When inventory is low in your marketplace and there aren’t many homes for sale, prices go up. This is a great thing for the seller. What though, do you do, if you are a Realtor® and are trying to generate business in a geographic farm area?
While it might be more difficult to find and develop business, there are a few tips we’d like to share that will help you bridge that gap, until the inventory picks up and there is more business to be had in your marketplace.
1) Send “We have buyers” postcards out to your farm area(s)
When inventories are low, you find that the existing home sales generally occur in a multiple offer, going over asking price scenario. For instance, just last week in Los Altos, CA, one of our clients sold a home where there were sixty (60) offers put in. The family that won the offer ended up paying all cash, and $40,000 over asking.
Since the sale of this home, our client has received numerous calls from others that want a house like the one he just sold. He is known in the area, as a top professional, and therefore people look to him as a source for intelligence in that marketplace. What do you think he called us to put together? You are right! An “I have buyers interested in a home in your area” postcard.
Now I feel compelled to point out that if you truly have no hope of ever finding a buyer for an area, you really shouldn’t send these types of cards out. If would be sellers find out you do not have buyers that want their home, this could make you look really bad. But, even if you don’t “actually” had a client waiting in the wings, and the area is ripe with buyers that you can represent, sending such a card may be appropriate.
Used wisely, these cards are a great way to get in front of prospects and possibly pick up some business that is brewing in your marketplace. While most of our clients choose to use our Real Estate Postcard Printing & Mailing Services, you can also walk these postcards out, going door to door, and meeting your farm area’s homeowners, in person.
2) Work with more buyers
Are you a Realtor® that doesn’t want to work with, or refers all your buyer clients to other agents? If you are, and you are working in a low inventory market, you may want to rethink this practice.
Even though it may be tough to work with buyers, in a low inventory market (e.g. you may have to put offers on multiple homes, before one is accepted), if you vet your clients well enough, working with them can be very rewarding and lucrative to your bottom line.
What do you do if you don’t have buyers? The answer is easy. Offer to work another agent’s open house for them. This is especially possible, if there is an agent that has multiple listings that are having open houses on the same weekend. Obviously they can’t be everywhere at once, so they are going to need help from another agent.
If you hustle, and work your open house effectively, there is positively no reason that you shouldn’t walk away from the open house with many leads. The trick though is that you have to be diligent and immediately follow up with your prospect, after the open house. Using a CRM system, such as our Leading Agent Real Estate CRM and Business Practice Management tool is a great way to do this. Enter in your lead’s information, make a follow up call, and make notes as to what you discussed, and add them to electronic drip marketing follow up campaigns, to cultivate that prospect into a client.
3) Statistics and effective calls to action motivate potential sellers
No matter what anyone says, Real Estate comparables and statistics postcards are THE most popular, widely read thing that you can send out to your geographic farm area(s). Homeowners equate statistics with knowledge. Sending these cards demonstrates your expertise. Add that, with a powerful call to action and people that are considering selling, may be swayed to give you a call and discuss their options.
Looking at the sale prices of other homes in their neighborhood, the homeowner will quickly size up what their home may be worth. With rising sale prices, this may be just what the doctor ordered, to get the homeowner to pick up the phone and move into action.
These are just a few ideas to help you break through that “low inventory” barrier. There are many others, but the message I really want to drive home to you is that any market can be a great market for your Real Estate Practice. You just need to keep your finger on the pulse of where business will be coming from, and adjust your Real Estate Marketing Practices accordingly. We have found that United Facilities really helps manage our inventory and keeps thing moving smoothly.
If you want to learn more, ask questions, or find out about other great ways you can build your business in a challenging market, contact me. If you like my posts and want to learn more about Real Estate Marketing, our Leading Agent Marketing System, and how we might be able to help you get to the next level, subscribe to our blog, below: