The Myth Of The Inventory ShortageNov 24, 2021
"We are out of listings."
"There's nothing for my buyers to buy."
"I know people who want to move, but they are afraid to sell because there's nothing for them to buy."
That's the cry in real estate today from every corner of North America. While it is true that the number of homes listed for sale in your local MLS is way down compared to recent years, what's also true is that the number of sales is not way down. Sales figures have been consistent and robust.
There is good news everywhere you look. Homes are still appreciating. Interest rates are still very affordable. Homes are being built at record levels.
All the houses haven't disappeared
So, what's causing this shortage? It's not a shortage of listings. It's a shortage of listing agents.
One of my favorite listing agents said this to me today, "Do you know what I see agents doing? They are sitting by the computer, waiting for someone to list a property so they can schedule a showing for their buyer, then hop in their sports car, hoping to get there first, and the fastest car wins."
When you are used to the internet bringing everything from your fingertips to your doorstep, that's how you see real estate, too. If I want a ride, I click on Uber. If I'm hungry, I click on DoorDash. If I want just about anything else, I click on Amazon. If I need a listing to show to my buyer, I wait for the MLS to notify me. PING. Alert - new listing on Happy Hollow.
The time to swing into action isn't when you get the ping or the alert. The time to swing into action is when you secure the buyer. If your company promotes the use of agency and buyer consultation fees (which can be folded into the purchase price), those are two of the most direct ways to secure buyer loyalty.
If you have buyers and no inventory, use your property search to prospect for listings. We call it The Specific Buyer Approach. If your buyer loses out on a multiple offer negotiation, use the offers that didn't win to prospect for listings. (With the confidential information redacted out, of course.) And don't forget to show those offers to your local For Sale By Owner. We call that The Fistful of Offers Technique. For specific dialogue, tracks and techniques for each of those prospecting methods, check out The Vault.
Instead of waiting for listings to show up, show up for your buyers and take a listing for them. Be proactive instead of reactive and three terrific things will happen for you. First, you might get a listing. Second, you might find the right listing for your buyer. Third, and maybe most importantly, it sure beats sitting around waiting.
The Floyd Wickman Team blog by Mike Pallin
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