Of course I know there are varying opinions about whether or not open houses are a good idea. Some agents think they are a waste of time. Some sellers don’t want “looky-loos” in their homes. And who wants to give up a Sunday? On the other hand, the National Association of Realtors® annual Profiles of Buyers & Sellers constantly ranks open houses as an important source of home buying research. Their statistics indicate that more than 50 percent of buyers find open houses valuable.
Whether you are a big believer in open houses or not, putting a bit of strategy into one can change your perspective on what really makes an open house successful.
In this market, both sellers and their agents are looking for ways to breathe life into the market and stand out from the competition. I am a believer that well orchestrated open houses can be an important part of a comprehensive marketing strategy. Let me repeat that: well orchestrated open houses. When an open house looks neglected, comes with a lurking odor, and the only things in sight are a Realtor® and a plate of untouched chocolate chip cookies, more is on the line than a missed sales opportunity.
Many times, open houses just don’t make sense. For instance, a home that is off the beaten path or in a gated community may not be a good candidate for an open house. Certain price points are more appropriate for open houses than others. As the Realtor®, it’s important that you consider the pros and cons to open houses and articulate your rationale to your sellers. Hosting an open house just because your seller wants one is as bad as NOT having one just because you don’t want to sacrifice a weekend.
If you do decide to host an open house, consider these ideas to make it the Best Open House possible:
(1) Commit to making it the best it can be. If you are going to spend your precious time hosting an open house, make it worthwhile to everyone. Make it pay. The sellers probably wouldn’t choose the inconvenience if they had the choice, so if you would truly rather spend your time doing something else, don’t do it. Train and place another agent who meets your high standards instead.
(2) Set expectations for the sellers and set goals for yourself. Make sure your sellers know what they need to do to prepare their home so it’s ready to show. They should understand that when you get potential buyers to show up but the house shows poorly, the open house could actually hurt, or certainly delay, the process. Go over a “to do” list of what you and the seller need to do to make each open house a success. Also, make sure to communicate your expectations about how many people you hope to have so the seller shares your understanding about whether the result was good or bad.
You should also be clear with yourself about the reason you are hosting the open house. First, of course, is to show and sell the home. But I always set other goals. For example, I set out to meet at least one “A+” buyer and add five other potential buyers to my database. I also hope to meet at least three of the neighbors. One day they may be selling and will already know how I market and sell homes.
(3) Whether you conduct one open house or many for a property, set the dates for the entire month so you and your sellers can plan and live your lives. Consider holidays and other local events. I’ve found Super Bowl Sunday is not a good day for open houses in my area but Mother’s Day is usually very busy. I also suggest alternating weekends or even going every third weekend to keep the open house fresh and busy. I hate open houses where no one shows… the message to the potential buyer who does show up is that no one else is interested.
(4) On the other hand, a busy open house is full of energy. People buzzing about how great the home looks. This is where a buyer wants to live. Make sure you do what it takes to build traffic, especially if the home won’t be open every weekend. The local paper may work, but remember that 80 percent of buyers are looking on the Internet. Make sure to list your open houses on the MLS site, Realtor.com, your personal and property websites, and sites like Frontdoor.com, Zillow.com and OpenHouse.com. Even Craigslist.org can be a great way to attract potential buyers. In addition, I prefer a personally signed invitationletter to the neighbors instead of an impersonal postcard.
Of course, make sure your open house signs are up as early as possible and in high traffic areas to alert buyers who are out early for church, their morning workout, or Starbucks. If you are going to do it, do it big. Put as many signs out as possible and make sure your signs look better than your competitors’. (By the way, make sure you are well aware of local ordinances about open house signs.) Remember, someone hires you because you are the best. Everything you do should show it.
(5) Show up early and don’t let anyone in until it’s time… remember “on-time” is15 minutes late — meaning if you are showing up at the advertised time you are already late. You want to be prepared and want the space to be ready before anyone sees it. Walk through the house and make sure the lights are on, window treatments are open and toilet seats are down. (My pet peeve.) Look at each room through the eyes of a potential buyer. Is there anything you can do to give it a better “Wow!” factor? If so, do it.
(6) Do your homework. Be sure you know what questions will be asked and what your answers will be. Know the house and be honest. Don’t guess when you don’t know an answer. Imagine that everything you say is recorded. Then, how would your answer sound if played back in the future? Let’s say, perhaps, in a courtroom.
