These days, if you spend any time on Facebook groups for realtors like Lab Coat Agents, you will constantly hear the same complaint: "I have plenty of buyers but no homes for them!" Okay, then, come on in! Homes in Colorado sell the first weekend they are listed because there is a shortage of inventory, unlike any other time. Any buyer agent would want to give up after hearing this.
For their desperate buyers, our representatives employ a 10-step search strategy. I'm letting you in on our strategy for looking for properties because I want each and every one of you to be successful.
1. Start Team Meetings With A List Of Internal "Wants & Needs"
Posting to our internal "Wants and Needs" list is our initial step in locating homes to show desperate purchasers. Our team and brokerage have a private Facebook page where realtors list the features their buyers are searching for in a home.
We also go over our clients' "wants and needs" at our weekly team meetings in order to cast the widest net possible. This helps listing agents remain mindful of the demands of our buyers. Our listing agents will already have appointments scheduled from the list when a new listing enters the market.
We refer to this as a "Love Connection" if we can match a fresh listing with a buyer from our list of "wants and needs"! But we don't stop there. We go out to other agents in our network if a match isn't made through our brokerage and team.
2. Get In Touch With The Best Real Estate Brokers
For purchasers who have a house to sell or a little down payment, this method works wonders. The key is to gain entry to properties before there is intense competition for them via the MLS.
To start, we seek the top realtors in the particular neighborhoods where our purchasers want to dwell. We instruct our buyers' agents to check the MLS for homes sold over the previous six to twelve months because we frequently are unaware of who is selling the most homes in any specific region.
The list is then sorted by the name of the listing agent. The names will be consolidated and it will be clear who has sold numerous properties nearby. With this knowledge in hand, they can ask the local listing agents who have sold a number of homes in the neighborhood if they have any impending listings that might suit our buyer's requirements.
Local real estate experts frequently represent homeowners who are prepared to sell their houses in the coming months as well as those who would sell their homes if they received an offer they couldn't refuse.
Even before they have signed a listing agreement, the intention is to make their selling client an unbeatable offer. For purchasers with conditions and unique situations, this strategy is fantastic. In fact, I used this method to purchase two homes myself!
3. Prospect Old Expirations, Not New Expirations!
The next task for our team is to look for homes that have been taken off the market and expired listings. Some listings fail to sell the first time around, even in the market's low inventory environment of today.
Start by looking for homes that have expired in the last three years on your MLS. Older expired listings are frequently from sellers who couldn't receive the price they desired. Prices have increased so much in the past year that the outrageous sum they demanded two years ago would not be as outrageous now.
Ask the listing agent if they are aware of any upcoming re-listings of properties if a listing has just expired or been removed.
Call them yourself if they are older or expired. The good news is that owners of older expired listings do not experience the 20 calls per day from frantic real estate brokers that are usual for recently expired listings. As a result, they are far more likely to pick up the phone and are much more enjoyable to speak with.
4. Include A Backup Clause In Backup Offers That Is Drafted By An Attorney
To locate your buyers a house in today's market, you must be aggressive, inventive, and BOLD. Don't be hesitant to make a backup offer on a house that is already under contract if your buyers adore the neighborhood or the property.
A winning bidder in a bidding battle may feel they overpaid and suffer from buyer's remorse as a result of the high price. As a result, we are now observing more contracts ending soon after the contract is confirmed than in the past. We instruct our buyer's agents to encourage their customers to make backup offers on popular houses because of this.
We have a robust backup clause, drafted by an attorney, that enables their client to cancel the contract before taking the lead, protecting our customers and allowing them to continue shopping. Both home builders and fix-and-flippers can benefit from this strategy.
5. Begin Knocking On Doors With Your Rejected Offers And A Script
You probably have already made (and rejected) at least a few offers if you have been working with your buyer for more than a few weeks. Both you and your customer could feel devastated by this. Prospect around your most recent offers to change that gloomy day into a fantastic triumph!
Print the offer your clients just made, then pick yourself up and gather your thoughts. Then, start knocking on doors in your neighborhood to find any other potential sellers who could be considering selling soon.
Go door-to-door and inform the neighbors that you have a motivated buyer who just made an offer but missed out on the house down the street while carrying your (redacted) offer. Inform them that your consumer is determined to live in the area because they adore the neighborhood's and the residences' architectural styles.
6. Use A Flip To Exchange Your Buyer's Contingent Property
Finding a house for a contingent buyer is one of the largest issues our buyer's agents confront. These are customers who must first sell their house in order to purchase. When the house they need to sell requires extensive repairs, this situation becomes even more difficult.
