Since the start of the pandemic in March of 2020, real estate inventory has been lower than it has been in a long time. It has caused some strain on the market in every state and has resulted in higher home prices as well as more bidding wars that make buying a home even more stressful. It has ultimately lowered GDP. However, we have seen home sales stay constant, giving us hope that home sales will continue and we can get back to the normal state of buying and selling homes. So how do we do our part as real estate agents to help increase the inventory of homes to help generate listings in a low inventory market?
First, why do we want to generate more listings? After all, aren’t higher sales prices good for the economy? Well, yes and no. Yes, because that means more money is being added back into the GDP, but no because if housing prices get too high, buyers won’t be able to afford to purchase a home.
“Housing demand is robust but supply is not, and this imbalance will inevitably harm affordability and hinder ownership opportunities,” National Association of REALTORS® Chief Economist Lawrence Yun said in the association’s report.
This is a great motivator for real estate teams to work hard to get more listings on the market—everyone deserves the right to purchase a home.
To do our part to help offset the reduction in listings, we launched the Workman Success Systems 120-day Listing Challenge in June 2020 and it has continued throughout the year. This challenge helps bring forward ways to increase inventory while putting more money into the pockets of the agents who complete it. The challenge is to help any agent double their listings in 120 days by following a set of challenges each week. Agents who completed it found that getting listings was easier than they thought when they put in the work.
When your team rises to the occasion, they will be able to last through anything, including a low inventory market. When your team focuses on listings:
– You will leverage all the other agents in the market to help sell your listing. You’ll have an army of hundreds if not thousands.
– You will make better use of your time. Working with a seller typically requires an investment of five to 10 hours in total. Working with a buyer can take 40 hours or more!
– You will generate more listings from each listing. It will generate a buzz and attract attention from nearby homeowners who are likely to list with you in the future.
– You will build your database by adding each buyer who purchases your listings. A small percentage of agents keep in touch with their buyer clients after closing, this provides an excellent opportunity for you to adopt these orphaned clients.
– Your team will become an authority in the area and be known as the team to list with in the neighborhood.
– You will close more buyer sales. Every listing, when marketed properly, should generate 1.5 buyer-side closings. Ten more listings will generate 15 more buyer side closings. At an average sales price of $300,000 X 25 = $225,000 in total commission income.
These are all great ways to increase your production and get more inventory on the market. It will be up to you, however, to put in the work to get those listings. To learn more about the 120-Day Listing Challenge and see if you can start one in your office, please email Mark@workmasuccess.com to get set up with the e-book and challenge App.