After a week away (thank you Robin!), I'm back in the saddle, talking about turning Prospecting Cheese into Soul... Today's topic is the non-cheesy Open House.
First, allow me to pontificate for a moment that I believe the first priority of any open-house-giver is to attempt to sell that house. After all, someone owns that house and has hired you, or an associate of yours to care enough about his listing to try to sell it. And no matter what you tell a seller ahead of time, he really does expect the offers to start pouring in at 4:05.
So, just remember that your primary obligation is to the seller, not yourself. Lecture over.
(For a discussion on whether or not to even hold open houses, click here for my series on the topic).
All that said, most of us do look at an open house as an opportunity to pick up buyers. Maybe even sellers. So, how can you do that without resorting to Old School Cheese? (That sound kinda gross, doesn't it?)
My best advice for figuring out what NOT to do is to spend a sunny Sunday visiting other agents' open houses. Egads, some of us are cheesy. Or, if not cheesy, just plain dumb, aka, unprepared. I visited an open house last winter and eavesdropped in as a visitor asked the agent how old the furnace was. The agent smiled brightly and said those magic words: "I don't know, but I'd be happy to find out for you!" This piqued my curiosity, so I actually went into the basement and, get this - LOOKED at the furnace. It was obviously brand new. I'd think that anyone who had ever seen a furnace could tell that. Of course, that would have meant that the agent would have had to have made that long journey down the stairs to see for herself - but clearly that was too much to ask.
I've also heard rumors of agents requiring ID before allowing visitors into the property. Okay, maybe in a multi-gazillion dollar home, but your run-of-the-mill listing? Puh-leeeeeaze.
Do I require sign-in? No, I don't. I just don't feel comfy doing it, but it's not something I advise against. When I hold an open house, I'm looking for quality over quantity. I'm hoping to connect with one or two visitors; someone I have a natural rapport with. When I find that rapport with a visitor, it's easy for me to draw them into a conversation about real estate and most of the time; they ask ME for my card. I like that. If I had people sign-in, I know I wouldn't follow-up unless I felt that rapport, so I just don't bother.
When you hold an open house, pretend that there's a hidden camera watching your every move (who knows?). Don't do anything the seller wouldn't approve of. Don't criticize the house (that guest you're talking to might know the seller and report back, or he might be a seller prospect himself and be less than impressed with your professionalism!), or aggressively direct visitors toward your fancy list of "other properties they might consider instead." It's far less cheesy (and effective) to be able to simply discuss the market conversationally, rather than push a pre-prepared package on guests.
(If you're enrolled in the SWS Winter of Soul, we'll be doing a thorough discussion of Open House Strategies on January 23!)
Next up... non-cheesy greeting cards...
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The Daily Seduction
Tips & Inspirations to Generate Business from the Very Important People Who Know You
Jennifer,
In our area few agents really even want to do open houses. But I enjoy them...and I really enjoyed your fresh perspective. I have a sign in but have been thinking about dropping that....I too want to connect with the client. Just the other day I had a client call me about a year after meeting her at an open and at her request sending her listings. I just let her look till she was ready and when she was she called!
Hi, Jennifer. People come here to Jamestown, Tennessee mainly for the trail riding in Big South Fork National Park and, while they may be interested in looking at property while they're here and meaning to stop in at an open house, I find most of the time that they end up being too tired and just don't get there.
Hi Jen, I do quite a few open houses through out the year and I agree with you. If it is my listing, my primary goal is to sell the house for my client! If the house is occupied, I insist that the visitors sign in. And yes, if you are an agent holding the house open for another agent in your office, do your research and find out as much as you can about the house!
The open house is one of the tools that doesnt do a lot for the seller, yet they all want them. but it is a great opportunity to gain some feed back to pass along to the seller, and of course to work on building that SOI of people you meet and "wow" with your knowledge
Please Jennifer, pontificate until your heart's content. It's rare to sell a home from an open house so it's imperative to have your best foot forward when you're hosting. I appreciate an owner who can take the time explaining and showing every detail of their home, especially the nuances of living there. Barring that, a full reconnaissance mission may be in order when you're on your own. About the cameras and or spies, yes, that goes without saying. Thanks!
I have gotten a lot of business from open houses, I never use sign in sheets anymore. Too many people just lie. Once I establish a rapport with someone at open house, they usually give their real information. and you are right, we never know when someone at the open house knows the owner and will report back to them what you say!
Jennifer, I love to do open houses. It's one of the easiest ways for me to generate new business. All your suggestions are right on target. -Marian
Jennifer while agree with much you have to say in this post, I must disagree with not using a sign in sheet. I have used this process for years and find it an excellent way to get contact information from potential buyers. This enables follow-up with even the prospects that are still in the early buying process ad has produced a number of successful buyers for me. There is an old adage in sales, if you don't ask for the sale you won't get it. While you may strike up a great rapport with 1 or 2 visitors to an open house what about those that could have slipped by because they weren't asked for contact information and never followed up with. Thats right the other guy gets that sale.