Last October, one of my seller clients experienced precisely this. They had a house in a nice neighborhood, but nothing had been done to it in over 20 years. They searched the neighborhood for a house with additional bedrooms that had already undergone a comprehensive renovation.
My plan was to find them a newly flipped home because the houses in the neighborhood were all constructed in the 1960s and 1970s. I got in touch with the local fix-and-flippers and asked them if they were looking for a new fix-and-flip project using the seller's house as bait.
Several flippers showed interest in my seller's home because they were desperate for inventory. I informed them that in order to purchase my client's house, they would need to sell my client another house that was about to hit the market. After some effort, we were able to arrange the acquisition of a newly renovated property with the condition that the flipper would pay a fair price for their home. A great win-win situation!
7. Potential FSBO Listings
The buyers' agents on the EmpowerHome Team are required to call FSBOs, which is unheard of! If you've been selling real estate for longer than a few months, you might also have noticed that these sellers are consistently fair, kind, and enjoyable to work with.
That might not always be the case, but when you get in touch with FSBOs, you'll find that the majority of agents ignore them. They believe that these homeowners have no desire to advertise their house with a broker.
In actuality, they are content to pay a commission to an agent who successfully finds a buyer for their house. You won't know until you pick up the phone and start cold phoning homeowners who have posted their own homes for sale, but that could be your buyer.
8. Rental And Short-Term Prospect Ads
A wonderful technique to find homes for your desperate buyers is to call the "Home for Rent" and "Short-term Rental" advertisements. Why? since there may be a lot of investors looking to sell in this competitive market. Some investors might be eager to sell their investments at what they believe to be the market's peak due to rising interest rates and general economic concerns.
I am a real estate investor, therefore I would be interested in selling if I didn't have to spend the time staging a rental property. Making a home "rent ready" differs from making it "for sale ready."
A house that is "rent ready" can include a neutral gray carpet, matching trim, and white semi-gloss paint. Better features are needed to make a house "for sale ready," such as beautiful laminate flooring and gray walls with dazzling white trim and doors. Many landlords are reluctant to risk upgrading a home to make it "for sale ready" only to discover that they didn't get the price they desired.
Investors might not be aware of the fact that many purchasers are willing to pay almost the same price for outdated houses as the recently refurbished rivals in this low inventory market. As a result, the present is an excellent opportunity for an investor to sell some inventory without having to spend the time and money updating their property.
Our group calls the VRBO, Airbnb, and for-rent listings to see whether an investor is prepared to sell. If that doesn't work, you should try to convince the customer to change his mind about some of the potential stones. In the worst situation, you may have discussions with local landlords that result in potential future business.
9. Encourage Your Clients To Think About Older Listings
The agents on our team don't lose up even if we haven't yet located a house that meets the requirements of our buyers. They then advise their clients to take another look at the older listings (listings that have been for sale for longer than seven days).
These homes might not be priced as well, or they might even be slightly overvalued given their state, but with a little persuasion, you might be able to convince the seller to reduce their asking price.
The essential thing is that your buyer will be able to stop paying rent and start creating equity, even if they have to wait a few more years for the Instagram-worthy kitchen or yard.
After all of this, if you still don't have your prospective buyer in a home, it's time to seek elsewhere.
10. Provide "Turf Tours" of Other Neighborhoods to Your Buyers
Although I'm sure you've considered it, you might not have had much luck persuading a recalcitrant buyer to consider other options. I'd like to assist you with that, though! Customers typically purchase goods where they are most comfortable. They may choose to invest in a developing, trendy neighborhood or just wish to live close to their place of employment, children's schools, and/or favorite stores.
If the region they choose is far more expensive than their budget, this may be challenging. Some buyers would admit they would prefer to rent than ponder leaving their familiar surroundings. This can be a very costly error because homeownership is what will allow them to accumulate enough equity to one day afford to reside in the community they prefer.
Ask them how they can live a similar lifestyle in a more reasonable region if they claim they want to live in a particular area because of the recreation and lifestyle.
Our staff leads "Turf Tours" to encourage clients to think about alternative locations. We first invite them to ride along with us. (In the same car, yes!) "I have a place I'd like to show you," we say. I just have one requirement. I won't tell you where it is until we've seen the neighborhood and a few houses.
They'll typically say they're curious. You must keep in mind that you are a consultant, not an order taker, in order to be successful at this. The customers outline their goals and the reasons they have for doing so. It is your responsibility to act as a consultant who directs them toward achieving their objectives.