Another client shared that they were pleasantly surprised with the information and could now consider home improvements with the extra equity.
- One past client was interested in buying a small investment property with the new equity level.
- Another client was reminded that they may be underinsured for the new value of their property and was encouraged to contact their provider to make sure they were covered.
Thanks to contacting her past client base, the agent procured five new listings in less than one week. Providing relevant information to her past clients made this agent stand out as a trusted advisor and helped her create listings while homeowners discovered that they had more options.
Don’t have a large database of past clients? Don’t worry. Research an area that shows high appreciation levels and start calling. Homeowners may not be aware of the formidable increase in their property values and may not have an agent who is keeping them up to date. Reach out, show homeowners what their options are, and they will help you increase your bottom line.
Terri Murphy is a communication engagement specialist, author, TED Talk speaker, consultant and master coach with Workman Success Systems. Contact her at Terri@TerriMurphy.com.