Navigating in a Low Inventory Market
Posted By: Rachel Kavanagh
February 12, 2024
In the ever-evolving landscape of the real estate market, professionals and clients alike must adapt to the prevailing conditions. One such challenge that has become increasingly common is navigating a low inventory real estate market. We here at RE/MAX All-Stars Benczik Kavanagh Real Estate Team understand the concerns and uncertainties that may arise in such situations. In this blog post, we’ll explore the benefits of navigating through a low inventory market and discuss strategies for both homebuyers and sellers to achieve success.
For buyers, navigating a market characterized by high demand and rapid decision-making can be exhilarating yet stressful. At the Benczik Kavanagh Team, we strive to alleviate this stress by providing exclusive access to properties not readily available to all buyers. How do we achieve this? Here are some of the resources we leverage to find homes for our buyers:
- Off-Market Listings:
- These are properties not publicly advertised. The Benczik Kavanagh Team actively searches for homes that owners are willing to sell but haven’t listed on the open market.
- Coming Soon Properties:
- Properties that are not officially on the market yet but are known to be available soon. This early awareness allows buyers to get a head start.
- Exclusive Listings:
- Access to listings that are exclusive to the Benczik Kavanagh Team, providing buyers with unique opportunities that might not be available through other channels.
- Door Knocking for Properties:
- The Benczik Kavanagh Team proactively visits specific neighbourhoods, knocking on doors to identify potential sellers who might not have listed their homes but are open to offers.
- MLS (Multiple Listing Service):
- A comprehensive database of properties listed for sale, including details like square footage, number of bedrooms, and photographs. The Benczik Kavanagh Team leverages their network and technology to gain early access to these listings.
Sellers, on the other hand, have the advantage in a market with low inventory. The Benczik Kavanagh Team, with over 30 years of experience, employs strategies to help sellers consistently achieve record-breaking results. Our step-by-step process is designed to maximize the probability of success. Here’s a breakdown of how it’s done:
- Home Preparation and Decluttering:
- Ensure the property is visually appealing by decluttering and making necessary repairs. First impressions matter, and a well-maintained home stands out.
- Minor Cosmetic Fix-ups:
- Address minor issues or outdated elements that could detract from the overall appeal of the property. This could include fresh paint, updated fixtures, or minor repairs.
- Professionally stage the home to showcase its full potential. Staging helps buyers envision themselves living in the space and can significantly impact the perceived value.
- Digital Platform Utilization:
- Embrace modern marketing techniques, including high-quality photos, drone footage, and aerial views. Utilizing a digital platform enhances the property’s online presence, attracting more potential buyers.
- Strategic Pricing and “Auction EffectTM” :
- In a low inventory market, our “Auction EffectTM” system involves strategically pricing the property below market value to stimulate competitive bidding. This approach aims to create urgency and maximize the final sale price.
- The Power of Social Media:
- With fewer listings available, it’s essential to maximize exposure and create buzz around your property. By utilizing visually appealing content, targeted advertising, and real-time engagement with interested buyers, sellers can stand out in a crowded market and increase their chances of attracting qualified offers.
In a low inventory market, such as the one we are currently experiencing, the Auction Effect becomes a pivotal pricing strategy. However, it’s crucial for the seller to feel comfortable with the process. Here’s the formula for achieving Record-Breaking Results:
The Formula a + b + c + d + e = Record-Breaking Results
(a) Presentation: The property should be in showroom condition, meticulously presented to create a positive and lasting impression.
(b) Holding Offers: Clearly state the offer date and time on the listing, creating a sense of urgency and encouraging competitive offers.
(c) Accessibility: Market time is condensed from 30 days (on avg) to 7. It Is important to accommodate every showing.
(d) Marketing: Have all marketing materials, including photos, videos and social media campaigns ready for a coordinated MLS launch, maximizing exposure from the start.
(e) Artificially Priced Below Market: Despite potential concerns, pricing the property slightly below market value can drive the auction process, attracting more interest and potentially leading to higher offers.
THE REAL ESTATE CATCH 22
In a low inventory market, families often consider buying before selling, leading to the Real Estate Catch 22. The dilemma is whether to buy first, risking owning two homes, or sell first, potentially settling for a less-than-ideal property. Introducing the Benczik Kavanagh Team Guaranteed Sale Program – a stress-free solution. Within 24 hours of listing your home, we offer you a written guarantee. Should your home not sell within 90 days, you simply exercise the provided guarantee. Purchasing with the Benczik Kavanagh Team ensures the sale of your home, granting peace of mind throughout the entire process.
While navigating a low inventory real estate market may present challenges, it also offers unique opportunities for both buyers and sellers. By staying informed, remaining flexible, and leveraging professional expertise, individuals can position themselves for success in achieving their real estate goals. As dedicated real estate agents, we are committed to guiding clients through these market conditions, ensuring a seamless and rewarding experience in the dynamic world of real estate.
“We took the Benczik Kavanagh Real Estate Team Guaranteed Home Sale Program to the bank!
We wasted three months with another agent who couldn’t sell our house while we had already purchased a new home. Not listing with the right agent first cost us the stress of keeping our house in showroom condition and the daily worry that it wouldn’t sell and we would lose our new home.
The Benczik Kavanagh Real Estate Team Guaranteed Home Sale Program gave us peace of mind. We were able to take Leslie Benczik’s guarantee to the bank to close our new home.”
ROBERT & CHAUNTELLE W., MARKHAM