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The Open House Hijacking

I was reading Simmons House Lola Audu's post today on a simple, nice closing we had yesterday, when midway through the post she mentioned a Mortgage Lender who had come to an Open House I had at this home (Grand Rapids, MI) and "scared off" my one and only potential Buyer for that day. He arrived outside, child in tow, and intercepted the lady in the driveway, handed her a flyer that he had printed up with my info/picture and his, too, talked to her for quite awhile (I thought he was a RE Agent and this was his client, so I gave them some room), then off she went.

Then just last weekend, I was at a different Open House when 2 gentlemen approached the doorway in suits (I had them pegged as Mortgage guys), but when they came in and I introduced myself and my company, they only introduced themselves by name. So "Yeah!" I thought, 2 potential buyers. Then they started asking questions and a little bit later, did inform me that they were mortgage people. Only when I asked them who they were with, did they tell me. A little odd, isn't it? They didn't scare anyone off, but me.

Apparently from some of the response's Lola received, this is not the norm across the county. The reputable companies are so busy picking up the pieces here in Michigan, they probably don't have time to show up unannounced. I'm not picking on anyone in the Mortgage Industry, since I have some great business relationships (some good friends, included). But, please, for future reference, we love to partner with you at Open House's - but by invitation only. Is this wrong?

Posted by Ed Vogt, Grandville, MI Midwest Properties on 08/30/2007 12:18 PM

Comments (42)

open houses, ed vogt, audu real estate, lola audu, michigan, grand rapids

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42 Comments on The Open House Hijacking

AUG

2007

In my opinion, they should have offered their cards and an introduction immediately.

Sounds very rude to me, not to mention unprofessional. Not exactly the way to earn MY referrals!

Being a Mortgage Professional, I would never just "show up" at an open house unless I was looking to buy the house. That is very rude.

Sean Allen
The Mortgage Professionals
Professional Credit Consulting & Repair
www.TheMortgageProfessionals.biz

Yes, I agree with you; it's called common courtesy and professionalism. If they had such blatant disregard for me as a professional Realtor, they would not be welcome as business associates of mine.

Hi Ed, I think in a sense it's like someone entering a major store and soliciting business from the people who were shopping. We all know that this is not appropriate. I don't think it's appropriate to solicit buyers at an Open House either without requesting permission from the business owner who in this case is the broker. Perhaps, Open House signs should now include: "no solicitation"

Although I don't go to open houses.... I would NEVER enter the house unless the realtor was alone. I do not want to interrupt. And I would introduce myself in the first few seconds as to what/who I am.

Thing is... these guys may have been new. Or maybe their manager made them get out there and hustle up some business.

Is MI a 'right to carry' state? LOL

Roberta - yes, they should have. Especially since I'm a female (luckily I wasn't alone) at this open house. For better PR, if nothing else.

Sean & Pilar and Sandi - I have the greatest respect for Mortgage "Professionals" and you're right, this was not very professional.

Ed - Very odd that they didn't announce who they were upon arrival. As a home stager, if the Realtor isn't busy with a potential buyer, I introduce myself and hand them my card. Most are pleased that I stopped by especially if it has been a slow day.

I'm a mortgage broker and I go to open houses almost every weekend, generally unannounced. The first thing I do is offer my card to the Real Estate professional that is hosting so they know who I am and what company I represent.

I could not imagine trying to grab potential buyers or not letting on who I am and what my role in the business is. How in the world is someone supposed to build trust if they are not upfront with the host?

My typical visit is a few minutes if the real estate agent is not with a potential client and then I am out the door so they can conduct business.

I just think that the mortgage brokers that operate the way described above indicates poor parenting and a lack of decent education.

I, too, have had mortgage folks try to hijack an open house AND the guests! Totally unacceptable. A couple Sunday's ago, I had an inspector try to do the same thing.

A number of months ago, someone else posted on this subject, and most of the agents that commented did not approve of these surprise visits. As I recall, the consensus was that it's "our" open house for potential buyers to view ... it's not an opportunity to try to sell a "captive" audience.

No doubt about it - those people were all WAY out of line.

