After my post yesterday, How do you view Open Houses?, I saw a lot of varying opinions on the usefulness of what I consider a staple in our industry, Open Houses. With each market being different from the next, it's clear that the measurable benefits of an OH vary. However, for an agent, the benefits are far more than just the possibility of selling THAT house. It's rare, in my experience, that the perfect buyer for that home will walk in off the street, but the opportunity to reach other buyers (who may also have a home to list) is outstanding if the OH is done correctly. So what are the must-haves for a successful OH?
Most importantly, you MUST have a solid plan to draw the public to your OH. In my market, newspaper advertising and directional signs do work, but to really draw a steady flow of people, you have to do something to stand out. Obviously the location of the OH plays a huge part in your signs' effectiveness but try tying some bright-colored balloons to your signs to catch the eye of passersby or use unique sign riders on those OH signs to stand out.
OK, now I'm going to get on my soapbox for a minute. There are several mistakes I see MOST agents make in regards to OH signage. I can only speak of my own market, but I consider these cardinal sins:
The BIG ONE is leaving those OH signs up when the OH is over. Pure laziness is the only reason anyone would do this but when buyers drive around looking for OH signs and they drive up to two or three houses and there's nobody there, they get frustrated and eventually give up. That's great advertising, considering that your name is in the front yard as they're walking walking away shaking their heads in disgust. When you have agents all over the city doing this, it WILL diminish the effectiveness of those signs and the general public begins to ignore them! Put the signs in position a day or two before the OH with the day & time of the OH clearly stated on the sign but MAKE SURE YOU TAKE THEM DOWN before you go home!
Add to that, if your sign says the OH begins at 2pm, please be professional and be ready at 2pm, not 2:05 or 2:30! What does it really say about us as professionals when the majority of us are never on time (again, I'm speaking for my market here)? To correctly prepare for an OH, you need at least 20 minutes to get ready BEFORE your start time. You may need to sweep up a little, change a light bulb or two, or get rid of a funky odor. Do you really want to look unprepared when those visitors walk through the door?
Third, if you really plan to have a good turnout for your OH, you need several signs directing people not just into the neighborhood but directly to YOUR OH. So often, I see a sign pointed into a neighborhood and once you turn into the neighborhood, you have 3 different directions you could go... No sign, chances are, AGAIN, the buyers will get frustrated and just go on to the next one. Or worse, they spot the other OH in that neighborhood instead of yours because you didn't direct them to yours. OK, sorry for the rant. Now back to the other must-haves:
When those buyers (you know, the ones you worked so hard to get to your OH) walk in the door, they need to be blown away! We want to appeal to all the human senses (sight, sound, smell, touch & taste). Granted, not all listings are premier properties that will knock their socks off. We can't change the house itself, but we can change the presentation of it. The MOST important part of this is C-L-E-A-N-L-I-N-E-S-S. I can't possibly stress this enough. The house you're using as your model-home-for-a-day needs to be Flawless, Immaculate, Perfect (sight)! People see a bug or dirt on the floor, they subconsciously assume "this house hasn't been taken care of... it's filthy." Make sure all floors, walls, windows, shelfs, ledges, sinks, toilets, mirrors, etc are clean. (I know, you're thinking 'I'm not a maid' and you're right but the overall impression your visitors have will directly impact YOUR INCOME). Make sure all burnt out light bulbs are replaced, all trash is taken out, all porches are swept, all the toilet seats are down, etc. Open up the windows to let in the natural light. At this point, you're a pseudo-stager. You want this house to be in the condition you would have your own home if a client was coming to visit. I know it sounds petty, but our job is to remove every objection that we possibly can from the visitors' minds.
Now for sound. Bring along a small CD player or radio for background music. It helps to calm people and make them feel at home. It also helps extinguish those awkward silent moments and lets the visitors feel like they can talk to each other without echoing through the entire house.
So, let's talk about smell. The only thing that might turn off a buyer quicker than filth is a bad odor. Light a great-smelling candle or two. Simple, right? Another option (even better) is baking cookies and having that homemade baking smell hit them like a truck when they walk through the door. Don't great smells bring back great memories?
That brings up taste. Have some refreshments on hand. Not a four-course meal, just something simple like cookies & lemonade. Not every visitor will partake but the kids will never turn them down and it makes an impression on the parents that you're willing to go that extra mile.
Finally, touch. This is where your experience comes in. Don't be a greeter ("Hi, come on in and look around"), be a host. They're in your model-home-for-a-day to find out more. Greet them professionally, introducing yourself and making a little small-talk. If you make them comfortable, they'll follow you through the house as you show them the features and explain the benefits, upgrades, etc. This is your chance to get them involved (see if you can get them to touch the pretty granite or the new carpet). Get them involved and excited about the home and you've just increased your chances of selling them your listing.
