What You Need to Know About Inventory in the 2021 Real Estate Market
If you’ve been checking up on the latest real estate news, you’ve probably seen quite a few reports saying that housing inventory is low at the moment. Understandably, this can be unsettling for agents seeking out a new listing or helping a current buyer find their dream home at a reasonable price.
However, with 80 million households in this country, the fact of the matter is that there’s no shortage of housing inventory. What really exists is a shortage of listed inventory.
How Did We Get Here?
One of the reasons for this listed inventory shortage is that in recent years, agents have taken a more passive approach to the business. Without a proper business plan, they get wrapped up in non-essential activities like chasing online leads and putting out those little fires that pop up throughout the day. This pulls focus away from building valuable skills like developing a listing in the current market, which requires a proactive strategy. The expectation is that the agent will be able to easily find what their client wants, show a few homes and then lock in a sale. When that doesn’t happen, disillusionment and frustration set in.
Give Potential Sellers a Push
Even in this market, the inventory is out there. You just have to go and get it! The key to success is a radical shift in mindset. Agents must be proactive and become inventory creators, instead of waiting for the inventory to come to them. If you can’t find the homes your clients are looking for, scout suitable neighborhoods for properties with the required features. If you spot something that might work, write the homeowners a note to tell them that you may have a buyer for their home. Keep the letter short and sweet and make it personal, attaching your contact details so they can quickly get in touch if they’re considering a move. Getting correspondence from a proactive agent like you could be the nudge they need to start the process.
Exceptional Skills Are a Must
In these unprecedented times, people need to know that they’re dealing with a highly skilled professional who can deliver. As a proactive agent, you are dynamically demonstrating your skills: canvassing the neighborhood and showing clients that you’re ready, willing and able to do the necessary legwork to get them the home of their dreams. It’s important to incorporate this hands-on approach into your business plan to create your own inventory.
The Market is Hot
2021 is going to be a record year for real estate. There’s a tremendous amount of pent-up demand and a lot of opportunity coming down the line, but you have to make it happen by encouraging people to put their homes on the market and by helping them to find the next one. That means getting out there and shaking the bushes! Change your mindset to a proactive one and you will create your own inventory and close plenty of sales in the coming year.
For more 2021 real estate market trends and what you need to know to build a profitable business that lasts, check out my Bold Predictions broadcast on Tuesday, Dec. 8, at 9 a.m. PST. I’ll be joined by Lawrence Yun, chief economist at the National Association of REALTORS® to identify trends to watch in 2021 and how agents can get ahead. Register now to secure your virtual seat for the free broadcast!
