For many people, running an open house is an efficient way of getting the most exposure to sell a house, in the shortest amount of time. Whether you sell real estate part-time or full-time, open houses allow a great networking opportunity for real estate agents, real estate brokers, and buyers. There are pros and cons for open houses. Everyone agrees that open houses can only be helpful for so long. In most cases, an agent will have not more than two open houses per house. A rule of thumb is that if a house has not sold by the time the second open house rolls around, you might need to rethink their selling strategy.
Often times the successful sale of a home is directly related to an open house. A good open house that is well planned and organized is a continuing source of new business. If it is not well organized, it can be a complete waste of time for everyone involved. To be successful, change the focus of an open house from reactive to proactive. Many real estate agents tease about the “3P approach.” This approach consists of placing an ad, pounding directional signs in the ground at the corner, and pray someone shows up. The reactive scenario would be that a potential buyer shows up at the house, and is greeted by you. You inform the prospective buyer that if they have any questions to let you know, you take a comfortable seat on the couch, and wait. This is not going to help get the house sold.
A proactive approach plays out where potential buyers show up and you first start by introducing yourself, handing out your business card. Next, you provide the buyers with an informational or spec sheet, summarizing the amenities of the house as well as any warranties. At this point, you have a wide open door to answer questions and “show” the house to the interested parties. To have a well-rounded open house that reaches out to as many people as possible, some things you can do include:
Warm Call – Get in touch with past clients, family members, friends and acquaintances to provide them with the open house information and invite them to stop by. At this point, you should let them know there will be refreshments and that this is an ideal opportunity to see them. This shows everyone contacted that you are interested in keeping in touch and again, provides great word of mouth advertising.
Cold Call – In this situation, you would stop by or send flyers to neighbors in the surrounding area. Although some sellers are uncomfortable with neighbors coming to their home, there are advantages in that one of them may know of someone looking for a home just like yours.
Directional Signs – When putting up directional signs at the corners, if any of the corners are actually a part of someone’s property, you should ask permission before the sign goes up. Not only is this considerate but it also makes a connection and could spark some interest in that neighbor learning more about the sale of the house.
Be Ready – It is imperative that you be prepared to firm up an offer there on the spot. If the right buyer walks in and falls in love with the house immediately, you do not want them to walk away without making an offer. Therefore, all documentation required to close a deal should be at the open house.