Here's another important point; Know the area. Know it like it's your own neighborhood. Know where the nearest post office, pharmacy, school and park is. Know where the nearest golf course, veterinarian and Italian restaurant is. Be a source of information... you could have an out-of-town buyer in front of you. Now, not everyone will let you do this. You can usually tell right away if you're dealing with a visitor that just wants to be left alone and look around at their leisure. That's fine, no problem. But the ones that allow it, give them a grand tour of the home, without seeming like a pushy salesman. Be a professional and an expert in the surroundings. In my opinion, RE is all about relationships, not about salesmanship. Just make them feel at ease and build rapport. They may love this house or they may not. If they don't and you've begun building a relationship, you may have a chance at that next step. They may want you to send them more listings or they may just want your card so they can reach you later.
In response to yesterday's post, I read a few comments that Open Houses are for selling that house, not for picking up buyers. Yes, ultimately, we'd all love to sell that house to the first person who walks in the door but, as I said before, in my experience, that rarely happens. Does that mean that we shouldn't still try to help those visitors in whatever way possible? I am ALWAYS trying to find a way to help them to the next step, whatever that may be for them. That may mean sending them more listings that would better suit their parameters. It may mean simply giving them information on another neighborhood nearby or it may mean just giving them your business card. Whatever the situation, if you help them feel comfortable and show them you're knowledgeable, you've got a good shot at picking up your next client. I NEVER use visitor logs or sign-in sheets. People know what you're trying to do when you use those and it's a turn-off. They're thinking "Oh, here it comes, we're going to get calls wanting us to make an offer." The easiest way to get someone's contact information is to ask if you can email them some more detailed information or other listings that may better fit their needs. That's a great way for you to stay in touch with them without making them feel pressured. I think most people want more information, they just don't want to be hounded by a "salesperson."
Now, who should do open houses? Well, that's up to each individual's preferences. It seems like a lot of agents think they're only for new agents or agents who are struggling but I think it's a mindset that we choose. We can choose to hate them or get excited about the possibility of growing our business! I personally enjoy doing open houses. I enjoy seeing new faces and getting the opportunity to help people face-to-face. I know I have a much better chance of turning them into clients face-to-face than I do on the phone or by email. It's also a great chance to get caught up on a few things if things are slow. Take your laptop or some paperwork with you. I know many agents don't like them because they're on Sundays. I wish they were during the week also and there's nothing saying you can't try it, but it is only a few hours of your weekend. Take the time back off later in the week if you choose. Jeff Dowler made a great suggestion yesterday, also:
Debbie - Nope, they don't have to be on the weekend (although most are). While most are, try being creative - have an evening OH during the week to capture folks on the way home from work. Can work well especially in some locations. I know people who have had more success then...and less competition. Just one example...
Either way, they're still a great way for all of us to get in front of the consumers and for newer agents to get lots of practice dealing with strangers... it helps them be more prepared when they actually have a client to impress.
30 Comments on How do you view Open Houses? - Part II
JAN
17
2007
I don't have any of my own listings, yet, so I've begun to sit in and do Open Houses for other agents in my office. These are great tips and tricks. Thanks!
Excellent post. If I might add a couple of points... I always invite the neighbors to the open house. Many times they have never seen the house, they might have someone that they know looking for a house, or they might be interested in seeing how you market houses. It never hurts and it's a nice touch.
The second thing is I usually design a presentation about the neighborhood. Just a simple book with pictures of the area schools and information about how fast listings go and what's been up for sale in the past.
I always bring along the homes magazine and all my promotional materials too.
Alex - you're welcome. Sitting on other agents' listings is a great way to get things going quickly. Contantly work on honing your skills in those "practice runs."
Chris - excellent points which I left out. Thank you! Neighbors can be a great resource for generating interest in listings and neighborhood information is definitely a must!
Linda - thank you. You're correct... "if we fail to plan, we plan to fail"
This is some great information, for those who are experienced but especially for those who are not. In our are, with as many open houses as there are, stadning out can rally help. There are too many for people to get to all of them, even in a particular area. Curb appeal (e.g., signage) is important; sometimes the signage is pretty gruesome. Plannng is key, as you say, and making sure there is appropriate information that looks good at the house for take-a-ways.
Excellent Post! I do a lot of open houses and agree with most of what you have to say.
The first thing that I always keep in mind when I'm hosting an open is that I am there to service the listing --- while most of the browsers won't buy this particular house, my main goal is to sell them on this house! That is my fiduciary responsibility. Now I am not a pushy salesy Realtor, rather the opposite...I am a customer service type person who just happens to sell real estate. If I clique with an individual, it's easy. And that you learn in the first few minutes of meeting them. So onto my next point...
As far as the sign-in sheets...our office and our sellers pretty much demand that we have a record of who visited during an open house. I don't hover over folks as they sign-in but I do try to make them feel comfortable enough to share as much information with me as possible. Not by asking a zillion questions, but rather by conversation. I do send thank you notes (handwritten of course) to everyone who attended. Again, my goal is to sell this house! Not to court buyers. When I do run across a buyer that I can really help, I let them know that only AFTER they've told me that this house is not for them! Until that point, I stick with rundown on this house.
Depending on the neighborhood, you may want to send invitations to the neighbors. If you have a neighborhood open house m, they may know people who they want to have live near them. Can you offer the neighbors a reasonable finders fee to find the buyer?
