Agent Open House Tutorial

DVICE FOR NEW AGENTS:

In my market area, we have a formula that works very well for everyone involved in an Agent Open House Tours - listing agents, open house guests and our home seller clients, not to mention the eventual buyers who are the real target of our efforts.

Jessica Pineda inspired this post when she wrote about her disappointing First Open House, and asked for feedback from ActiveRainers about holding listings open for brokers and agents.  She got lots of it, with a gold star and about 40 comments so far.  (Congratulations, Jessica!)  When my comment on her post became way too long - long enough, in fact, for a blog of its own - I just decided to put this topic on my blog "to do" list.  Jessica, I hope you and a few other agents find this information helpful.

Why hold an Agent Open House?  In this market, with so much unsold housing inventory, agents are struggling to get showings on their listings - let alone offers.  By holding an agent open house, you are making it easy for other agents to preview your listing, which hopefully will increase the likelihood of your listing being shown rather than another property the buyer's agent has not seen (perhaps one listed with a "limited service" broker who doesn't charge enough to cover the expense of marketing like this). 

Another benefit of the Agent Open House is that it will help demonstrate your VALUE to your poor frustrated seller clients, who will see that you are working hard to accomplish a sale for their home, and not just leaving it to luck.  I've sold many a home only after seeing it at an Agent Open House, and I'm sure that most experienced agents who were around in the last buyer's market can tell you the same thing. 

Okay, assuming you're convinced you want to take on this project, what's involved?

A successful agent open house tour requires a lot of preparation and some financial investment by a LEADER and three or four PARTICIPATING AGENTS who are affiliated with different offices and have nearby listings.  If you're really lucky, you have an assistant who can handle the logistics for you so you can continue your work of listing and selling homes.

LEADER:

1. Preview properties near the listing you wish to hold open, and select some that are listed with other offices, in Open House condition.  If you include homes listed with five different offices, presumably at least some agents will come from each office.
2. IF there are several qualifying homes, contact the listing agents and obtain preliminary commitments from them, including a consensus regarding the date and time.  Be sure to explain what your expectations are for them, based upon this checklist.
3. Collect pro-rated $$$ from participating agents IN ADVANCE so that a drawing for a $100 gas card or restaurant gift certificate can be used as added incentive to attract attendees.  Until you have the $$$, you don't really have a FIRM commitment from the participating agent.  You can make it easy for them, if you want, by having them Paypal the money to you.  With five participating agents, that would be just $20 each.
4. Purchase the gas card or gift certificate now, because you're going to be very busy as the date gets closer for the Agent Open House Tour.
5. Determine the order in which you want the houses to be viewed, based on the most convenient route for guests.  I have found it easier to just make an executive decision on this, and not seek input from the participating agents.  Of course, if you get unsolicited input, you'll want to consider it as you make your plans.
6. Assign responsibilities to each participating agent, based upon the order of homes.  For example, House #1 - Yummy Appetizer; House #2 - Salad; House #3 - Main Course; House #4 - Alternate Main Course; House # 5 - Dessert AND responsibility for collecting business cards (initialled by the participating agent at each house) from the guests and handling the drawing when Open House tour is completed.  Note:  If one of the homes sells before the event, one of the main courses will not be missed.
7. Design a flyer to promote the agent open house, including information about the $100 drawing and listing the properties in order, including  photo, the MLS #, price and directions from House #1 to House #2, etc.  Be sure to include a statement that participating home sellers and prospective buyers are welcome. 
8. Distribute a digital copy of the flyer to participating agents so each may print and distribute copies to their office and their sphere of influence.  (Call to confirm they received it.)
9. Phone participating agents a day or two before the event to confirm property is still available and they still plan to participate.
10. Assuming the leader is also one of the participating agents, you will have the additional tasks on their "to-do" list.
11. At the conclusion of the Agent Open House Tour, collect all the business cards at the last house (If your listing is the last house, all the better!) and draw a winner.
12. Immediately notify the winner - he/she might still be in the area and come back to pick it up.
13. Make a broadcast phone call (if you don't know what that is, watch for my post on the topic in the coming weeks) or send emails to all the guests who attended the Agent Open House, thanking them for coming and attaching another copy of the flier to help them remember all the properties they visited and notifying them who won the drawing. 
14. Thank all the participating agents, and ask for their feedback to help you with planning future Agent Open Houses.

PARTICIPATING AGENTS:

1. Promptly accept or reject invitation to participate in the Agent Open House Tour and WRITE IT IN YOUR PLANNER or on your calendar now, including week-before and day-before reminders.
2. Contact your client to invite their participation in the event and explain the following benefits:  increased exposure of their property to agents in five local offices; feedback from unbiased agents in their marketplace; no cost to them because you (or your assistant) will provide food, set-up, and clean up (unless, of course, they want to do this - some sellers may appreciate the opportunity to "do something" to help sell their home).   
3. Explain to your client that they will want to have their home showing its best the day of the home tour, with a freshly manicured yard, beds made, clean kitchen and baths, clutter out of sight...
4. Once your clients understand what is involved, obtain their permission to include their home in the tour. "In writing" is always a good idea.  I learned this lesson by having a few homeowners tempted to back out at the last moment.
5. Send your $$$ to the Leader, as your contribution for the drawing.  This is your FIRM commitment to participate in the event.  Until you send this in, you are at risk of another nearby listing agent taking your place on the tour.
6. When you receive a digital copy of the flyer, print enough copies for everyone in your office and neighboring branches of your company - AND DO IT!  Distribute them, that is.  You may wish to distribute them to neighbors of your listing, as well - that's optional.
7. Make feedback forms (soliciting opinions about price, condition, recommendations, etc.) and property flyers to have available at the property for guests.  Be sure to ask agents, on the form, if they are currently working with a buyer that might be a "match" for this property.
8. Purchase or prepare the food for your stop on the tour.  Be sure to take serving pieces, plates, napkins, beverages, ice, cups, and TRASH BAGS.  In good weather, I also take a folding table, chairs, and a cooler to set up in the yard, rather than inside.
9. Arrive at the property early enough to make sure owner has adequately prepared the property for showing, including lights turned on, curtains open, pets confined, etc. 
10. Strategically place Open House signs to help guests find your property AND get a little extra visibility in the neighborhood.
11. Require guests to give you a completed feedback sheet in exchange for your initials on the back of their business card.  (Agents will take this card to each house, and turn it in at the last house for the drawing.) 
12. Leave a note at the property thanking the home owner for having the house ready for Open House and telling them how many people came.
13. Contact your clients within 24 hours to share the agent feedback with them and discuss how you and they might address the feedback (price adjustment, neutralize a room, make repairs, etc.) 

I've been following this routine for years with Agent Open Houses, and I never realized how long this list would be!  Surely no sellers could possibly appreciate how much work and expense is involved.  Maybe we should share this information with them as part of our follow-up - to help them appreciate the VALUE of a good listing agent (one of my pet peeves, in case you didn't know).  

If this is a new formula for you, I would love for you to come back and post in the comments after you try it. You might find a shortcut or better way of handling some things on this list that would help me and others.  And, of course, we all like to hear success stories, if a sale should result from your Agent Open House Tour.