NEED INVENTORY? Try This!

by Larry Kendall, chairman of The Group, Inc. and author of Ninja Selling

Most areas of the country are experiencing a shortage of listings, more buyers than sellers and multiple offers. In some markets, the pushing and shoving are so intense it’s being called a “Mosh Pit Market.” The companies with the listings are controlling the market. How do you help your team generate more listings?

In surveying top listing Ninjas, we find that many of them are listing more properties than ever. How do they do it? Here are three of their top strategies:

Bring your A Game. In a hot seller’s market, the temptation is to cheap out. Why invest any money in professional photography, brochures, staging or pre-inspections? This house will sell in 72 hours with multiple offers. This is a short-sighted approach.

Top listing real estate professionals have a mindset that “my next listing is embedded in this listing.” They know that 65 percent of the buyers coming through that house will have a house to sell. They know that curious neighbors will also come through.

When the buyers (sellers) and curious neighbors (sellers) see a beautifully staged home, professional color brochures, a wonderful counter display with all the information on the home, and a contract writing kit, what do they think? Wow! This home is a cream puff and this listing sale professional is a pro. I like how they market. When I sell, I want to list with them. Because the real estate professional brought her A Game, she generated her next listing(s) from this listing.

Dog Days. The opposite of a cream puff is a dog. This is a property that has always been hard to sell. Maybe it’s on a busy street, has an obsolete floor plan, is in poor condition – or all three. In a normal market, this property has been nearly impossible to sell. However, anything will sell in the “Mosh Pit Market!” Top listing real estate professionals are calling these sellers and letting them know, “If you have ever wanted to unload that dog, your time in now!”

Buyers and Sellers. Sixty-five percent of buyers have a house to sell. When they buy, they generate a listing. What if they are afraid to put their house on the market because they are worried it will sell quickly, and they won’t be able to buy another home? Legitimate concern.

Ask this question, “With perhaps the lowest interest rates in your lifetime, are you living in the home of your dreams?” Follow up with, If you could wave a magic wand and live in your dream home, describe it to me.” Rehearse these questions at a sales meeting and see how it feels when you are the buyer/seller. Discuss how, with the low interest rates; they could be living in that home today. How do they do it?

In most markets, prices have risen dramatically in the past three years. In our market, the average home price has gone up over $100,000. In our market, sellers who put 20 percent down three years ago have seen their equities double or even triple. Most have equity again – big equity in many cases. What about refinancing, pulling money out of their current house, and using that money as a down payment on their dream home?

This strategy isn’t for everyone. They run the risk of owning two homes for a while. However, if they’re in a hot seller’s market, the risks are minimized, especially if they are moving up. In most markets, the hottest segments are the lower and mid-price points. The higher price points tend to be slower markets segment and sell in a hotter one. Again, this is not for everyone, but top real estate professionals are presenting the idea to their clients and letting their clients decide.

Real estate is like a game of monopoly. Control the board, and you control the game. The way we control the board of real estate is with listings. It’s also how we thrive in the Mosh Pit.^

This article originally appeared in the July 2016 issue of the REAL Trends Newsletter is reprinted with permission of REAL Trends, Inc. Copyright 2016.

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

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