Low-listing inventory across the nation forces agents to use bold marketing strategies that message to potential sellers. Although competition among buyers remains high, more millennials are expected to make the switch to homeownership in 2021.
Low Inventory Forces Bold and Daring Marketing Strategies
- Listing inventory is down 20 percent compared to last march, causing competition among prospective home buyers in multiple offer situations.
- With twice as many working real estate professionals as available listings, competition erupts among agents as well.
- Some agents are generating inventory by doing property searches on homes not listed. After the buyers handpick homes, their agent drafts a letter to the homeowners, asking if they would consider selling. The assumption is that some homeowners don’t know how much their house has appreciated, and with just a little prompting, would consider selling.
- Agents are trying to create more interest in selling to increase the listing inventory by messaging to potential sellers. Through multiple media platforms, agents inform homeowners that now is a great time to sell, going so far as to advertise the criteria that current prospective buyers are looking for
Some intense competition is going on right now as the listing inventory is down 20% compared to last march and there are twice as many real estate professionals as available listings.
So as buyers fight multiple offer situations the agents fight for control over the limited inventory.
One way the agents are trying to generate inventory is by searching for homes that aren’t even listed and meet the buyers criteria. When the buyer finds one they like, The agent drafts a letter to the homeowner, asking them if they would consider selling. Assuming that some homeowners don’t know how much their house has appreciated, and with just a little prompting, would consider selling.
Some are even trying to create interest by messaging to potential sellers through multiple media platforms, informing homeowners that its a great time to sell and advertise the criteria the prospective buyers are looking for.
The Renter Generation Transitions to Homeownership
- Millennials are expected to shed their reputation as renters and enter the home-buying arena, with more than 4.8 million millennials turning 30 this year.
- Millennials aged 30-40 are entering the life-phase that is typical of first- or second-time buyers.
- First-time buyers are open to multi-family properties, such as condos with the intention of building equity, knowing their first home will likely not be their dream home.
- On the other hand, older millennials and second-time buyers will likely have different goals, such as finding more permanent homes to settle their growing families in.
- Overall, millennials will continue to represent a large portion of homebuyers this year.
Millennials have a reputation as renters and they are looking to turn in their sweat pants for some khakis and enter the home-buying arena, with more than 4.8 million millennials turning 30 this year. Not all of them want to play call of duty in someone else’s basement forever.
The life -phase of millennials between 30 and 40 years old is typical for a first or second time home buyer and because first time home buyers understand that their first home won’t necessarily be their dream home. They are open to multi-family properties like condos or townhomes so they can build some equity.
On the other hand older millennials and second time home buyers are likely focused on a more permanent residence to settle their growing families.
Overall millennials will continue to represent a large portion of the home buyers this year.
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