We all know that homes don't often sell as a result of an open house. So why do a few of us still do them? Is it really just an injustice to our sells?
Why would I recommend open houses?
First because it sets us apart from many agents.
I'll admit that until I recently had my wife join me in my practice, I wasn't a big fan of open house. Many agent try to pitch to their sellers that they won't inconvenience their them by "taking their home hostage." I was one of them.
However, I recently thought back when I was new in the business and had my first listing, I held an open house and had a lot of success, not only obtaining new buyer prospects, but also interest in the house. The home sold quickly and it was a great start to my career.
Since most don't like to hold opens they use the 'captive' pitch when doing their listing presentation. I'm not sure, but I don't think they really know if their sellers appreciates their "thinking of them" or just accept their premise. All I do know for sure is that I'm representing a seller for the second time and this time I'm holding the house open, where I didn't do so but once during the first representation. She certainly seemed excited when I told her we would be doing so. Sometimes we may forget that we might actually be losing a point in our seller's mind when we think we glossed over a chore we really didn't want to do.
The agents that don't hold open houses do so for more reasons than the one they use to rationalize with their sellers. Perhaps they're convinced that since newspapers are not really relevant today, it's hard to get buyers to respond. That's true and certainly since news papers still haven't caught on, the price they charge for poor results makes that venue a poor choice.
However, there are many other ways in today's technology to get the job done. In our area ListingBook is a fantastic tool. The MLS and reverse prospecting is another. Realtor.com, Craigslist and other such sites can be easily added. Getting the neighbors in on selling your listing by hand delivering a flyer ahead of the neighbors advertising a "Sneak Preview" during the half hour prior to the open, is a great way to capture others that may be visiting or may be relatives that want to live in the area. Although I use an 800# with a 24/7 recorded message, and I don't use flyer boxes; if you do, it can save you from having to replace the flyers after the first day or two. We all know where the flyers go. Why not make it a "belly 2 belly" contact and market yourself? Maybe you'll pick up another listing. You never know. It's all about marketing.
Second, I believe that sellers love to see us doing anything, even if it's wrong! In this down cycle market, anything we can do to impress our sellers can result in future referrals, repeat business, and satidfied customers.
Finally, come on! We want buyer prospects, right! Why do we really focus on listings besides the obvious? After all, we carry all of the expense for getting the home sold, while the buyer's agent just burns gas until they figure out how to educate buyers and get them into the right homes. As sellers agents, we budget 20-30% or more of our business around the buyers we generate. And, if we leverage ourselves, we have a commodity we can sell by hiring buyer's agents.
Done correctly, open house can add to your profits, get you more listings and leave you with happier clients. Do I really need to sell you? I certainly respect your position if you disagree, but for me, I only have the opportunities I take advantage of.
I wish you great success! -Bud
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