How to win in today’s low-inventory housing market

The trending term “low inventory” is swirling around the nation like wildfire, and it’s just as pronounced if not more in the Sioux Falls market.

The Realtor Association of the Sioux Empire just published that inventory levels are down close to 15 percent from 2020 to 2021; however, closed sales are higher in 2021, if even by a fraction.

That is indicating it is still a great market to jump into. With the Sioux Empire’s growth pattern, housing prices certainly will keep going up. Right now, interest rates are still at historically low levels; waiting until next year to make the move very likely will have your home price be not only higher but your interest rate too, not allowing as much buying power.

But the inventory level does cause real estate transactions to be handled very differently from in the past. Now more than ever, it is vital to be working with a full-service real estate brokerage that is immersed daily in the every dynamic ways offers are being won. There is one thing for certain: This isn’t your grandpa’s or even your dad’s real estate market.

Buyers and sellers alike encounter an innate amount of risk in a real estate transaction. There are humans on each side of the transaction, each with different goals. With far more buyers than sellers, homeowners are selling their properties at levels far above market in a majority of price ranges with multiple offers as the norm.

Amy Stockberger Real Estate excels in negotiating multiple offers, not only securing the highest dollar but also mitigating as much risk as possible. Our system-centric process for collecting and presenting those offers to our sellers allows them to gain immense understanding over their options. We go over the risk and reward that comes with each offer as well as the leverage points we recommend to exceed their goals. One wrong turn or oversight could cost the seller thousands of dollars and slow the intensity of the buyer’s desire, resulting in lost dollars and fewer options for risk mitigation.

Negotiations need be handled very delicately for buyers, too, with such a lack of inventory. Maybe you’re a buyer and you’ve heard that escalation clauses are the way to go. Maybe you’ve been told or heard about writing a letter to the seller. Well, those used to be effective tools for securing offers. Guess what? Today’s market is so wildly different that we now are using more creative and unique tools to ensure our clients’ offers are getting accepted. I’d love to share them with you here, but I just can’t. It’s too competitive, and I need to give my clients every advantage.

Thankfully though, the market is doing what she does each spring and organically bringing more houses on the market each day. As I have said, I call the real estate market a “she” — that girl ebbs and flows and does what she wants for the most part, and we just price and negotiate within her parameters.

You need someone who lives in the market each day, who has a pulse on the ever dynamic flow of not only pricing your home correctly, but negotiating it to get you to the closing table. The same applies to competing as a buyer right now. You need a brokerage that is using every tool it has to win that multiple offer game for you.

Real estate always will be a relationship-based industry, and that is another way in which Amy Stockberger Real Estate excels; our client-centric approach ensures we treat each client’s goals like they are our own and ensure that we are of service before, during and after the real estate transaction. It’s how we’ve created clients for life for years and continue to do so.

We believe in that so much that we created our Home Support Team, which is comprised of trusted vendors we know our clients will need in all the seasons of homeownership. Our fabulous Home Support Team partners offer our clients the highest level of service just like we do.

 

We are proud to announce Showplace Cabinetry Design Center has joined our Home Support Team. This exceptional locally based company offers factory-direct cabinets and renew refacing in the greater Sioux Falls area.

They have a reputation for creativity and expertise. I personally can attest to that. Recently, I was lucky enough to partner with them on a project, and they exceeded my expectations. I brought one of their designers a piece I’d seen online and fallen in love with, and they were able to make it come to life, adjusting it greatly to fit my space but keeping the concept.

Their attention to detail, time frames and communication was impeccable, and I am so excited for our clients to get the same experience. Their finished product was stunning!

If you think your business would be a good fit for our clients, contact us to see if we can get you on our Home Support Team.

Also, just a little teaser here, but we soon will be bringing a new approach to advertising never seen in this area. It will allow us to advertise our listings, our buyer wants and needs, and our all-inclusive expertise service like no other. Stay tuned to my column in June for more details. Click here to be one of the first to be notified.

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