Help! There’s no inventory to sell… With so much demand and limited inventory, it’s no wonder that the real estate market has been booming. Homes are selling quickly with prices increasing to sky-high levels in some areas of America where there is a shortage on homes available for purchase or sale!
The hot seller’s markets we’ve seen across our nation can be attributed largely due to this lack of inventory situation – but don’t worry. I’m here to offer you some general tips and helpful suggestions on where to find the inventory. Let’s look at three areas of inventory.
3. Pocket Listings
Builders have an unlimited supply of inventory, sort of. As long as they can find land, supplies, and labor to build, they have a product. Not always do these builders place their properties in the MLS, so be sure to check out your local builders and get to know their product. Maybe even create a spreadsheet with each builder, where they build, their entry level pricing, and if they will cooperate with real estate agents.
Not only is it important to meet the builders (or their representatives) to get a feel for their product, but it’s also important to establish a long-term relationship. Why? Sometimes buyers come to the builder to create their dream home, but they have an existing home they need to sell. Maybe you can get a referral for a listing from your relationship and help that customer move into their newly constructed home.
A For Sale by Owner, pronounced “fizzbow”, is a great opportunity for a new listing. According to the National Association of REALTORS®, FSBOs accounted for only 7% of home sales in 2020.
Want another advantage for a seller to hire you? The typical FSBO home sold for $260,000 compared to $318,000 for agent-assisted home sales. Wow! You can help them keep more of their equity in their pocket!
Drive your back roads looking for FSBO signs, or check out some websites that advertise FSBO properties for sale. Be sure to create a relationship with them, not just a sales pitch.
Now, my type of pocket listings may not be what you are thinking. This isn’t some hidden listing that you are keeping a secret. I call those secretive listings, and those are bad for sellers. My type of pocket listing is where someone mentions to you, they would be interested in selling if you ever come across a buyer that would be interested. They don’t necessarily want to list their property on the market with an agent and have a sign, advertising, etc, but would consider an offer if you ever had the opportunity.
Many investors think like this. As an investor myself, I’ve bought and sold many properties without them actually “hitting the market”. Either people in my local market knew I was a long-time landlord and contacted me about buying their property or contacted me because they knew I owned a type of property they were looking to purchase.
Think back of properties you’ve sold in the past. Would the seller ever consider an offer if you brought them one? If so, put them on a spreadsheet for potential pocket listings. Then, if and when the time comes and you have a buyer that might be a perfect fit, reach out to the owner to see if they’d consider selling.
There are plenty of opportunities to look outside the box to find inventory. You just have to look. If you’re looking for tips on stepping up your listing game, you might want to check out this post.
Are you frustrated with your real estate career, but don’t know where to start or have a solid plan in place? You might want to check out my 90 days to Success Coaching Series.
If you’re looking for more ideas to implement into your real estate business to achieve success, be sure to read The Standout Agent, available on Amazon and everywhere books are sold. There’s a reason why it quickly became a #1 seller!
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Let the hunt for new inventory begin!