7 Tips for Navigating a Market with Increased Inventory

Since 2020, the housing market has strongly favored sellers with rapidly rising home prices, intense bidding wars, and fast sale times. But that’s begun to change thanks to a surge in active listings this year.

This influx of new inventory has put more negotiating power in buyers’ hands, and some parts of the country—such as Florida, Texas, and parts of California—are even experiencing a genuine buyer’s market. In fact, recent data shows that sellers are now outpacing buyers nationwide, causing home prices to flatline and even dip in some cities.

If these changes are forcing you to reconsider some of your marketing and sales strategies, you’re not alone, and you’ve come to the right place. In this article, we’ll walk through seven ways agents can adapt to buyer-friendly markets to stay competitive and find new opportunities.

1. Start Strong With Competitive Pricing

As inventory rises and buyers gain more negotiating power, many sellers can’t get away with overpricing anymore. A smaller buyer pool means inflated listing prices run the risk of lengthy time on market, multiple price reductions, and even expiration.

In buyer’s markets, it’s a good idea to keep listing prices competitive from the outset, which requires agents to run thorough and accurate comps. When doing so, try to use homes that have sold as recently as possible to get a feel for the latest pricing trends in your area.

2. Adjust Seller Expectations if Necessary

Some sellers expect today’s market to behave as it did several years ago, when inventory was dismally low, home prices were steadily climbing, and buyer competition was fiercer than ever. But much has changed since then. Surveys indicate that bidding wars are on the decline, with only 25% of transactions garnering multiple bids nationwide.

As a result, many sellers may need to readjust their mindset and prepare for fewer bids, stronger buyer negotiation, and extended time on market.

The sooner you can have this conversation with sellers, the better—and the more likely they will trust your marketing and negotiation advice.

3. Make Your Marketing Memorable

A strong seller’s market can overlook many listing marketing mistakes. But in a less forgiving market, you’ll need to get creative if you want your listings to stand out. For example:

• Professional imagery isn’t enough on its own anymore. Consider using video walkthroughs, and if a property has a large or beautiful lot, try drone footage.
• Highlight features that are the most appealing first. Ensure that buyers can see these features within the first few seconds of viewing your listing.
• Run ads on listing platforms to expand your property’s reach and visibility.
• Get personable. When hosting open houses, consider knocking on nearby doors before and afterward to get to know the neighborhood—and potentially find future clients.

4. Amp Up Your Negotiation Tactics

If you’re working with a seller who doesn’t want to budge on pricing, finding other ways to negotiate with buyers will be essential. Consider areas where they may be willing to negotiate, such as:

• Contingencies: perhaps extending the loan approval deadline or allowing the buyer to back out if their current home doesn’t sell
• Repairs: offering to cover some or a majority of the repairs required after a home inspection
• Closing costs and terms: setting a closing date that works best for the buyer or offering to cover more of the closing costs
• Inclusions: perhaps including in the contract certain furniture, fixtures, or artwork in the home

5. Look Up Buyer Support Programs and Resources

Although inventory is on the rise in many markets across the U.S., affordability is still a persistent issue for buyers due to high mortgage rates and home prices. When working with buyer clients, it’s a good idea to research resources that can make homeownership more feasible, such as the ones listed below.

Federal Loan and Assistance Programs

Several loan programs backed by the federal government offer certain buyers special rates or conditions, including:

• FHA loans (Federal Housing Administration) have lower credit score and down payment percentage requirements for first-time buyers.

Related: FHA Loans vs. Conventional Loans: How Do They Differ?

• USDA loans (United States Department of Agriculture) allow buyers who meet income requirements to purchase homes in rural areas with as little as 0% down.

• VA loans (Department of Veterans Affairs) allow servicemembers and their spouses to purchase homes with no down payment, competitive interest rates, limited closing costs, and no need for private mortgage insurance.

The Department of Housing and Urban Development also offers several programs to assist buyers in certain areas.

• Good Neighbor Next Door allows certain professionals—including firefighters, law enforcement, teachers, and emergency responders—to purchase homes for 50% of the list price in certain revitalization areas.

• The Housing Choice Voucher program allows low-income buyers to apply for homeownership vouchers, which can be used toward purchasing a home and potentially paying for monthly housing expenses.

Down Payment Assistance Programs

Many states and counties have programs to provide first-time or low-income buyers with down payment or closing cost assistance. Check your local area for programs that could apply to your specific buyers.

Home Education Courses

Some programs require buyers to go through home education courses to ensure they’re ready for homeownership. Consider researching qualified home education programs or resources in your area for buyers to use when applying for a loan or assistance.

6. Keep in Touch With Past Buyer Clients

As sellers outnumber buyers, now is a good time to reach out to buyers you’ve worked with in the past. You never know when a new job, addition to the family, or desire for change may lead someone to look for a new home—and you want to make sure you’re the one they think of when they’re ready to find representation.

Following up doesn’t necessarily mean pitching your services each time. It can be as simple as sending a kind note saying you hope they’ve been well, gifting a small coupon booklet tailored to their area, or inviting them to community events you’ll be attending or hosting.

7. Research Your Local Market Thoroughly

Just because much of the country is following similar real estate patterns doesn’t guarantee that your specific market will, too. For example, while southern U.S. markets are starting to lean more toward buyers, many cities in the North and Midwest are still experiencing strong seller’s markets and rising home prices.

As you research your area, you may find various pockets of your city are experiencing different trends and require unique marketing strategies. Get to know your area intimately, both by examining real estate data and staying in touch with other active agents. While data can tell you how much homes are going for, discussions with agents can give you an idea of how much buyer competition there is and what tactics are working best in that neighborhood.

As the housing market continues to change, agents must be ready to adapt their pricing strategies, marketing tactics, and outreach methods. Those who do will not only rise to the top but also build a resilient business that’s ready for whatever else the future may hold.

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