The following are a few methods that real estate brokers might proactively convince prospective homebuyers to put their houses on the market today. How to deal with a low-inventory market is a popular subject at Inman Connect. Using these 12 tactics, you may encourage prospective home sellers to immediately put their houses on the market.
1. Listing Hiding in Plain Sight:
Last year, how many potential customers did you overlook? The National Association of Realtors estimated that half of the buyers who came to them had a home to sell first. One listing is lost for every two leads ignored by real estate agents who do not follow up on every lead.
2. Overcome the Issue of Contingent Sales:
Owners who need to sell their present house to buy a new one will find an effective option in Knock’s Home Swap program. Home Swap gives homeowners a fair market value for their present residence while also enabling them to get a new mortgage on a new residence.
Homeowners can now buy their next house with cash out of their pocket. Knock covers up to $25,000 worth of repairs. Overage is paid to the property owner who sells for more than Knock had initially estimated.
Consumers purchasing newly constructed homes are increasingly turning to alternative financing. Instead of renting or taking out a bridging loan, buyers may stay in their present house until their new one is ready. The expenses of these services are much lower than those of most other programs since they make money from the fees associated with mortgages, escrows, and titles.
Look at Realty Austin’s “Buy Before You Sell Program” and their “Cash Bridge Program” to see how this strategy may work in your organization.
3. Recommendation-based marketing:
NAR’s Profile of Buyers and Sellers for 2020 shows that 67% of sellers either rehired their former agent or acquired a reference from a friend, neighbor, or family, despite the “threat” of iBuyers and Zillow. Most of your time and money should be devoted to converting leads from previous customers and others in your network.
4. The First Person to meet in person Wins:
Additionally, 77 percent of recent home sellers had only spoken to one real estate agent before putting their home on the market. For this reason, it is crucial to meet face-to-face at least once a month with your 150 most important contacts who are most likely to send you business or transact business with you, according to previous NAR profiles.
5. The ‘loyalty gap’ should be kept in mind:
89% of sellers stated they would employ their agent again in the future, according to the last NAR Profile of Buyers and Sellers. Due to a lack of communication from their agents, only 26% of those surveyed were able to complete the survey. Get in touch with your customers to reduce the risk of a “loyalty gap” in your firm.
Hello John, and welcome to the site. Sally Agent is the name. I would gladly pay for your coffee if you’d like it. What time of day works best for you, Friday morning or Saturday afternoon?
6. Keeping an eye on Social Media Profiles for Big Life Changes:
When a person has a significant life event, such as a wedding, pregnancy, divorce, death, or a promotion at work, they are more likely to relocate. To keep track of these events for prior customers and individuals in your network most likely to recommend your services, Lobb advised utilizing Facebook lists at Inman Connect.
Reach out to someone who is going through a terrible time, such as losing a loved one or divorcing a spouse. Be empathetic and helpful. It is not the right moment to talk about sales. As a reminder, the agent who is there when a client decides to sell has a 77% success rate.
7. Look for old, expiring listings:
This tried-and-true method has been around for decades and has proven effective. Look for expired properties in your MLS that have been on the market for one to three years. Check whether the property has changed hands over this period by checking public records.
If this is the case, you should get in touch with the owner and give a free appraisal of the property’s value. For the most part, homeowners are unaware of the steep rise in costs. Even fewer know about the many programs available that allow people to avoid having to sell their present house to purchase with cash instead of depending on a sale.
8. Boomer Migration is in Full Swing:
Although many baby boomers are opting to remain in their present homes as they age, many property sellers are downsizing or moving closer to their children to downsize or downsize. REI Source may be used to identify the owners of these properties (or any other list you’d want to build). To help you narrow your search, we’ve included the following three possibilities:
It is ideal to purchase a second house between 50 and 60. Earn a list of people in your database who are between the ages of 35 and 45 and who make at least $100,000 a year and contact them.
Homeowners over 60 with two-story houses or homes with more than 2,500 square feet of space should be your target audience. Many elderly people look for one-story houses because of mobility issues, while others want a “lock-and-leave” retirement lifestyle.
• Look for elderly ladies who own single-family homes, in particular. Because of their financial or other restraints, many people choose to live in a condo or a lock-and-leave property.
9. Remoting employees:
Owners of tiny condominiums and lofts that earn $100,000 a year may be found on REISource.com by searching for “owners of small condos and lofts.” Aim for sectors like technology, where workers can work from home even after the epidemic has ended, if possible.
10. Non-owner Occupied:
As far back as the mid-1990s, I began teaching this method to my students using printed books and microfilm. While learning the ropes, one of my new agents came upon a single-family rental and went in search of the owner. He didn’t own any other properties, so she ran another quest to be sure. It was discovered that he owned a total of 12 rental properties.
Compare this to a typical homeowner who only moves every ten years. There are 20 times as many transactions with an investment customer as there are with single-family owners. Non-owner-occupied properties may generally be found on a list provided by your title firm.
When you approach this type of investor, ask if it’s time for them to do a 1031 exchange into a different property to take advantage of the low-interest rates and maximize the depreciation they can claim for tax purposes.
11. Rental Expired might be a Good Source of Leads:
As Greg McDaniel has discovered over the years, this approach is a game changer for his firm.
• First, send a postcard to both the renter and the owner approximately two months before the lease ends to discuss down payment assistance to help them become homeowners instead of tenants.
• Second, prospect rental listings of the owners who are more inclined to put their properties on the market. To find out whether they want to sell or perform a 1031 exchange, reach out to them directly by phone or in person and provide them with the latest market value information.
12. The ‘under contract’ Opportunity:
The general public does not often have access to this information, despite the fact that the Multiple Listing Service (MLS) allows you to monitor when a property is placed under contract. For this reason it is best to phone 100 nearby properties when you observe a property go under contract.
Make it clear that you’re calling to inquire about the final selling price of a nearby home that has been placed under contract and are wondering if they’d want you to contact them after the deal is closed (provided this is legal in your state).
A postcard campaign that reads, “We’d love to hear from you!” might also be an option “The sale of a nearby property has just been finalized. Get in touch with me if you’d like to learn more and learn how much your house is worth right now.”
As Lobb and Staub highlighted at Inman Connect, one way to convince homeowners to sell their homes with you is to appeal to their immediate requirements, desires, and any discomforts they may be experiencing as a result of their existing living arrangements.
In addition, make it a priority to maintain frequent face-to-face touch with your previous customers and other influential individuals in your orbit. When they are ready to list, you want to make sure that you are the person they have interacted with face-to-face the most lately.