Over the last few years, the American real estate industry has been subject to a low inventory market. While this will change eventually, real estate agents must learn how to adapt and navigate these turbulent waters in the meantime. The biggest challenge of such a market is two-fold.
First, sellers in such a market have increased their equity and as such have bypassed their underwater mortgages. As a consequence, many will hold out and refuse to sell unless the offer is lucrative. Second, those who want to purchase a home such as millennials will find a large shortage of inventory and may simply make offers just to keep away rival bidders. Below are some guidelines that will help you succeed.
Search For Listings Which Are Withdrawn or Expired
Experienced real estate agents comb the MLS for past property listings that never closed. Most of these listings fail because prospective buyers consider them overpriced. In most cases the owner hasn’t kept abreast of market changes which means they may still want to move the home before the market reverses itself and an influx of inventory makes buyers harder to find. Speak with the owner and let them know that you’re a real estate agent interested in assisting them in finding a buyer. Explain to them the benefits of selling now as opposed to waiting.
Look At Rental Listings
There are a number of situations in which an owner would want to rent out their property. Some of these include divorce, employment transfer or other significant life changes. In other words, many people rent out their properties when they feel they’re unable to sell them. The property could be underwater, or perhaps their asking price isn’t realistic given current market conditions. Speak with them to see if they are open to selling.
Zillow is one of the most popular online listing sources, particularly its “Make Me Move” feature. This feature gives property owners the ability to set a price that would move them to sell. This is important for real estate agents because in many cases the buyer might not be prepared to sell yet, but are merely performing a market test. Filter the Zillow listings and contact the owners of properties which interest you. Inform them that you’re a realtor that has worked with multiple buyers and you’d like to view their home. Meeting face to face could be just the thing to get an offer you can work with.
Be On The Lookout For Moving or Estate Sales
Moving or estate sales are sales conducted by people that want to get rid of furniture and other used merchandise. In many cases the seller is either moving, or they are the heirs of the property owner who has recently passed away or they’ve decided not to manage it. This is a significant opportunity for realtors; you will want to check the MLS to find such properties and then contact the owner and offer an analysis of home value.