7 Low-Inventory Market Strategies Every Agent Should Adopt In Q4

In many ways, the U.S. housing market in 2025 is a market of contradictions. Although housing inventory has been steadily rising, buyers’ purchasing power has eroded even faster because of high mortgage rates and rising home prices. Meanwhile, home builders are slowing work, even though the U.S. still has a housing supply gap of around 4 million units, according to Realtor.com data. 

As a result, many Americans are frozen in place — because they want to hold on to a low mortgage rate or because they simply can’t afford a home at all. Dissatisfaction is rising. According to Clever data, 68 percent of Americans get frustrated with where they live, up from 59 percent in 2024. 

For agents, this means they’re essentially working in a low-inventory market. This can be hard to fathom in light of increasing inventory over the past year and a half, but when so many buyers can’t find an affordable home, it’s difficult to describe it as anything else.

7 low-inventory market strategies

Here are some tried-and-true low-inventory market strategies to help you adapt and flourish.

1. Go off the beaten path

As an agent, it can be tougher to find listings in a low-inventory market, but they’re out there. You may just have to look a little harder.

One great source can be for-sale-by-owner listings. It’s common for these properties to be poorly marketed or badly priced, so they may sit on the market for a long time with little or no interest. These sellers often welcome the perspective of an experienced real estate agent, especially one who comes prepared with a specific plan to get their home sold. 

You could try a similar strategy with recently expired listings. In many cases, there’s an obvious and fixable reason these listings didn’t sell. Many of these sellers would welcome a second chance.

Another source of less-visible leads is your professional network. Talk to other real estate professionals you know to see if they have leads to pass on. Divorce lawyers, for example, can often tip you off about properties that are set to hit the market as part of a settlement. 

2. Refine your buyer pool

In a low-inventory market, you always have to be ready. When a new listing hits the market, you should have a pretty solid sense of which clients are compatible with the property. 

That’s not as simple as it sounds. You not only have to know what each client is looking for, but you also have to know what they’re looking for right now. Expectations and needs change constantly. Perhaps a job loss has lowered their budget, or an unexpected addition to the family has expanded their square footage needs. This requires constant communication with your clients so you’re up to date on what they’re looking for.

By the same token, it can be a big time-saver to put your various buyers into tiers of seriousness, from urgent, pre-approved buyers to those who are still “just looking.” This ensures you’re spending most of your time on clients who are most likely to complete a purchase.

3. Help your buyers develop reasonable expectations

There’s often a huge gap between buyer expectations and what they can realistically afford. Many buyers are operating on a set of assumptions that have become outdated in this fast-evolving market, and it can fall to you, the agent, to bring them up to speed.

Have a frank sit-down with your buyers, and tell them about local market conditions. A valuable ally in this process can be the buyer’s lender. Encourage them to get a mortgage pre-approval before they head out into the market. Their lender will likely give them a similar talk about how much house they can afford. The goal is to start the home search with a firm idea of what is and isn’t realistic given their budget and their needs.

4. Target investors

The average homebuyer stays put for about 11.8 years, according to Redfin data. But many investors buy multiple properties every year. If you can become a go-to agent for a few of these investors, that could be as good as finding 50 regular buyers. 

5. Establish what makes a strong offer

In a market with limited inventory, buyers have to compete with a lot of other buyers. Before you and your client get into a high-stakes, time-limited situation, it can be helpful to talk about how they can make an offer stand out if they need to win a bidding war.

Some examples would be making an all-cash offer or putting down more earnest money. Money talks, as the saying goes. 

They could also include an escalation clause, giving them a right to top the best offer. Finally, they could waive contingencies, though you should explain how this could backfire if they later find problems in the house.

6. Circle back

Your previous clients can be your best source of future business. According to National Association of Realtors data, over one-third of sellers choose their next real estate agent from a personal referral from family or friends. Either way, it pays to stay in touch with your past clients. That could mean periodic check-ins, regular email newsletters or referral incentives. 

7. Refine your sales techniques

In a tight market, margins shrink, and soft skills can give you a crucial edge. Build rapport with your clients and engage in active listening. Convey that you hear what they’re saying, and tailor your recommendations to their personal tastes. The better you understand what your client wants, the easier it’ll be to get a successful outcome.

Check in regularly via text or phone. If you’ve built genuine trust and connection, it’ll be a lot easier to set reasonable expectations and deliver disappointing news, if needed.

In the real estate boom of the early 2020s, it could feel like homes sold themselves. It’s only natural that a little complacency might have set in. But the market has evolved, and agents who don’t evolve along with it risk being left behind. 

It’s crucial to get back to basics and focus on the fundamentals of being an agent, which includes low-inventory market strategies, such as finding quality leads, building connections with your clients and closing deals. 

Luke Babich is the CEO of Clever Real Estate in St. Louis. Connect with him on Facebook or Twitter.