How to get investment sales listings in low inventory markets
Low inventory has been a national phenomenon not just an NYC issue. With concerns mounting that real estate prices have peaked following six years of record-shattering sales growth, signs of overbuilding in cities such as New York, and a decrease of inventory, how do investment sales brokers find sellers when owners aren’t selling?
In low inventory markets, brokers encounter two types of owners:
- Sellers who are experiencing a growth in equity and may not be under the pressure of a mortgage.
- Buyers who face a huge inventory shortage and might make competitive offers on buildings only to keep capital moving.
Despite current challenges, low-inventory markets present a huge opportunity for real estate brokers. But how do brokers find sellers? Follow these 5 tips and with some creativity, hard work, and persistence, you’ll increase your visibility, marketing, and listings.
1. Contact Previous Buyers
Buy & Sell owners that acquire assets to move capital typically have a holding period, a length of time an asset is held. If an asset is subject to a mortgage, the length of term can range from 10, 15, or 30 years. Prior to the maturity of the mortgage, contact the current owner to better understand their real estate needs and strategy. Check out Falkon Property Reports, a free report on building and ownership information. Contact these buyers to build a line of communication and trust. Some of them may be in the recapitalization process, a process of revising a payment schedule for repaying debt, or is looking to acquire or sell.
2. Search Falkon Contact Owner®
Have you checked out Falkon’s Contact Owner functionality? The Falkon Contact Owner functionality — Make An Offer feature allows brokers to contact owners and indicate a price that would make them sell. You can use the Contact Owner feature for a variety of reasons. Perhaps potential sellers are not quite ready to sell, but are testing the market. Perhaps it’s their dream price. Some sellers can be unrealistic in their pricing, but regardless, they are exploring the possibility to sell.
3. Recent Transactions
Filter your search results and narrow in on properties that have recently transacted to find active buyers with the Falkon Sales Comps feature. This is an opportunity to build your book of business and network with active buyers.
4. Canvas and Knock on Doors
The best way to know your market or territory is to walk the streets. Canvassing and knocking on doors will help you better understand owners, managers, tenant mix, and unique qualities of your territory. You will learn vital information on the inner workings of a building like, what time the superintendent puts out the trash, when owners/managers inspect their buildings, and more.
You can download the Falkon App or use the Falkon mobile website to canvas owners and buildings by neighborhood. By having Falkon on your mobile phone, you will be well prepared to answer and provide a unique and valuable perspective on the owners building and neighborhood trends instantly.
5. Find Off-Market or Pocket Listings
In New York City, real estate brokers regularly network with each other regarding potential deals. Some brokers share off-market opportunities with each other aka “pocket listings”. Besides working with a well-connected brokers to co-broke a listing, this is your opportunity to learn about the seller and their real estate needs.
Bonus Tip: See who's looking at your listing
All brokers should track and measure the performance of their listing. If you can measure your listing, you can improve upon its performance. Check out Falkon Analytics to see your listing analytics and who's looking at your listing. Download your listing analytics and contact information of people looking at your listing to build your book of business.
Real estate is a people business. Be proactive about making new connections, smart about using data and hungry to get more business.