No matter what region of the country you’re from, a shortage of housing inventory continues to be a leading detriment to brokerage and agent business. In a session titled “How to Generate Inventory When There’s Not Enough to Go Around,” moderator Erin Cestero, president and REALTOR® at JBGoodwin REALTORS®, led a discourse with three longtime pros centering on the current state of the housing market, with many homeowners holding onto sub-4% interest rates and a limited inventory.
Panelists included Tyler Tapley, a broker with CRYE-LEIKE Real Estate Services; Sean Farley, a New Jersey sales associate and New York broker and real estate salesperson with Terrie O’Connor REALTORS®; and Mike Pappas, CEO of The Keyes Company/Illustrated Properties.
Overall, the panelists stressed the importance of connecting with people, whether through phone calls, in-person meetings or online interactions. They also stressed the need to adapt to changing market conditions and utilize both old-school and new-school strategies to succeed in real estate.
All agreed on the importance of combining technology with traditional methods like phone calls and direct mail, along with the importance of personal connections and community involvement in finding potential sellers.
Pappas emphasized the importance of being proactive and consistent in real estate. He mentioned leveraging social media to engage and communicate with potential clients, as well as utilizing the sphere of influence by reaching out to past contacts and sharing listings and sales information with them. He also noted ways to spur new listings from homeowners who need a push.
“There are programs out there like EasyKnock that will basically buy their home and allow the person to stay in it, pay rent and then find another home,” he said. “You can obviously make contingency contracts, which aren’t so easy in a tighter market, but by listing the property, that can motivate them. Equity lines are a third option, and bridge loans are another one where you’re able to take some equity out of your home, buy another home and then sell. Realistically, you’re looking for motivation, with death, divorce, distress, all of those situations.”
Tapley suggested hosting social events or gatherings, such as tailgate parties or playdates, as a way to meet new people and build relationships. He emphasized the importance of being genuine and authentic in these interactions. He also detailed a unique way he has garnered new listings basically out of thin air.
“One of the things we do is kind of ingratiate ourselves with property management firms, and particularly property management firms that also run homeowners associations,” he said. “And we got lucky. I listed and sold a condo that had been vacant for a really long time. It was a foreclosure. The bank wasn’t paying the HOA dues. So I listed it and sold it, and they were happy. The HOA got it off their books and started notifying other sellers, saying, ‘Hey, if you’re needing an agent, Tyler can help you out.’
“Before you knew it, I sold 11 or 12 in that particular building. So you can do the same thing. You talk to the HOA, become friendly with them. You can also look online and see if there are any liens that have been placed on a property by an HOA, then talk to them and see if there’s a way that they can put you in touch with that particular seller. Another thing you can do is send them rental leads. If you know somebody that’s looking to rent a property, let them know. If you keep sending them prospective renters, or if you know of an owner that’s wanting to rent it, they will help you out. We get at least one listing that way every single month.”
Farley highlighted the value of networking and building connections within the community. He mentioned joining community organizations, such as charitable groups or faith-based organizations, as a way to meet potential clients and establish trust. He also offered creative solutions from a “tech” standpoint that can open up opportunities.
“Tech is certainly a great tool, and I’m a believer in old school and new school,” he said. “The first of the tools, and it sounds somewhat smarmy, is the cellphone. It’s pick up and dial. And I’ve said this in seminars, that if you’re not on the phone calling almost all day when you’re not at an appointment, then you’re not connecting socially. To me, technology is an added layer to the overall puzzle. Our local MLS has a data-mining tool called Remine, which checks where people are looking online.
“Yes, it’s big brother looking in to say, ‘Okay, what do you need? Why do you need it? And how can your agent or brokerage that you choose to represent you deliver that?’
“Let’s take the town where my office is that basically will say we have 52 homeowners ready to sell. I then do a letter campaign. Now I’m using technology, and I’m using old school. With the senior population, they’re the ones who still pick up the newspaper that’s getting smaller and smaller on the driveway. They’re the ones who still look at my letter because they love to receive mail. It’s how they used to communicate a lot. I think you have to combine tech with old school.”
Cestero mentioned the importance of focusing on specialty markets, such as seniors or individuals going through divorce, as these markets tend to have consistent needs regardless of interest rates. She also emphasized the need to embrace technology and use it as a tool to open up new opportunities, such as data-mining tools and targeted marketing campaigns.
“In my past life, I ran senior care companies,” she said. “I didn’t realize at the time that I was on the wrong end of that deal. I remember in one single year I referred 170 seniors who were either rightsizing or moving into a facility to my local real estate agent. Boy, was I on the wrong end of that financial deal. Now I have some of my team members focusing on specialties where they know regardless of interest rates or what has happened in the market that they’re going to be selling. Focusing on seniors, they can go out and target senior care facilities, rehab centers and nursing homes, and help coach those individuals making life changes.”
Pappas wrapped the session by encouraging agents to be aggressive.
“We say in Florida that basically most REALTORS® are jellyfish,” he said. “If you know what a jellyfish is, it floats along, thank you very much. And it hopes to sting somebody. And along the way, basically it’s passive real estate rather than aggressive real estate. I’m not saying that we want to be sharks by any means, but you do have to go after your prey, and you do have to have a plan. And that consistency makes all the difference in the world. Social media is a big factor in today’s world where you can leverage for free a tremendous amount of contacts. You have to engage, you have to communicate, you have to give value and content.”
