Debunking the "Open House"
As long as there have been homes to sell there have been Open Houses. With the surge in internet use by buyers, the convenience of virtual tours, and the preference of many to view homes in private, the argument now is whether Open Houses are still valid and useful in our industry. There is no question that face time in front of prospective clients is time well spent and that Open Houses give us real estate professionals the opportunity to do that, but the question still lingers, are Open Houses actually effective?
The simple answer is... It depends on how you approach them.
Open houses can usually draw two types of people; either they present great networking opportunities and a chance to meet new and REAL clients in a warm environment, or they can attract people that do not necessarily represent potential business or POSERS as I like to call them. These are usually nosy neighbours, people looking for decorating ideas or simply people who have nothing better to do on a Sunday afternoon.
The experienced agent is one who is able to distinguish between these two groups of people, qualify them and then apply the appropriate sales tactic to determine whether they can help them find what they are looking for.
Open Houses still represent, despite their drawbacks, a unique opportunity to build new contacts, showcase neighbourhoods, and receive feedback on a property for the seller- and maybe even a chance to sell the home you are doing the Open House at. The property in question is not a sound stage, but in many ways you are auditioning- for the potential clients that come through the door.
Statistically, open houses have a fairly low return- a recent study in the US by the NAR put Open House sale success at a scantly 2 percent. However, they still do represent opportunity for a Realtor. The key is to plan, set some goals and outcomes for yourself.
Know Your Competition!!!
A Real Estate Professional should always keep track of the competition in the area, as well as times and dates of the other open houses. As a professional, I don't want people looking at the other open houses in the area then coming to mine and telling me how much better the others were or how overpriced my listing is. I want them to come in and be impressed by the value of my listing. This is done by knowing the comparables and what my listing has that the others lack. Show them the value of your listing.
A side note, prospective clients who see an agent who is familiar with the competition in the area can even be coaxed in to going to see the other listings after you are done with your Open House.
Reviving the Stale Listing
Open houses are also very useful in reviving interest in older listings. Sometimes Open Houses help reenergize an old listing. This can happen in a few ways. Firstly, it helps the neighbourhood see that there is activity around your listing. Second, it provides you with the opportunity to get valuable feedback to rely back to the seller. This may help in getting a price adjustment if one is needed.
The Hot Market Open House
Open Houses that are held during times when the market is extremely active allow multiple buyers to see the property prior to it becoming available for offers
When are you going to have it?
It would seem obvious, but make sure that the date you select for your Open House does not conflict with any major sporting events or holidays—the kind that will keep the general public away in droves. Consider this- this is an investment – of time and of money. While quality does overweigh quantity, in terms of foot traffic, you still want to generate a return on your investment. You must go into this by generating a return on investment- whether it is in the actual sale of the house, or of building up your list of prospects, and your odds of getting something of value back increase with foot traffic.
If it looks get...
There is a “wow” factor that you can only get in person, that you cannot see online, or on the fact sheets. Some homes have unique qualities that can only be experienced in person. Homes and neighbourhoods have personalities that you need to be immersed in, if only temporarily, to get the full flavour. Leverage this to the fullest potential- because it is the single best answer you have to “why can’t I just stay home and look online.” Make sure the house is tidy inside and out. Remove clutter and pets; make rooms appealing and inviting; make sure paint and furniture are in good shape, and reflect current trends; remove personal items so that prospective buyers can envision themselves living there; ask your clients to park their cars elsewhere- do anything that will allow you to show your listing in the best light possible. All these details show the house is cared for and this translates to value in the minds of a buyer.
Safety First
Unfortunately during Open Houses, there does exist an element of danger-particularly for women, when it is known that a person is present in a home- and possibly alone. If you are feeling uneasy about hosting an Open House alone ask someone to join you (maybe another agent or your mortgage specialist). Feeling uneasy at an Open House means you will not be focused and that takes you off your game. Do anything possible to feel comfortable during your Open House.
The second issue surrounds the homeowner’s belongings, and integrity of the property itself. Make sure the homeowner removes or puts away any expensive jewellery or collectibles so as to ensure theft cannot occur. To reduce the possibility of damage I ask for the removal of outdoor footwear so as not have any scuffs or stains on flooring. If the open house is taking place during the winter months, ensure all walkways are salted and cleared for easy access. I also have a sign in sheet with the names, phone numbers and emails of the visitors before they view the home.
Once you have the Information, Use it!!!
The best, and most important way that you can control the outcome of your Open House, is to lay out how you are going to collect information for the prospects you will meet, and how you plan to follow up with them afterwards. Whatever your style is, be sure to follow up systematically and frequently- to fully take hold of any business that is there.
Communicate your Enthusiasm
Don’t forget that you are on stage- both for possible clients, and to sell the property you are in. Recognize the importance of being excited about being there- and in communicating this to people coming through the door. You can’t expect people to be passionate about a property if you are not. It may be a challenge to keep generating energy after multiple open houses for the same property, but be mindful of the fact that for many coming through the door—it is their first time seeing the home- and their first time seeing you. Also, use conversation with browsers as part of your strategy. Don’t ignore others, who may be genuinely interested in the home, because you are engaged in an off-topic conversation about something else entirely. Keep conversations tight and light- and have a plan to end them politely to move on to the next.
Combine Open Houses with the Internet
Over 80% of buyers start their search for a home online. Ultimately, the interest is a tool to help your property gain exposure- many people are going to narrow down their lists online- and do a lot of their legwork sitting in the comfort of their own homes. However, initial research only goes so far. And people will eventually need to commit to physically viewing a property- or scoping out a realtor in real time.
The Internet and physically seeing a property work in partnership, rather than competition. Looking at something on a computer screen doesn't tell the entire story.
THEREFORE, Open Houses are as effective as the planning and effort that you put in to them! While there are other ways to spend your afternoon on a weekend, the Open House is not a waste of time- contrary to some arguments, as long as you treat it like the marketing opportunity that it is.