Ryan- Sounds like you and I approach OH very similarly. I bring small bottles of water to my OH... of course the label is covered with one of my own personalized ones. (just printed out on my printer using 2x4" labels) The first couple of OH I did, I tried to use sign in sheets, but even with small talk, or saying it's office policy, I was never able to get people to fill it out. So I stopped all together. Now things are much better. I plan on doing quite a few OH this year!
It is great to hear what works for others. I usually don't hold opens but your post makes me think twice about adding something new to my marketing plan.
In my neck of the woods (Central Fl) OH's are currently viewed as a "necessary evil" by listing agents as a demonstration of their due diligence to their sellers. There are still buyers out there but there is a huge glut of homes on the market...about 5 times what was on the market 12-18 months ago. I see so many goose eggs on the OH board and they are (for the most part) viewed as a waste of time. HOA's are a large portion of the market and frequently the sign police have confiscated the signs (sometimes as many as 4 or 5) before the 3 hr OH is even over with. Realtors are tired of wasting their money replacing all their signs.
Ryan excellent post. I too hate to see the signs left up long after the event. In my area open houses are not popular; however I have conducted them. So far I did not sell the properties by this activity but last year I picked up buyers which led to $ 7,000 in commission.
I do use the sign in sheet. It's there and I ask, don't demand, that they use it. It works for me. So far, no MMouse@Disney.com =)
As for the signs, directional signs all the way back out to the main streets are vital. Lucky you that your market allows for posting signs the day before. Here in Miami, we're lucky if they're still there a few hours later. I've not had any stolen yet but know a few agents who have.
And last, I, too, invite the neighbors. It doesn't always work (had no turnout from them the last time) but it certainly cannot hurt.
Debi, loved your idea with the water bottles. Are they labels for the house itself (I've done those and given them to clients to take to their office) or with only your info?
Great post on OH! After reading some of the comments I thought about how on our Homescape newspaper sites we tag open house listings with a banner along with a seperate search criteria. I just asked our data team to pull up the rate of impressions of OH listings versus regular listings. My take is having your OH listings tagged online will make it stand out more...will let you know soon.
I just wanted to add for those of you who sign's are not confiscated immediately. I will put open sunday directionals out on Thursday, as well as neon stickers on the home flyers and another open sunday sign in the yard. I have found that you will catch weekday traffic that may not travel that route on Sunday or Saturday. Brings tons of traffic through.
Jeff - Thank you. Takeaway documentation is a good point which I also forgot to mention.
Kaushik - Thank you.
Suzi - I pretty much plan my weekends out 3 months in advance, not necessarily knowing yet which listing I'll be holding on a particular weekend. I usually figure that out about 2-3 weeks in advance and since that's when I have to nail down my advertising.
Joanne - Thank you. I agree that our first duty is to sell that house, it just doesn't usually work out that way, and yes, you have to rule out that home for the buyer before you start offering to find them other homes. The sign in sheets I realize are required in some offices and I don't personally like them but I know others who swear by them.
Suzi - Thanks again!
John - agree 100%. Thank you!
Phylena - Good luck! By my experience, they work great if our attitude is right!
Debi - The water bottle idea is a GREAT one! I had used that a couple of summers ago and forgotten about it. What do your labels look like? And yes, I always hated the visitors logs also.
Debbie - Thank you. Glad you liked it.
Ron - I've heard stories about markets with the "sign police." That's ridiculous!
Christy - thank you... glad it was helpful!
Chris - Thanks so much!
Ken - I agree. It's all in your attitude about them. I personally enjoy them tremendously.
Caron - I agree 100%. We have to be careful that when we're hitting the five senses, that we're hitting them correctly :) Thanks for pointing that out.
Jennifer - yes, obviously, that's a huge pet peave of mine. Glad your OH are working for you!
Maggie - I'm glad that works for you. I think it just depends on the market. You're right on with the signs and I hate that yours disappear. That can sure get expensive!
Rich - thanks for the link, I look forward to reading your post.
Ed - I agree, anything you can do to make the OH listings stand out will drive more visitors there! Keep me posted please!
Sherri - agree completely! If it's possible, get them out a few days in advance. Thank you!
Teri - very true! Way underused!
Kyle - they're definitely a great way to get started! Do you do them anymore?
What a great post! I couldn't agree with you more about leaving the signs out. We see that often here but code enforcement usually picks them up after a few weeks.
Roxanne - BIG pet peave (obviously). Glad to hear your city comes and picks them up. I would thing that would be enough to deter most agents from leaving them out.
Thank you for putting this on. We will have our open house this week and can use the advice. I see from the comments that people in the business appreciate this. Novices like I do, too. Feels good to know we're doing some things right, but can always improve.
Jeri, so glad you found it useful. The psychological side of marketing is what escapes us many times, but with a little thought and evaluation, we can take things to the next level. Good luck with your open house!
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I don't have any of my own listings, yet, so I've begun to sit in and do Open Houses for other agents in my office. These are great tips and tricks. Thanks!
Alex