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Open House Tip from Evil Rich

The theory is pretty simple. Create a way to find out what the general public really thinks about the value of the property. How? Bribe them.

Folks, I am not talking about a little bribe. If you want real results, go BIG or go home on this one. Forget about a $50 gift card. Forget about a free magazine subscription.

This is something that I call the Tent Card Game. It isn't all that new of a concept, but we take it up a notch and make it worth the time to play.

Our open houses are mostly done on our auction properties, but this can be done for any property. Put out a sign offering $1,000 to the person that guesses the ultimate sale price of the property, payable at closing. How you work this out with your seller is up to you.

Believe me, the opinions you get will be well thought out and for $1000 the players will give you their correct contact information. Now you have the name, email and phone number of people that are looking for property in this price range and location. You also have real live consumer and agent feedback on value.

I have been using this game for over 10 years and historically we end up with an accurate range. This is wonderful information for the seller. At an auction, it gives us direction on who focus on during bidding.

This is just one of the little tricks we use when listing a property for auction or for brokerage. There are more.

Another gimmick I am using in some ads is "buy a bank owned home and get a free toaster". I have gotten showings off of that offer.

So, to receive your free toaster from my stock be the first one to guess how many times I have ever had anyone pick the exact sale price and had to give away the $1,000.

Posted by Rich Kruse on 08/12/2007 08:14 AM

Comments (19)

auction, open house, game, value, buyer

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19 Comments on Open House Tip from Evil Rich

Rich:

You are a clever devil. Excellent ideas.

My guess on how many times you had to give away the $1,000.00 because someone guessed correctly is:

0 times.

BTW keep the toaster. I think this is a great one. What a spin on the banks giving away a free toaster when you open a checking account. Do they still do that?

08/12/2007 08:28 AM

by » Bill Burress Nationwide Mortgage Originator

Rich, interesting concept. How do you advertise this ? Just a rider on a sign out front ? Give us more details.

08/12/2007 08:35 AM

by Missy Caulk Ann Arbor Real Estate (Keller Williams Ann Arbor, Michigan)

You're so sneaky! I love it.

Thanks for the tips.

08/12/2007 08:35 AM

by Roswell Georgia Real Estate Agent - Nancy Rivera (RE/MAX Leading Edge in Roswell Ga)

That is an interesting idea. My guess is you haven't had to pay off on the bet.

08/12/2007 08:56 AM

by Brenda & David Wakeman (RE/MAX Classic Realty Group)

Rich, I love this. Sounds expensive but, in reality, is probably money well spent.

08/12/2007 09:14 AM

by Carol Williams Wenatchee Real Estate (TopPropertiesRealEstate.com)

Bill - I'm not sure, but we all remember those days so the ad has recognition.

Missy - I don't advertise it although I could. It is just a sign on the table in the house.

Nancy - You're welcome.

Brenda & David - Nope

Carol - the best part is that it is free. Never had to pay off. Yet !!

08/12/2007 09:23 AM

by Rich Kruse (Gryphon USA, Ltd.)

Rich,

I love the ideas - both of them! I do not think they are either evil or sneaky. With the $1,000 because it is at auction, this is probably more likely to not have to pay off because of auction. If I have a house listed at $299,900 - there is still a pretty good chance of the home selling for that price, so I could see parting ways with a $1,000.

As far as the actual payout, just explain to the seller in advance that this is a potential $1,000 hit of "closing costs" that probably won't be paid out. I don't think it owuld be a hard sale.

Now Have a Blessed Day,

John Occhi, Hemet CA REALTOR®
Mission Grove Realty

08/12/2007 09:38 AM

by John Occhi Hemet CA Real Estate (Century 21 Crest - Crest REO)

Rich, Very creative way to get the customer ( and contact info ) engaged and talking to you face to face.

08/12/2007 09:48 AM

by Bill Gillhespy Fort Myers Beach Realtor (Century 21 Tripower Realty)

Rich, that's pretty slick. I presume that your contest rules say that the entrant has to guess the exact price in order for you to pay off.

08/12/2007 09:56 AM

by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Mastros Real Estate, Inc.)

Purely brilliant idea Rich, I love it and will try to use it on the next overpriced listing I get. As far as the toasters go, probably never have given one have you?

08/12/2007 10:00 AM

by Jim Little, Your Sun City Arizona Realtor (Ken Meade Realty)

John - If you have fear of that, raise the offer to $5,000 and make them guess the NET (after closing costs and tax prorations). Personally I don't even bring it up to the seller. It's my bet and the odds are in my favor.

Bill - It is an ice breaker and creates a lot of buyer leads that I pass to my crew.

Brian - That is correct. They need to guess the exact number.

Jim - I have actually given away a few toasters, never the money.

08/12/2007 10:45 AM

by Rich Kruse (Gryphon USA, Ltd.)

It's brilliant. And, on a good portion of homes, I wouldn't mind paying out the $1000 for the information I might get back... think about getting three or four serious buyers that close $10,000 net transactions. That would be worth $1000 to me...

08/12/2007 11:22 AM

by Lane Bailey - The REALTOR for Car People (Century 21 Network Realty)

I just noticed your Meez. LOL!! And people will buy a house for a toaster? Are you serious? What kind of advise do you give these people, or do you advice against giving advise? HAHAHAHA! (You're the only one that will get that)

08/12/2007 11:36 AM

by Lisa Hill (Daytona Beach REALTOR®) (Adams Cameron and Company)

Lane - It is a great way to get contact info on buyers and show the prospective clients that you think outside the box.

Lisa - I get it. No. They don't buy for the toaster, but I have gotten a lot of agent comments that it was noticed in the remarks and buyers have said "let's see the toaster house".

08/12/2007 12:03 PM

by Rich Kruse (Gryphon USA, Ltd.)

I love this idea :o) thanks for sharing

08/12/2007 03:12 PM

by Central Oregon Real Estate | Thesa Chambers, Broker (RE/MAX Sunset Realty La Pine)

You're welcome Thesa.

08/12/2007 03:26 PM

by Rich Kruse (Gryphon USA, Ltd.)

Rich - I came across one of your "toaster" listings last week while completing a BPO. Because I am an avid reader of your blog and have a feel for your humor, it made me laugh. I can see the benefit of standing out among all of the bank owned properties in Central Ohio.

08/12/2007 09:28 PM

by Wayne Straughter

i would guess zero have gotten it right

08/14/2007 01:34 PM

by Jeff Tumbarello (Network Funding Solutions, LLC)

Rich, with my luck, I would have 10 people guess the correct price.

08/18/2007 11:08 AM

by John Evarts (Classic Property Management of Santa Clarita)

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