How to Minimize a Mammoth Listing Inventory

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Commentary By Margaret KellyRISMEDIA, Sept. 24, 2007-I hear you: The market just isn’t what it used to be. National media outlets tout headlines like “Weakest home sales in four years” and “Housing Woes: Interest rate increases and foreclosures.” Meanwhile, many brokers and agents have listing inventories that are bursting at the seams. What’s a professional to do?

First, don’t panic about the media’s take on the real estate market. We all know that many markets are adjusting. But keep in mind: In 2008, existing-home sales are likely to rise and home prices are expected to recover as inventories dwindle. That prediction from the National Association of Realtors suggests that now is the perfect time for buyers to take advantage of a wide selection of homes and competitive prices.

But many would-be buyers are sitting on the sidelines. Why?

Reports in the media make them nervous. “If the market is bad,” they wonder, “should we really take this leap?” It’s likely they’ve heard about or known someone whose ARM interest rate made the monthly payment impossible to afford, forcing foreclosure.

This is where you come in. As a real estate professional, you can alleviate buyers’ fears through informed conversation. Explain how mortgages work, how so many homeowners got into situations that led to foreclosure and help your buyers explore their financial options. This will do wonders for their confidence.

Right now, buyers can help balance your business. Use your finely honed communication skills to put them at ease.

Gather background information. Find out from buyers: Why are they moving? When do they need to move? What area piques their interest? What houses have they been looking at?

Give them information. Tell buyers about yourself and your company. Explain what’s going on in today’s market and mortgage industry using detailed information. Give them every reason to trust you by proving you are an expert.

Relax. Try to portray an attitude that says, “I have plenty of business. I want-but don’t need-this sale” versus “I have to make this sale.” Stay cool. This also helps buyers feel less pressured.

Put it in writing. This puts clients at ease. Create two documents: one containing technical information about your transaction and one detailing the financial elements.

Make a promise of ongoing service. Don’t stop at earning your commission; you’re a trusted professional for your clients and the community. Assure customers and clients that you’ll provide continued assistance in the future. RE

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