I'd have a fit if someone did that to me!

The bottom-feeders will always be around we just have to identify them and keep educating people.

If a mortgage broker is trying to sell at an open house, he/she is missing the boat. Go to the open house, see what the market is doing, ask the RE agent about their business, thank them for taking a minute of their time and vamoos.

I also carry a cooler with cold drinks and offer them up the the RE agent in case they didn't bring anything for themselves or the seller had nothing for them.

Funny, Tom - and I'm not sure if we are or not (but I do think so:)). They might have just been hustling business, too, so you have to give them credit for trying - identifying themselves immediately would have been nice.

Completely not professional and I would not want to associate with a broker that works that way. I have no problem having a lender at an open house to qualify buyers, but it needs to be by my request or some agreed upon strategy with the mortgage broker.

Hi Lola - Good analogy. I like the idea of the "no solicitation". Can we incorporate it somehow on our website, too?

Sarah - Thanks for stopping by. Common courtesy is like common sense - it's not all that common.

Greg - they probably did have bad parenting/education, but had they brought me food.......:)

Melina - Actually I enjoy having the mortgage pros there with me since they can answer a lot of questions and help with the qualifying.

Janice - the company is usually welcome, too, for me. As long as it's mutual.

Marc - education is key, and a quick introduction (to me, not my potential buyers).

Elaine - what on earth was an inspector trying to capture? Did he want to give a free pre-inspection of the property?

Ed: the inspector was passing out his flyers in a paper bag "open house kit". He included candy & water, but I still disagree with these pop-ins.

To me it's no different than if I walked into their office and interrupted them in a meeting with their clients. Even if there are no guests, spending my time listening to how great they are is not how I want to spend my free time - that's why I take my laptop so I can get some work done.

Hi Elaine: I guess it doesn't hurt to know too many inspectors; the advertising for themselves at our Open Houses is a different story. If it's pre-arranged that's one thing, but I don't often hear of Inspectors going to an Open House just for the fun of it. I know the ones here in West Michigan are BUSY.

I didn't realize they would do this - are they trying to sell to you or the potential buyers - is there an ATM machine set up at the door, too?

AUG

2007

Kathleen - Cute comment. I'm pretty sure they're just trying to get their foot in the door with us (literally:)), however the first guy ended up passing out his information to the customer.

Ed, a think I mentioned in Lola's post that the lenders that show up bring goody bags for us to drink or snack on. Guess it's a GR thing !

SEP

2007

Ed Great post, again I do not mind if Mortgage Lenders, or other professionals showing up to an Open House. But I do agree make contact with me first!

Very unprofessional in my opinion. It's hard to tell who are bona fide clients and who aren't these days and by them using this tactic would turn me off using them or referring business to them.

Hi Missy - had they shown up with goody bags (maybe some nice Godiva's:)), then I probably wouldn't have written this post.

Hi Renee - Thanks for stopping by and commenting:) I guess they just gave me (as Therese would say) the "icks".

Am glad I happened upon this post. For years, I have been visiting open houses on Sundays in the general Cleveland Area. I agree most with Greg Wilson's post. I have used a beverage Survey (Pop) approach and as part of my introduction, I tell them that I am conducting a survey, DIET or REGULAR. Except on very, very rare occasion have I ever had a Realtor decline the offer of a cold beverage. Under the tab was always my business card. The Realtor knows who I am and of course they know I am out looking for referrals. I there are potential buyers in the home, I will always leave very quickly after offering the Realtor the Cold Beverage. Reading the prior posts I am surprised that a number of the Realtors encourage me to stick around. If this happens, I browse the home as if I am a potential buyer while the Realtor attends to the prospect. Then we talk as Greg said about the market and the Realtors Business. Again enough times the Realtor introduced me to a potential buyer that is viewing the home. Because I visit Realtors I know and others that I do not know, they both have introduced me as a valued associate to the potential client visiting the home. I laugh inside because the Realtor is trying to impress the potential buyer and if that buyer was not there the chances of them ever calling me would be slim to none. I look at it as we are using each other in a Win / Win situation.

