Since the start of the pandemic, real estate inventory has been low, causing higher home prices, more bidding wars and increased buyer stress. However, we have seen home sales stay constant. 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 more money is being added back into the GDP, but if housing prices get too high, buyers can’t 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 a recent report. This is a great motivator for real estate agents to work hard to get more listings on the market.
To do our part to help offset the reduction in listings, we launched the Workman Success Systems 120-day Listing Challenge in June 2020, which has continued. This challenge helps to increase inventory while putting more money into your pocket. The challenge is to help any agent or team double their listings in 120 days by following a set of simple challenges each week. Agents who completed it found that getting listings was easier than they thought when they put in the work.
When you focus on listings:
– Your team will leverage all the other agents in the market to help sell your listing. You’ll have an army of hundreds if not thousands.
– Your team 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!
– Your team 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.
– Your team 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 agent to list with, in the neighborhood.
– Your team 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 firstname.lastname@example.org to get set up with the e-book and challenge app.
Verl Workman is the founder and CEO of Workman Success Systems (385-282-7112), an international speaking, consulting, and coaching company that specializes in performance coaching and building successful power agents and teams. Contact him at Verl@WorkmanSuccessSystems.com. For more information, please visit www.WorkmanSuccess.com.