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Denise Says: Open Houses are the Dying Diamond of Real Estate

By
Education & Training with The Lones Group, Inc.

By Denise Lones M.I.R.M., CSP

On the weekends, I still drive around looking for Open Houses.  Lately, I've been noticing that they're becoming fewer and farther between.  There's no good reason for this, because they're truly a gem of a way to generate interest in real estate and to sell properties.

The problem is that real estate agents falsely believe that Open Houses are not a productive use of their skills.  They say to me, "Denise, I thought Open Houses were old fashioned and a waste of time."

Well, I'm here to tell you that nothing could be further from the truth.  Our technology-obsessed culture has led us to believe that the new web media is the cure-all for everything.  It's not.  The Internet can give you photos, directions, facts, and maps.  But the Internet cannot give you that warm feeling that is required before you buy a house.  That feeling when you pull into a driveway, walk into the front door, and say to yourself, "Ah!  I'm home."

The Internet itself cannot sell houses.  It can show houses, but "on-site selling" is still critical for today's agents.  You've got to get your body out of the office, get off the Internet, and get to the site.

I believe that anything you can do that is contrarian to what everyone else is doing can always produce great results for you-for the simple fact that there are fewer people doing it.

Sure, Open Houses can be a waste of time if you don't prepare for them.  A well-presented Open House can be a very successful event for you if you do it right. 

First, you should have an ad announcing the Open House in your local paper, on your website, on your company's website, and to the neighborhood.  Yes, the neighborhood!  Many of the people that love to tour Open Houses are the neighbors.  What an opportunity to peep into the world of the people next door!

Send out a nice postcard with a picture of the house that says, "My seller has invited all the neighbors to their Open House on Saturday.  They won't be home.  Feel free to come by and have a look to see how this house may compare to yours if you're thinking of selling."

When the neighbors do show up, there's a good chance they're potential sellers.   When I was a full-time agent, I cannot tell you how many houses I listed because I was smart about what I said on my postcard.  You can even send postcards to lesser-price range neighborhoods to get potential sellers to come.  There's always some "moving up" potential to be tapped.

How about your signage?  I am disgusted with most agents' Open House signage.  There's usually not enough of it and it's dull.  Instead, make it a big event.  Get some A-boards customized for you that clearly say "Open House" in an artfully designed font.

At the Open House, make sure it's a warm and inviting environment where people feel welcomed, not under any sales pressure.  Make it a party instead of a hard sell.  Treat the people who arrive as guests, not "prospects."  If it's summer, have sodas and lemonade available.  If it's winter, have coffee or cocoa.  It's going to cost you all of $20 for some muffins, cheese and crackers, and drinks.  But it's well worth it.  People are racing around like crazy on a mission to look at as many houses as possible without stopping for lunch.  So, feed them.

Don't be sitting in the kitchen.  Don't be watching television.  Be there at the door and say, "Hi, my name's Denise.  Welcome to my Open House.  Feel free to look around.  If you have any questions, I'm here to answer them."

Be helpful.  Don't be a hound.  Don't make them sign a register because it makes them feel uncomfortable.  Have information available on what's going on in the neighborhood in terms of what's for sale, what has sold, what it's sold for, the appreciation rate, etc.

Tell the story of the neighborhood.  The story must contain chapters on the schools, nearby recreation, the community, local churches, and shopping.

After the Open House, take 10 minutes to fill out an Open House Seller's Report.  This should include: how many attendees, starting and ending times, some comments, their interest level, potential buyers, etc.  If nobody showed up, I'd let them know honestly.  But at least they have a report.

Open Houses provide three important opportunities for a real estate agent:

1.       They provide the agent the opportunity to meet new potential clients.

2.       They provide the opportunity to get solid feedback from people viewing that Open House.

3.       The agent gets a good feeling of what the neighborhood is doing in terms of sales because they're forced to do the necessary research.

Be a contrarian.  Use the power of the dying diamond of the real estate industry-Open Houses.  They're still one of the most lucrative things you can do as an agent.

Until next week! Yours for marketing success!

Denise

Comments(5)

Ruth Ann Mertens-Oklahoma City Real Estate
Paradigm AdvantEdge Realty - Oklahoma City, OK

Denise,

I am with you!  How can anyone expect people to attend an open house if they don't have any way of knowing that it is happening!   I once knew a builder who was holding two houses open on the weekend, but refused to spend any money to advertise the open houses or even minimally stage them.  Of course, he certainly wasn't willing to pay a commission and hire a knowledgeable realtor who might have known how to hold an open house.  These were beautiful houses, and were both on the market for over a year!  VERY FEW PEOPLE ACTUALLY EVEN SAW THEM!  WHAT WASTED OPPORTUNITIES!

Jun 19, 2007 04:51 AM
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida
Hello Denise, I too am a proponent of the Open House, the virtual tours just can't provide justice to some homes.  What could be better than an interested person walking through that door to buy from you.  It only takes one!
Jul 05, 2007 03:43 AM
T.C. Davis
Jensen White Real Estate - Vancouver, WA

Hi Denise,

 

GREAT ARTICLE!  I completely agree.  I have met some of the most qualified buyers at open houses.  Thanks for reminding us all what an important part of our business they should be.

P.S. I really enjoyed meeting you at GRI 200 in Vancouver. (January 2008)  =) 

Feb 03, 2008 02:37 PM
Anonymous
Leslie Jacques

Hello Denise,

I was talking with a couple of agents that just attended one of your classes. They were saying that you had a statistic of 1% of sales come from an open house and that for a new agent it is good experience and exposure but to market a home isnt the best time and money spent. This article seems to contradict that theory. Has something changed in the last year?

I have a client that feels we should have a open house all the time. He has 2 condos left in his 12 unit complex. We are located near a great walking park and so he has wanted us to capture them, which we are trying. I am not totally sold on the hours and expense of a open house but I am trying to get feed back from professionals. Do you have more information available on this subject? Thank you for your help.

PS I took one of your classes last year and it was great.

Thankyou

Leslie Jacques lesliej@windermere.com

Aug 09, 2008 04:33 AM
#4
Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552

I think doing open houses are a better investment if they are my own listings.  That way, even if a potential buyer is already working with their own buyer agent, we all benefit.

Oct 01, 2010 04:49 AM