The housing market is never stagnant, and it relies on so many components that it is often difficult to even make accurate predictions. In recent years, the lack of single-family homes being constructed out in the suburbs has become a growing concern for realtors. While homebuilding has increased sharply recently, it is certainly not enough to meet the demands of families. As a realtor, this has likely become an issue you are tracking.
According to the National Association of Realtors, consumers prefer single-family homes in the suburbs. Unfortunately, these homes are not as easy to find as they once were. Inventory is declining, and new homes with great prices are increasingly difficult to find.
1. Encourage buyers to have their finances in order.
With a shortage of homes on the market, it is all the more important for your prospective buyers to repair credit and gather a solid down payment. Pre-approval for a mortgage also puts buyers in a better position to actually buy a house.
2. Discuss the necessity for compromise.
With a shortage of homes being constructed, it follows that there are fewer options. Talk to your clients about creating a list of qualities that they would be willing to compromise on followed by a list of qualities the house absolutely must have. It may be easier to find a home when the buyers realize that compromise is essential to finding the right fit.
3. Tell buyers to make their best offers.
When housing is not readily available, making a solid offer early on is essential. Your buyers are likely to be passed over if they make a low offer that will be easily beaten by somebody else just as passionate about owning the home.
4. Look for expired listings.
Listings that have just recently expired or been withdrawn may not be totally off the market, and you may be able to alert your buyers to these listings so that they can make fair offers. Many of these listings simply have yet to be relisted, and other times the seller may just be looking for a better offer than what they received.
5. Don’t be afraid to look at houses you consider overpriced.
Just because your buyers thought a home was overpriced in the beginning of the search does not mean they still think that way. Sometimes placing a fair offer on an overpriced house will encourage the sellers to consider accepting less than they originally intended to.
The shortage of new homes is certainly going to influence your approach to selling homes in the coming years. With the demand increasing, it is possible that the supply will improve as well. Contact us for more information about real estate training and education.