In addition to the house, know everything there is to know about the neighborhood. What other homes are on the market? How do they compare? Are they open today? What about the schools? Restaurants? You will get more new clients by impressing them with your honesty and knowledge of the market than you will any other way.
(7) Skip the gimmicks. Some agents swear by the idea of “extreme” open houses: BBQs, bouncy castles or giveaways. While there may be an exception, these gimmicks usually don’t attract real buyers and can be a giant headache. Instead, raise the bar and present the house in its best light and be the best possible advocate for the house and its neighborhood.
(8) Remember, we call it hosting an open house – like hosting a party. You want your visitors to feel welcome and comfortable in what may be their new home. Greet your guests; don’t interrogate them. Remember, you want potential buyers to feel at home. Quizzing them about whether or not they have an agent, forcing them to sign in or following them around doesn’t do that. It certainly decreases the potential for meeting future clients. Instead, acknowledge and welcome everyone as they enter.
I’m not fond of walking through the house with guests. I want them to experience the house on their own. They don’t need me to tell them about the basement or the garage. I choose a controlling position near the front door and work the open house from that location.
Let guests know that you are available to answer questions and highlight a feature or two they can glimpse on their tour. As they appear to be wrapping up their visit, ask questions and volunteer your expertise about the home, neighborhood and market. In my opinion, it doesn’t matter if they already have an agent – give ‘em what you’ve got. If they do have a good agent, they will appreciate your professionalism and leave with a better feeling about the home. If they don’t have an agent or have one that seems to be inferior, you will have a new client if there is a connection.
I’m not a believer in the way so many choose to start a conversation: “Are you working with an agent?” It’s like asking, “Do you need any help?” in a department store. Does that ever get any real conversation going? And do you really want to come across like you are trying to steal someone else’s client?
Instead, a good opener is, “How long have you been looking?” It’s conversational, not too direct and the answer will tell you how to proceed. For example, “About ten years” will generate a different response from you than “We are just getting started.” If it feels right, I often follow up with: “Do you have someone who is emailing you new listings as they hit the market?” I know agents who now swear by this approach.
(9) Be safe. Sadly, there are horror stories about agents who are harmed, or worse, at open houses. This is another reason that it may not make sense to host open houses in low traffic areas and why you should invite as many people as possible. While I’ve never known anyone personally who has had a problem, better safe than sorry. With that in mind, remember to:
- Expect the best, plan for the worst.
- Be aware of your surroundings.
- Trust your instincts.
- Keep your cell phone with you at all times.
- Keep pepper spray with you.
- Keep visitors out until you are ready and lock up before closing.
- Don’t let anyone in after you have closed up.
(10) Follow-up. Be sure to follow-up with the seller when you said you would and report, honestly, how many people there were and whether the response was positive or negative. If you gleaned new ideas or realized some hidden potential that could improve the next showing, such as removing furniture or making a repair, take care of it as soon as possible.
Also, follow up with any prospects that you met during the day. Drop a handwritten note to a neighbor you spoke to and call or email anyone who left legitimate contact information on your guest register. The call may go something like this:
“This is Anthony with Sotheby’s International Realty. We met this afternoon at the open house I was hosting at 123 Ocean Avenue. I wanted to thank you again for coming and see if there were any other questions I could answer for you.”
Again, don’t be overbearing or pressure your contact. Call with sincerity to offer your knowledge and expertise. (If you are going to make calls, be sure your guest registry states that you will follow up and that by signing, guests give you permission to make contact.)
These are only a few, and some would say the more obvious, suggestions to conducting a profitable open house. There is so much more that savvy agents are doing now to make sure that they and their clients benefit from a few, well-spent hours. Unfortunately, if you spend time visiting some open houses, you will also find that far more are doing less than they could for their clients, yet expecting far more results.
Raise the bar on your open house. Be creative. Be responsible. Be the agent your sellers expect you to be. Review each aspect of your open house and decide how you can elevate the process. You and your clients will be glad you did.
If you are interested in learning more, consider registering for my 38 Tips to Make Your Open Houses Pay webinar. You can learn more at AnthonyHitt.org.
Anthony Hitt is the #1 Webinar Trainer for Realtors® and teaches on a variety of topics of interest to real estate agents including business planning, lead generation, social networking, blogging, Internet technology, successful open houses/listing presentations and best business practices and systems. Visit AnthonyHitt.com or AnthonyHitt.org to learn more.
Mon, May 11, 2009
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