Almost every major market in the US is facing a housing inventory crunch. The record low inventory of homes for sale is pushing housing prices higher as demand is far exceeding the current supply.
Real estate agents need more listings to increase local inventory and meet home buyer demand. How can you unlock more listings?
You can seize the moment of what is happening in today’s real estate market and turn the lemon of low inventory into the lemonade of new listings.
The old rule of thumb was that the value of one’s home doubled in value about once every 10 years. However, home prices have been escalating so rapidly that home valuations are changing as frequently as weekly.
Those free online home value estimation services are now entirely unreliable and outdated because of what's happening in the real estate marketplace.
By offering a bona fide, free home valuation as your main call-to-action, you can show local homeowners the actual current value of their home. When homeowners realize what they could net with a home sale, that could be a tipping point to make their move and sell.
Here are three things an agent can do to increase local inventory:
1. Start with neighborhood farming: Despite rumors to the contrary, print marketing is not dead. Postcard mailings can work well, especially when you show local recent final sales prices. If homes in your area are getting multiple offers and pushing offers above the asking price, consider including the initial listing price and the final sales price for local homes that recently sold. Your local title company is an excellent source for a list of homeowners living in a specific neighborhood.
2. Reach out to past clients: Want to cut through all the marketing clutter your clients see every day? Write them a personal note or letter. Yes, it will take time, but this approach should be well worth the effort. Offer past clients a complete market assessment of their home’s current value. Consider including clients who bought or sold a home with you within the last six months or more if you are in a housing market where home prices are rising rapidly.
3. Use Facebook for digital farming: One of the best ways to reach your past clients and prospects is to go where they are, and almost all of them are on Facebook. Facebook is one of the most powerful channels for digital farming. And while Facebook prohibits anyone selling real estate from targeting a specific neighborhood or geography, it still works remarkably well in still reaching the folks you want to engage with a boosted post. The key is to provide local statistics – down to the neighborhood level – about increases in home prices and value. By mentioning a specific neighborhood or community, you should attract the right people on Facebook.
Every one of these strategies should offer a Comparative Market Analysis or CMA. You don’t necessarily need to call it a CMA unless your audience is real estate savvy. Do stress that the online home value estimates can't keep up with changing home prices in most places.
Don't forget to tell your sellers about home warranty coverage available from listing to close as extra protection from a system or major appliance failure that could slow down their sale. You can learn more at cinchhomeservices.com.