Lead Generation

Prospecting in a Low Inventory Market

Win in this competitive market by staying in touch with your sphere of influence through various platforms.

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Albert Gray delivered a speech in 1940 on finding the common denominator of success. During, he said, “The secret of success of every person who has ever been successful lies in the fact that they formed the habit of doing things that failures don’t like to do.” This statement is over 80 years old, yet it still provides valuable guidance for real estate agents in today’s market.

The low inventory market spurred by the pandemic is separating the wheat from the chaff and the agents that are finding success are the ones habitually doing things that other agents aren’t. Many agents are waiting for the market to shift or hoping a listing will fall in their lap, but this is wishful thinking. The only way to succeed in this sort of cutthroat market is to create a compound effect of repetitive engagement with your sphere of influence by consistently keeping in touch with them through different platforms.

This repetitive engagement may seem uncomfortable, time-consuming, and boring at times, but it will create the necessary momentum to find clients in this market. Here’s how you can get started!

Know your market better than anyone.

It’s safe to say most people know several real estate agents, so having extensive market knowledge is imperative to stand out. Make a habit of studying your local market every morning to see what properties have sold, the list price, the sales price, and how long they were on the market. Your goal should be to have enough valuable market insights to stand out in every real estate conversation you have with your sphere of influence.

Focus on your sphere.

According to a 2018 article, Tom Ferry said the number one place to find inventory in a low inventory market is from people you know. The pandemic has created a myriad of reasons to find better living situations, but most people don’t know they could get top dollar for their home and there are a lot of people looking to buy. It’s important to educate your sphere into action and show them why it’s the right time to sell because they don’t understand the market like you do.

Use your CRM.

A client relationship manager (CRM) is a database for everyone you know. These software systems allow you to track if and how your contacts are interacting with your business and create campaigns to stay in contact with them. All of your contacts should be entered into the CRM and you should aim to fill out names, physical addresses, emails, and phone numbers. When you think your CRM is complete, look again. Go through all of your contacts on your phone and social media to make sure you haven’t missed anyone. After you put all your contacts in your CRM, try interviewing a family member or significant other to see if they have any contacts you could add to your database. Eventually, this will become your living, breathing real estate business.

Develop your routine of engagement

Once you have developed a routine to stay up-to-date on the market and have a reliable database of your clients, it is time to start creating a compound effect of repetitive engagement. To create this compound effect, you should use a variety of mediums to consistently provide informational content to your sphere and make yourself available to any opportunities. Be omnipresent to your sphere of influence by using direct mail, text message, Facebook, Instagram, phone calls, coffee meetings, and happy hours to get your message across. Here are some action items to create a compound effect of repetitive engagement.

  • Send a comparative market analysis (CMA) once a day. This will keep your market knowledge up-to-date and could be the push for someone to sell.
  • Create a [Proof of Market][1] social media post or postcard. Consult your brokerage to find exciting examples of homes selling quickly or above the asking price to show concrete market information to your sphere.
  • If you post an article on your social media, make sure to include a caption about why it’s important to establish yourself as a resource to your sphere. Add value to your social media strategy by educating your followers with your market knowledge.
  • Be proactive on social media by spending ten minutes a day liking and commenting on your sphere’s posts. Make an effort to make sincere comments and interact with your followers. Create lists of your Facebook friends to make sure you stay in contact with certain groups like past clients or neighbors.
  • Send more direct mail. We have a variety of [pre-written letters][2] that can be instantly sent to your sphere and you can also start an [Automated Postcard Campaign][3] that will automatically send postcards to your sphere throughout the year.
  • Call somebody from your sphere and have a meaningful conversation once a day. After you speak with someone, update your CRM to remember what you talked about and to set a date to follow up.
  • Invite your friends to a Zoom happy hour to discuss the real estate market. Include information about current inventory compared to regular inventory and how that would affect a buyer or seller in this market. Share some stories to demonstrate your experience.

None of these action items are especially difficult, but it takes a top-tier agent to consistently employ these tactics and create that compound effect of repetitive engagement. If an agent wants to create business in a low inventory market, they have to provide multiple avenues for their clients to learn about how fast homes are selling in their area or how much homes are getting above asking price. Eventually, all the actions you take to reach your sphere will compile and reach a critical point where clients are approaching you with new listings and business. It’s all a matter of consistently doing things that other agents don’t to show your sphere you and the market are ready for them!

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