Open Houses, Another Perspective
Lee Morof recently wrote a blog piece titled, "It's Time for Realtors to Stand Firm on Not Doing Open Houses." I encourage you to read that post for yourself, but my take on it is that based on the Survey of Home Buyers and Sellers conducted by the National Association of Realtors, open houses do not yield results. Since they don't yield results and have inherent risks, we should not do them.
If my experience matched that of the survey, I would completely agree with Lee. I've sat plenty of empty opens with little more than a door to door salesperson to knock on the door. I've watched football games uninterrupted and had more peace and quiet at times than I could hope to get working at my office or my home. But...I've also completed a number of transactions as a result of my opens, met new clients I'm currently working with and gained face time with neighbors and other potential clients.
As I write this I have 3 closed transactions this year (2009) as a result of open houses and one more in escrow. We have buyers we are actively working with and several waiting till a later date.
So why are my results different from other agents? If I knew for sure I'd sell books and hit the lecture circuit. Every agent is looking for an edge in this crazy market. I can tell you a few things I've seen other agents do, that I don't.
•1. I don't sit idly by at an open, paying more attention to my phone or computer than the living breathing human being who chose to walk in the door. When someone comes, I greet them ask their names and do what is expected; I tell them about the home. As we walk and talk I try to get to know them in a general way, asking questions they are usually comfortable answering. Buyers are often afraid of the hard sell and I don't recommend that. Allow a buyer to come in, see the house and take in the whole experience. I don't rush them or pepper them with detailed Real Estate specific questions. They are there because they have an interest, it may not be for themselves, it may not be immediate, but I will take this opportunity to make a lasting impression.
•2. I don't hold an open house in secret. Signs are fine if you are just off a main thoroughfare, but many homes are off the beaten path and people don't find them by accident. Our MLS posts open house dates, which are then replicated on many company sites. Redfin is especially useful in making this data known in our market. I also post them on Facebook, Craigslist, Trulia and plan to Blog about upcoming opens.
I did one open in the fall from 1-4 on a Sunday and thought I had wasted my time. It was 3:55 and no one had come through. I started packing up my stuff and turning off the lights when the door opened. A couple with a small child appeared and wanted to see the house. They had found it on Redfin and drove out specifically to see it. I gladly accommodated. They had a strong interest, but needed to sell first and weren't sure about a few things. We talked at length discussing various strategies to accomplish their goals and mine. Their agent listed their home and had an acceptable offer it in 3 days. They are now pending on my listing. I believe they fell in love with the house because I was there to present it in its best possible light.
•3. I don't overdo them. I've had clients who felt we needed to have their home open every Saturday and Sunday. I told them no. Even in this market, desperation is not a good signal to send. If I wanted to show a home to a buyer, but it was constantly open I would hesitate. I don't want my buyers interacting with just any listing agent. Some are very good professionals who either keep their distance or even leave for the showing. Others have followed us around not allowing one minute of reflection. Occasional opens, every 3-5 weeks or with price drops or other substantive changes is what I have found works well in my market.
•4. I don't demand the buyer sign in. Now, this is controversial, and sellers need to know about the risks of unqualified strangers entering their homes. I have the talk with all of my sellers multiple times about hiding valuables, medications and personal data. When a buyer has to sign in the minute they walk in the door, many will turn around and leave or give inaccurate information. We've all been harassed by some pushy salespeople who got our info in a moment of weakness and people by and large are wary of this practice. I do collect information before people leave however. Once a rapport has been established and they have a reason to provide it, most will gladly give me their phone and email. I promise to send useful information, even if they are already working with another agent, then I do it. CMA's, School information, Do-it-yourself tips, whatever might be valuable to them.
An Open House is a way to come face to face with an interested party. Neighbors who want to know value and are looking for their next agent. Shoppers who may have an agent, but their agent doesn't know the house. I have found that in doing a detailed presentation of a home that I know well, I highlight features not clearly evident in the marketing materials that are important to this specific buyer. We also discover how the general public feels about the home, it's presentation and it's price. Feedback from a real shopper is valuable information. It can confirm or deny suspicions you or your seller may already have and help you change something that makes a difference. I have greater confidence asking a seller for a change when I have had direct contact with potential buyers.
In thinking about the survey, it may be that buyers found homes online first, and reported that fact, while leaving off the additional fact that they also visited an open house.
Now, it needs to be said that all markets are different. I've only worked in this one market, but I've had a measure of success and plan to keep doing what works.
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