Bill
You have presented some good points to ponder (or pontificate! Not a word you get to hear everyday!). I'm not a Realtor, but have to agree, that the Open House needs to primarily be in the interest of the home owner. It is their property, and they went to a lot of trouble to prepare it for the afternoon. It should also be the Realtor's primary focus during that time.
Open houses are still in full force in my area although the average home gets maybe 2 visitors. I love the furnace story but sadly will now defend myself. About 5 years ago when I started in RE I offered and did open houses for agents in my office. Not one of those agents gave me anything but a listing sheet of the house. Nothing - nada -zip. No advice, no information, so I guess no caring other than to pacify their client. Now the only person allowed to do open houses on my listings is me.
Hi Jennifer -
I have always liked doing open houses, and once I actually sold the house to a buyer who walked in! (I hear that only happens once in a lifetime, so I guess I had my turn.)
It's good to get feedback directly from potential buyers, and I don't even mind meeting the nosey neighbors and lookie-loos who always come by. I'm very sociable and relaxed, and serve freshly baked cookies and just talk abut what ever is going on in the local community, real estate market, sports, home decorating, etc.
Many people seem to warm up to me, and want to give me their contact info for following up to help them buy or sell a home. It has been a very effective way for me to get business!
Jennifer, this is a great open house post. I can understand rapport over signing in, but it is more for a sense of security and having those people in front of you to be able to say what they looked like, were wearing, etc. The crime during open houses in my area has gotten out of hand, and that is why I am not kidding when I am saying why I want them to sign in. Are they putting a real name? Of course not. Can I tell you approximately how tall the husband was and what car they were driving? You betcha. A great agent in my area helped stop a crime spreeing man because she paid attention to these details...
Good points, Jennifer. I've never had sign in sheets for the same reason as you ... And I love the advise about acting as if a camera is filming you.
Jennifer- I will not allow any of our buyer agents to do open houses without IDs any longer. Agents are being murdered at open houses. I have not done one in years and I love it when a seller says that their last agent did an open house because then I get to say:
Well, why do you think they are doing open houses? To get more buyers of course. If the buyer that looks at your house does not like your house, what do you think the agent is going to do? They are going to take them around to show all your competitors' homes. Do you know why I won't do that? Because if I am busy showing a buyer that is NOT going to buy your home other homes, I can not be at the same time working on my laptop to find the right buyer for your house, I can not be on the internet marketing your home if I am showing houses to this buyer.
They always get that and never expect us to do an open house:)
But aside from using this as a great marketing tool-
We just got an alert from one of our boards that a mass murderer is going to open houses. ID? You bet! Better yet, if you do open houses, make sure you have a partner with you. It simply is not worth compromising your safety or life.
I don't hold many open houses, but I will if it's one of the properties where the inside really is the main attraction, and the outside looks a little rough, or if the seller insists and my normal marketing isn't working as well or as quickly as I'd like it too.
I use sign in sheets, but don't insist on them. One thing that I've found to be a little more effective are "listing postcards " for the particular listing - I go on VistaPrint [and have used a laser printer & cardstock in a pinch] and print 100 or so cards with a full color photo & home info on one side, and my contact info on the other. [or sometimes a photo/address only on front & the deatails on the back w/ my info]. I keep a stack of these near the door or on the kitchend counter with the info sheets, and find that people are much more likely to pick them up and call than to sign in with a legitimate contact number.
That said, I do worry about safety, and I never hold one alone. Most of the time my husband comes with me, and a few times when he's been busy I've bribed a male friend to help out [and usually repaid the favor by buying or cooking dinner, or helping him in some way]. I know this might be out of some people's comfort zones, but I also do not do showings or open houses unarmed [I carry pepperspray & a kubaton key chain, have a gun permit and have been trained in armed & unarmed self defense - may be paranoid, but I worked as a prison guard for several years in the same area I sell homes in, and never know who might show up].
When I posted this yesterday, it hardly got any comments and then suddenly they started coming in! Ahhh, I see... a Gold Star! Thank you, Gold-Star-Givers!
Regarding safety and open houses - I guess I err on the side of trusting the world. Not saying that's the right thing to do, but I've just never felt unsafe in this career. I don't mind putting buyers in my car, I don't have a problem showing houses to sign-callers and I don't worry about protecting myself at open houses. I'm not stupid - I don't go into basements with strangers and I did get a bad vibe from someone, I'd probably be more careful, but so far that hasn't happened. Obviously if it did, I'd regret my trusting attitude! Anyway, I'll never encourage anyone NOT to do what they need to do to feel safe; I'm just sharing what I do.
I really don't want this blog to turn into a discussion of the pro's and con's of holding open houses (although if that's where it goes, so be it!); I think every listing agent ought to offer to do at least one instead of trying to talk a seller out of it. That's my opinion and I'm sticking to it!
Regarding sign-in sheets, I know that many agents use them and I have no argument with that. I just don't - I'm uncomfortable with it, so I don't bother.
I actually hate open houses, but I actually love open houses. What? Who said that? lol I hate putting out the signs, and getting all prepped for it, but once I am there, I don't mind it at all. I don't do it for the buyers as much as I want to sell the darned house. My experience is that folks looking to buy a home, most often know which neighborhoods they would prefer, and look for open houses in those neighborhoods.
