Some real estate agents think open houses are a waste of their time and money. They complain that most of the visitors at an open house are nosy neighbors that just want to look around, or non-serious buyers that are kicking the proverbial tires, or even potential sellers there to research their competition. However, most agents swear by open houses as an effective way of; marketing their listings, prospecting for new clients, and generating additional leads.
While the market in Denver is still a seller’s market, particularly below $1 million, available inventory has increased over the last several months. Agents want to set their listings apart and get as much exposure as possible. This includes the effective advertising and execution of at least one open house, usually within days of the listing going active. Agents may also consider an open house in concert with a price reduction, as it’s a good time to refresh the listing and drum up fresh interest.
You will want to advertise the open house at least a few days in advance. Add the time and date to the listing in the MLS and confirm that the details get syndicated through to other websites where the listing appears. (Think Zillow, realtor.com, etc.) It may be good to establish a small advertising budget and publish an ad to social media such as Facebook, Instagram and others. These tend to be less expensive ways to advertise and may increase traffic and overall interest in the listing.
For the day of the open house or even the day before, consider printing 50-100 flyers as an invitation. Include your contact details as well as the address, time and date of the open house. Consider also including some of the high points of the listing, some photos, any unique features, and so forth. Knock on each door in the surrounding neighborhood and personally invite each of the neighbors. Leave a flyer if nobody answers the door.
Contrary to what some agents think, it’s not a bad thing to have the neighbors attend your open house. They often have friends and family that may be interested in moving to the neighborhood. They are also potential sellers and if you knock on enough doors, you will eventually find another property to list. When one listing goes on the market, there will usually be a few that follow so you always want to do an excellent job. If you present a professional open house, generate some buzz and traffic, and get the property sold in a timely fashion, the neighbors will be more likely to ask you to list their home.
Sticking the open house signs in the ground is important and you can do it well before you open the door. Some agents think there should be at least 12 signs, and some say at least 20. Place the signs in high traffic areas and direct drive-by traffic right to the property. It’s a good idea to post some directional signs at the major intersections nearby, and at any major turns on the way to the house. Some HOAs, covenants, or neighbors may not like having the signs around so be sure you are sensitive to their concerns for proper placement. Don’t be surprised if somebody makes off with a sign or two!
Be sure you confirm any special instructions with the seller. For instance, if there is bad weather, you may want to have booties available, so visitors don’t track mud into the home. Make sure any valuables and prescription medications are locked away. Turn on all the lights and unlock the back door. Adjust the thermostat and open the windows if needed. You may want to serve drinks or light snacks. Whatever you can do to make the house inviting and appealing.
Your number one priority is to the seller and to get an offer on the home. You should be able to discuss the unique features, understand the nearby market, compare any active listings, as well as any recently sold or under contract. You never know who is listening so present the home in the best light possible. Secondarily, you will likely meet some prospective buyers who are looking for something else. If they are not already represented by an agent, you can offer your services to help them find the right home for their needs. Only after you finish the open house of course. Some agents ask visitors to sign in while others prefer a more conversational approach.
Once the last visitor leaves, be sure to leave the house the way you found it. Turn off all the lights and lock the doors. You may want to reset the thermostat and close any windows that you had opened. Take any trash with you and be sure to leave the property secured. Gather your signs and be sure to follow-up with any contacts you have made in a timely fashion. Open houses can help to grow your business but only if you prepare beforehand, execute professionally on the day of, and follow-up afterwards as systematically as possible.
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