I was reading Mario Trejo Romero's blog this morning, "Are Open Houses Still Worth It?" and found myself evaluating my own "motives," if you will, for holding Open Houses. It sparked my curiosity on how others on ActiveRain use Open Houses or if you do at all. I know that every market is different and mine is very conducive to this approach.
Personally, I see several benefits of using Open Houses as a regular practice:
First, it helps to show the sellers value, validating that we are using every tool available to market their home to the masses. Our goal is to expose our listings to as many people as possible so why wouldn't we use the Open House also?
Secondly, it gives the general public (neighbors included) an opportunity to view the finer details of the home. This may increase a buyers' interest over simply viewing it online as well as generate referrals from neighbors. Yes, I've seen the statistics on how buyers are using the internet today and I'm a firm believer in it, however, it does not replace the 3D effect of walking through the home itself. Buying is an emotional thing and it's difficult to get a buyer emotional about a home with 2D views of a home. Sometimes it's just about that gut feeling and how a home flows. I have had several instances of a neighbor knowing a friend or family member who wants to live near them and giving them the opportunity to see the house themselves will sometimes generate enthusiasm that then transfers to their friends/family. Also, in our market, buyers will often go out driving around looking at homes on a Sunday without their Realtor, simply to make sure they're being shown everything they may want to see (do they not trust their Realtor? That's a whole other topic). I've had instances of this generating interest in those buyers who otherwise may not have seen my listing. I love it when a buyer brings their Realtor back to my listing after the Realtor, for whatever reason, ruled it out as a solution.
Third, (and maybe most importantly) it puts me in front of the public. I'm less likely to sell something if I don't get the opportunity for a face-to-face meeting. I can honestly say that my first year of business, over 50% of my business was generated by sitting on Open Houses. I picked up buyers, as well as listings by being in a house and having the opportunity to meet legitimate buyers and sellers. This is an art that takes some honing but it's not difficult to convert lookers into clients if you have something to offer and they're comfortable with you. In an open house, they know going in that there will be a Realtor there, so most times they're not on the defensive. It's all in your approach.
Fourth, Open Houses give me the opportunity to help a newer agent learn the ins and outs of working with possible buyers & sellers. I think the best thing a new agent can do to grow their business is to sit on Open Houses and meet people. As professionals, we have to constantly learn more about how to earn others' trust. Figuring out what works and what doesn't is often a trial-and-error process so the more open houses you sit on, the more practice you get. It's a numbers game, right?
I know that part of the reason I'm so partial to Open Houses is that I was brought into the business this way. Before I was a Realtor, I was a community manager for a large local builder. I sat on an open house (my model home) daily so it's natural for me. Doing that was my schooling. It's where I learned what to do and what not to do. It's where I learned how to spot the people who want to talk and the ones you have to approach more carefully.
So what are your thoughts, Rainers? I'm interested to know what you see as the benefits or drawbacks of holding Open Houses.
UPDATE: I did a followup post going into more detail of how to hold a successful open. Enjoy!
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