Create Inventory In Your Market (Step-by-Step Instructions)

Simple Strategy for a Complex Time

We’re doing things a little differently today because I’ve got something very special for you.

Stick with me because I promise it’s worth it.  I want to show you how you can generate listings utilizing your past client database.  I know it sounds a bit counterintuitive but follow me on this.

The Rub

The biggest challenge for all of us right now is low inventory, as there are plenty of people who own homes with extremely low interest rates. They think it makes no sense for them to sell their home, only to take on a much higher rate. 

The Skinny

Your strategy as a loan originator in this current time should be to create a meaningful and systemized approach for calling past clients to talk to them about their current home situation.

People make buying and selling decisions based on two factors. They make them based on their perception of value, and they make them based on personal emotions. I want you to think about that because when data is combined with emotion, it will oftentimes result in a consumer’s decision to “move up” and improve their current situation.

The Approach

If I were originating in this market, I would call three to five people a day and have a meaningful conversation with each of them. The conversations would start off with checking in to see how they’re doing and then I’d move to the following:

The Script

“Tell me a little about the house we put you in three or four years ago."

"How is it serving you?"

"Is your family happy there?”

Stop. Listen. Allow them to share, paying attention to anything they may not like about their home. If they say their home is perfect and they intend to live there for another ten years, so be it. But a lot of people will give you reasons why their current home is not their dream home. 

“If you could paint the ideal scenario for your home situation, what would that look like?"

"Tell me about your dream home?” 

Understand you’re getting them to dream, getting them emotionally attached to a better situation.

Stop. Listen. They are going to share desires such as living in a better school district, or closer to parks. Maybe they want a bigger backyard, one with a swimming pool. Maybe they’re working from home now and they need a home office. Regardless, let them talk about the things they’d rather have.

“How much would be willing to pay extra every month to have your dream home?

"The one you just described to me.”

 Stop. Listen. While they may not have an exact figure, they may share a ballpark figure.

“Have you thought about listing your current home and moving forward to find your dream home?”

There’s a good chance you’ll get a response based on their understanding of the current interest rates, and how they’ve already crunched the numbers and determined it’s not going to work. 

“I understand what you’re saying but I think you’re operating off only some of the information. Oftentimes, the numbers aren’t what you think they are. I’d like to do an analysis for you.

"I think you may be a lot closer to having that dream home than you may realize.”

The Data

Now it’s time to show you how I’d go over the numbers with my client. Explaining it here in writing is a bit cumbersome, so I’ve prepared a step-by-step screen share as I go over the presentation to the buyer.  In the video, I share my screen with you and lay out an example of a data analysis you can use today.