I believe that Open Houses generally don't work for Realtors in selling homes. The Open Houses that are held are intended to satisfy a seller or to look for potential buyers. Would you say a Realtor using a sellers home to look for potential clients is unprofessional? Or would you say a Realtor calling on a "By Owner" without notice is unprofessional? I call it creating opportunity.

Besides the beverage, I will normally have an article of interest or a flyer promoting a program that the Realtor might use to open dialog with a potential client. I believe I am providing a service and assistance to the Realtors in the hopes that they will consider giving me a call. Many times they ask specific questions, that I answer for them and then they pass that information back to their preferred or in house lender. I do not take offence because I know that is the way it is. For the times that my timing was right and I was lucky enough to assist the Realtor in creating a bond to a potential client, it does hurt a little when their preferred lender was sitting at home watching TV while I was out on the street trying to assist Realtors and they were the ones to reap the rewards. Such is life.

I will mark this blog and watch the replies. Maybe I will change my thinking. Thanks AR and fellow Bloggers for this forum and expressing your opinions.

SEP

2007

Ed, learned something from this one. From your post, and from Greg and Tim's comments in particular. We haven't seen this behavior up here...yet, but will be better prepared when we do.

Also want to thank you for taking your time to comment on the crest charade we did recently. I though we might find someone who appreciated Mr. Ed. Your post here and your comment are most appreciated.

SEP

2007

Tim - The way you're introducing/promoting yourself seems a lot more professional than my encounters. This isn't the first time I've had Mortgage people drop by unannounced for my Open Houses - I've had nice conversations with some and even future business. It can be a win/win situation if you start off on the right foot.

Gary - thanks for stopping by and commenting. You can see why I would appreciate Mr. Ed:)

I do not mind if they show up as long as they introduce themselves . I attend other agent's open houses to see the house and introduce myself as well as when I go to FSBO's open house.

Thanks for your comments Ed. You had me looking at what I was doing and really wondering if it was the proper thing to do. I will be continuing what I have done in the past but also mindful of the agents and their time. Thanks for a good post.

I havent had a mortgage person to just drop by. I do invite some that I know to join me for my Open House.

Chris - that's how I feel, too. Unprofessional, in my opinion

Hi Gita - Getting people in the door at Open House's is the key. I feel if they're taking the time to come by, then at least view the home, too. If other agents come by, then that's one more person that has seen the home.

Tim - I appreciate your thoughtful comments.

Vicki - I enjoy having the invited ones hang out with me and help out a potential client with info or prequalifying, too.

SEP

2007

Hi ED - In the past I have gone to open houses to introduce myself to agents, NOT to solicit buyers. I introduce myself when there are no visitors around and come bearing gifts - a soda or a coffee in the cold winter months. Most agents I have talked to have had a couple of financial questions that have popped up or scenerios they wish to run by me. My experiences have been pretty good. One of the agents I met at an open house I popped in on even ended up selling my sister her first home!

In my opinion it is the way you have been approached that I would find offensive -- especially when they hijack your buyers in the driveway! In most instances I think there is an acceptable, as well as an unacceptable way to do things. Great thought provoking post!

SEP

2007

Thanks, Mary, for stopping by and commenting. It does boil down to the approach, doesn't it? It's nice and I'm sure appreciated when you bring treats, too:)

I may have to bring you a treat one of these day! In person!!!

It sounds very unprofessional what the mortgage brokers did in the original post. I'm not the most patient person, and am generally polite and courteous but I believe I'd have a gasket if these guys did that to me. I'm having visions of kicking the brokers out of the house now...:-)

SEP

2007

Thanks for commenting, Brandon. The first guy really caught me off guard more than anything. The others didn't stay around too long - didn't even bother to check out the home.

Hi Mary - that would be great! Call first, of course:)

SEP

2007

This is definitely not normal or appropriate. My lender partners would never do this and they would not expect me to show up and camp outside their door and solicit clients as they entered and exited the building. Nice post.

SEP

2007

Gary - exactly, if the shoe were on the other foot, that would be completely unacceptable for us as RE agents to do. Thanks for the comment.

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Ed Vogt, Grandville, MI Midwest Properties

Grandville, MI

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