I am not sure why, but a lot of realtors believe in the myth that open houses are only for those just entering the business.
The fact is that open houses are one of the most effective ways to generate business in real estate.
But why are open houses so effective?
You have potential buyers and sellers coming to you.
Those buyers and sellers have already identified where they want to live, and/or the fact they want to sell.
You are instantly face to face, and have the ability to interview for the job right there.
But you can’t just put up a sign and hold an effective open house. Here’s what must be done to develop an effective open house strategy:
#1: Identify an area, and be consistent with it. Think of open houses as your “storefront” where you get to set up and meet potential buyer/seller clients in the area you want to work. Most realtors do open houses all over the place, which is a mistake. Instead, identify an area in which you want to build up market share, and then hold consistent open houses in that area. Current homeowners then begin to see your open house signs set up every weekend there, which increases consumer confidence as potential clients are seeing your name on a consistent basis. So pick an area and start to build your brand.
#2: Signage matters. Before you dive into this aspect or your open house strategy, make sure you check with your local government to see if there are any sign restrictions. If you do not have any sign restrictions, putting out 30+ signs will greatly help increase your brand awareness and drive more traffic to your open house. If you are located in an area with a sign restriction, do not get discouraged, as all your competition (other realtors) are held by the same restriction.
#3: Pre-market the open house. Run a targeted Facebook ad for the area for three days leading up to the open house. Create a neighborhood open house flyer, and hand deliver/door knock the closest 400 homes to your open house.
#4: Set up properly. On top of the 30+ signs placed around the neighborhood, also, purchase a couple tall, attention-grabbing open house flags to put in front of the property. You will get a lot of attention from people currently living in the area, but that is good. When they think of selling, you want to be the first person that pops up in their mind.
#5: Also, put a sign on the door that says, “Per Sellers Request Please Sign In,” and also place this sign on a table just inside the door and have your “Guest Registration Sign In Sheets” at the same table. And don’t forget to include a nice property flyer with all the property information, as well as the different mortgage payment options.
#6: The Tour. Once visitors have signed in, give a thorough tour. You can’t, of course, give a tour to everyone if the open house is really busy, but focus on giving a great tour to those you are able. Ask engaging questions where you can connect with them and identify their goals. Example questions: “What is it about the area you like so much?”, “Do you work near by?”, etc.
#7: Ask for an appointment at the end of the tour. Say something like: “So, what do you think about the property? Does it meet your needs, or are you looking for something different?” (Most will say they are looking for something different as ½ of 1% of homes sell from that open house). In that case follow up with something like: “Great, just so you know, I am not here to just sell you on this house. I am here to identify what your goals and needs are, and if this house meets those, then great, and if not, to identify what your goals and needs are, and then to find you exactly what you are looking for. Based on what you have told me what you are looking for, I know of several homes which I am confident will meet your criteria. I get out of here at 4pm today, and can meet you then to go show you those other homes. Is that something you would like to set up?” Most will not want to set an appointment right there, but if you ask enough people, you will absolutely get some that say yes. Read more about leading from a place of contribution to turn more conversations into appointments here.
#8: Put everyone into your database, and follow up. Read more on effective lead follow-up here.
If you plan, setup, and execute correctly on your open houses, you will absolutely get great results, so follow these steps, and go dominate your real estate business with open houses!
Thanks for reading!
Joshua Smith, Realtor/Mentor/Entrepreneur
-Voted 30th Top Realtor in America by The Wall Street Journal
-Over 5,000 Homes Sold & Currently Selling More Than 1 Home Daily