How to Secure Listings in a Competitive Market

PropStream: Your Resource for Real Estate Data Software

Did you know that there are currently more real estate agents than listings in the United States?

With a limited supply of homes and a surge in demand, buyers are experiencing intense competition, driving home prices up at rates not seen since 2007. So, what factors contributed to this spike, and how can agents continue to secure new listings in such a tight market?

Here’s what you need to know about attracting more sellers and expanding your inventory.

The Pandemic’s Effect on the Real Estate Market (Hint: It’s a Seller’s Market)

The current housing shortage began in 2020 when pandemic-related stay-at-home orders halted new construction. With builders unable to keep up, the existing housing stock couldn’t meet the increasing demand from eager buyers. Even after restrictions were lifted, construction delays persisted.

This imbalance of low inventory and high buyer demand has created what’s known as a “seller’s market.” In such a market, escalating demand leads to soaring home prices and bidding wars as new properties come onto the market.

Moreover, between 2020 and 2021, interest rates hit historic lows, averaging around 3.7% for a 30-year mortgage. These low rates encouraged many buyers to jump in before rates rose again.

Fast forward to 2022: the seller’s market persists, with 400,000 fewer affordable homes available for households earning between $75,000 and $100,000 compared to before the pandemic. While the homeownership rate has remained stable, total home values across the nation have surged by approximately $8.1 trillion, keeping prices high.

As interest rates rise again (currently around 5.2% for a 30-year mortgage), buying a home continues to be a challenge even two years into the pandemic. With limited listings available, agents find themselves vying for the same few properties.

So, how can agents navigate this challenging landscape? It’s time to get creative in generating listing leads!

The Importance of Off-Market Inventory

Finding off-market properties is crucial for maintaining a steady pipeline of listings.

You may be surprised to learn that many homeowners in your area may be ready to sell but don’t know how to start. These homeowners could be overwhelmed, facing financial challenges, or managing distressed properties. Some might not even be aware of their home's value, highlighting the need for a knowledgeable real estate agent.

By identifying and reaching out to these potential sellers, you can secure valuable listing leads, regardless of market conditions. Additionally, if you have a buyer struggling to compete, off-market listings could help reduce competition.

Harnessing Real Estate Data for Off-Market Opportunities

Finding motivated sellers in your community doesn’t have to be time-consuming. Instead of knocking on doors or sending out countless postcards, you can locate potential sellers directly from your computer.

Real estate data software allows you to quickly and efficiently identify listings. With advanced filters, you can target homeowners based on criteria that suggest they may be looking to sell.

Four Indicators of Selling Motivation

Here are four common situations to consider when using real estate data:

1. Pre-Foreclosure: Homeowners facing pre-foreclosure have likely struggled to keep up with mortgage payments and may be eager to sell to avoid further issues.

2. Pre-Probate: When a homeowner passes away, their property may be left to relatives who might not be able to maintain it or afford it.

3. Vacant Properties: Owners of vacant homes often have little reason to hold onto them, making them prime candidates for a sale.

4. Bankruptcy: Homeowners in financial distress, often filing for bankruptcy, may prioritize selling their home to alleviate their largest monthly expense—mortgage payments.

Keeping Your Pipeline Full in a Hot Seller’s Market

The pandemic has transformed the real estate landscape, leading to low inventory, rising prices, and increasing interest rates.

With more agents than properties available, it’s vital not to rely solely on the same listings as your competitors. By utilizing comprehensive real estate data software, you can discover new leads from the comfort of your home, ensuring you always have a potential listing ready.

Want to explore real estate data software? Try PropStream free for 7 days!

About PropStream

As a leader in real estate data software, PropStream provides the essential datasets and marketing tools to enhance your lead generation process! Easily find off-market properties and secure listings.

With over 120 search filters and 12 Quick Lists, you can refine your search and access detailed data on over 153 million properties nationwide. Our regularly updated, multi-sourced data from MLS and public records ensures you have the most accurate real estate information available.