As brokers, we know that real estate markets across the country are anything but constant. Some regions are struggling with declining demand or shifting inventories, while others, like my market in Lehigh Valley, Pennsylvania, face an entirely different set of challenges.
TAKE THE INMAN INTEL SURVEY FOR JULY
With our proximity to New York City, we’ve become what seems like one of the hottest markets in the country. Currently, we’re 9,000 units short, and by 2030, that deficit is expected to rise to 25,000. Each new listing here generates more than 80 showings within five days and often attracts 20 or more offers. This isn’t a short-term post-COVID boom; it’s been our ongoing reality for several years now.
For brokers in hypercompetitive, low-inventory markets like ours, the challenges can feel overwhelming. But the opportunities are equally significant if you know how to approach them.
From ‘must-haves’ to ‘must-win’
Our buyer agents have to be truly immersed in our market. Buyers often come to us with a list of “must-haves,” including a specific number of bedrooms, certain contingencies and home inspections. But after losing several bids in a row, their approach inevitably changes.
My agents have had to shift their messaging with clients, from “Let’s find you a home” to “Let’s win you the house.” It’s no longer just about finding the right fit; it’s about grabbing the opportunity when it arises. Buyers are beginning to understand that, in a market like this, what they’re buying isn’t just a home for today, but a chance that may not come again anytime soon.
The education and recalibration involved in this process are critical to my agents’ success. As buyer agents, they must constantly educate and remind clients of the realities of today’s market. This requires patience, persistence and the ability to keep clients motivated without overwhelming them. It’s not easy, and burnout is real, but it’s essential for keeping buyers engaged and focused.
Innovating in a supply-constrained market
When traditional inventory is unavailable, we need to be creative. Here’s what’s been working for us:
1. Tapping into the rental market
In years past, dealing with tenants wasn’t always seen as the most glamorous part of the business. But in a market like this, working with renters is a smart move.
Many of my newer agents are focusing almost exclusively on rentals, helping clients secure rental properties in a competitive market. It’s a steady income and, just as importantly, it builds long-term relationships with future buyers.
These tenants will eventually look to buy, and when they do, they’ll remember the service you provided.
2. Expanding property management
As new listings slowed, we expanded our focus to include a property management division, diversifying revenue and stabilizing cash flow. We currently manage over 500 doors, creating a steady income stream that helps offset the volatility of sales.
While margins in rentals can be tight, property management offers reliable, recurring revenue at scale. We’re growing this segment organically by expanding from within, leveraging our existing agents, clients and local landlord relationships to add more doors.
Though acquisitions are still on the radar, current conditions make this organic approach more profitable and sustainable.
Mastering the fundamentals
With transactions moving at lightning speed, it’s easy to get caught up in the rush and forget about the core skills that got us here in the first place. In this market, those skills are more important than ever. Here’s what I’m emphasizing with my team:
Investing in training and prospecting
The agents who thrive in markets like this are the ones who never stop prospecting. We hold weekly workshops and one-on-one mentoring sessions to reinforce this. The lesson is always the same: Never stop expanding your sphere.
We’ve all seen how online leads and “easy sales” can make us complacent, but when that stream dries up, agents who haven’t put in the work are the first to struggle. I always remind my team that prospecting is the foundation of our business; it’s what’s going to keep the pipeline full when inventory is tight.
The power of the listing agent
In a market where multiple offers are the norm, one thing is sure – the listing agent is always guaranteed to get paid. I’ve been vocal with my team about this because it’s an essential truth of our business. When I was a top agent, 85 percent of my business came from listings. In today’s market, controlling the listings means controlling the transaction. It’s a mindset shift I encourage every agent to adopt.
The real estate landscape is constantly evolving, and every market has its unique dynamics. However, in hypercompetitive, low inventory markets like ours, success boils down to a few key principles: innovation, adaptability, a return to fundamentals and a commitment to agent education.
As brokers, we need to equip our agents with the right tools and mindset to thrive, not just survive. The markets will continue to change, but the principles that guide us won’t. Stay agile, stay focused and keep building the relationships that will carry your business forward.
Jack Gross, President of Better Homes and Gardens Real Estate Cassidon Realty, Cassidon Property Management, Petra Holdings and JG Properties. Connect with Jack on X.
