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In a hyper-competitive real estate market, agents, brokers and buyers are often working against the forces of rising home prices and interest rates, low inventory, and intense competition. It’s a recipe for customer frustration and burnout. And while some buyers—and sellers—may opt out of the market until conditions become more favorable, not every buyer or seller can afford to do so.
Right now, homeowners have less incentive to sell because of soaring home prices and the low, locked-in interest rates many currently enjoy. Demand is expected to continue to outpace supply in 2024, with high interest rates being a major factor. Experts predict no significant change in home inventory until interest rates fall to the low 5% range, which will likely not be in 2024. All of this means that owners who might consider selling are sitting tight and housing inventory remains at near historic lows, which especially impacts entry-level homes. But, as the sayings go, timing is everything, and everything has a price. And that means that motivated buyers, sellers and real estate professionals need ways to get around the dearth of homes on the market.
Meeting the Inventory Challenge
Innovative tech companies are developing proptech to meet the inventory challenge. For example, DropOffer introduced the first automated real estate-focused app for houses that are not on the market. The app lets agents and their clients submit offers to off-market homeowners and find homes using real-time data. It also lets seller’s agents and homeowners post their homes to solicit offers from active buyers in their areas. The idea is to offer more flexibility in a high-demand, low-supply market. Real estate professionals, particularly buyer’s agents, can use the app as a tool to expand inventory offerings and find clients their next home. DropOffer operates under the maxim that “the answer is always ‘no’ unless you ask.”
Even when market conditions are tough, people need to buy and sell homes. DropOffer is a solution-driven tool that opens up the millions of homes not on the market for consideration and can open the door to so many more inventory possibilities.
The Benefits for Real Estate Professionals
Making inquiries to homeowners who are not actively trying to sell their homes is not new to agents and brokers. They’ve been doing it for years via letter writing and even knocking on doors. What is new is that proptech can streamline the entire process, reducing the time real estate professionals invest in inquiries and making it easier for potential buyers to investigate more properties. Real estate professionals representing buyers can search almost any U.S. home by specifications such as bedrooms and bathrooms, lot size, and prior sale information and can send buyer-agent-branded messages to multiple homes on a specific street or in a targeted neighborhood.
DropOffer creates a market advantage for agents and brokers by creating more home buying options for clients with the ability to make offers on homes not currently listed electronically. It has the potential to establish a line of communication with the millions of homes that are not on the market, so buyers don’t have to settle for anything less than the home they’re looking to purchase. Agents representing sellers can also generate instant interest and feedback from active buyers to gauge the feasibility of selling a home, which can save the time and money needed to market a property.
Agents and brokers add value by providing expertise and guidance throughout the off-market search and transaction process. Proptech like DropOffer also allows agents, buyers and homeowners to seamlessly communicate using the app.
Trying New Solutions for Existing Challenges
New technologies are being developed at lightening speeds, and it’s important for real estate professionals to know what new tools are available to incorporate into their own businesses and expand the services they offer customers. Understanding what these new technologies can do for your business is essential.
The market forces agents, buyers and sellers encounter don’t change overnight, but the more tools real estate professional have at their disposal—often in the form of new proptech—the more creative and effective business solutions agents can offer to address the challenges buyers and sellers face. Low inventory is at the top of that list right now. Agent and brokers are there to help buyers and sellers find what they’re looking for and a tool like DropOffer offers more possibilities to find that perfect home.
References:
DropOffer, Online.
Rothstein, R.; C. Basile; “Housing Market Predictions for 2024: When Will Home Prices Be Affordable Again?,” Forbes, 25 April 2024, Online.
Yale, A. J.; “Desperate House Hunters Are Making Offers on Homes That Aren’t Even for Sale,” Money, 30 July 2021, Online.
Velt, T.; R. Westlund; “DropOffer Leaders Explain Partnering With Agents for Off-Market Inventory,” Real Trends, 2 May 2022, Online.