Open Houses...are they productive in your area? How often and how long do the agents do them?
I actually sold a house to a buyer who came through the open house. I don't mind doing them. Lately I have run across so many sellers who don't want their home held open.
Amen to No-Cheese-Open-Houses! I held one a few weeks ago on behalf of fellow agents in my office who list lender-owned properties. I spent a lot of time preparing an open house packet that I would find useful if I were shopping the house, did not follow people around but invited them to stop back by my table in the dining room should they have questions, and had taken the time to check on the furnace ahead of time (funny you mentioned that!). It was the most successful open house I had ever held - not only do I have the house under contract now with one person that came through, but he has a place to sell in the new year, and I have another buyer who asked me if I would be his agent as he tries to find a new home. I will never go back to the old way of open houses again!!! Thanks for your continued insight on everything real estate!
Jennifer, all common sense approaches to Open Houses. People make the whole open house experience too structured in my opinion. There is either a fit with the agent helping the visitors or there is no connection there. ID's for open houses? Wow, either a rough neighborhood or someone is worried about their crystal being stolen.
Well I've found that open houses are a waste of time frankly. Often there isn't any traffic so to speak, let alone anyone who really has seriouse interest. Often most people already have an agent that they are working with so dropping into an open house if at all is mostly just curiosity....
Patricia/Seacoast NH
Hi Jennifer - Great advice. Although I am personally not a huge fan of open houses, at times, they are necessary to showcase a listing (we are finding here in Phoenix that most of our listings are under contract before they have been on the market more than a few days, so the concept of an open house, at least for me and my partner, is becoming a bit obsolete). I have been in some really crummy open houses, and what you say is so true. Look at the furnace! Haha! Happy Holidays to you and yours!
Jennifer - thanks for the great post. I enjoyed it and am really enjoying the dialogue you have generated.
As for sign-in sheets, I don't use them for the same rapport reasons you cited. Bill's point about not getting the sale if you don't ask for it is a good one. I, however, have never really felt comfortable with the term "sales agent" myself, because, while I need the commission to feed my kids, I don't consider my primary purpose as a Realtor to be making sales. I see myself as a provider of a service, an educator, a consultant, someone who has been entrusted as a fiduciary. I feel, as you alluded to, that the relationship I have with the client has to be one of comfort and trust, and I feel pushing the sales end too hard undermines that.
That said, Bill's perspective is a perfectly valid one. I also understand that we do need to market ourselves - if we don't find a way to make that initial connection - to get our names out there - then we can be the most trustworthy and competent Realtor in the world, but we won't be in the business long...
As we've discussed, I enjoy doing open houses for properties sometimes depending on the property and the seller.
I'm looking forward to your discussion next month.
I actually love open houses! I like your advice of pretending there is a hidden camera in the home and not doing anything the seller wouldn't like. My last open house, the seller sat in his office right off the kitchen the whole time and he was kind of hidden, but I felt safe for one, and he liked the way I talked with the visitors. He could also hear all of the feedback. I actually sold the house at that open house (that never happens!)
We think open houses can be a great tool. First of all, we love "nosy neighbors". In our market, one of the most important tools for getting a house sold is creating a "buzz" and the more people exposed to a property, the greater the chance that someone who sees it will mention it to a friend, co-worker or relatve. Frequently, we get showings on our listings from individuals who first were directed to it by someone who saw it at an open house.
We often encourage other agents in our office to "sit" our open houses but the expectation is that their primary goal is to represent the property in its greatest light. It also allows for us not to be in the uncomfortable position of representing the seller but implying to the potential buyer that we are representing their interests in the same property. This is not to say that we never sit our own open houses, but as someone mentioned previously, we are seeing many, many sellers who don't want their homes held open.
Open houses are a great way to market a property and to please a seller as well. And if the agent is pro-active in the process, it is a great way to lead generate at the same time. Is good for exposure and getting your name out there. We have done business with a buyer or seller a year later after they met us at an open house. Now that is cool. We are not big on doing them every weekend, but I think when the time is right, it is a great tool indeed.
Great post. Very informative. Thanks for sharing with all of us.
I think that they are harder to do this time of year because of the weather and how dark it gets. I also think that not all houses should be held open.
I agree that the first purpose of the open house is to try and sell the house. And quality is always better than quantity! I go back and forth on the sign-in sheet, but really feel more comfortable not using one.
Cheesy stuff that drives me crazy: the agent is on the phone all or most of the time and doesn't at least smile and greet me. Or he/she is busy on his/her laptop...ditto with no greeting. An agent following me from room to room to point out the obvious ("this is the kitchen...this is the den..." and so on).
If I do ask a question that I feel the agent should know the answer to, I hope I won't get that "I'll find out" line. A couple of weeks ago, I was holding a home open and a potential buyer asked a somewhat obscure question about the house. I was able to call the listing agent on the spot and get the answer. I wish I had thought to find out beforehand, but I sure was glad that selling agent was reachable!
I've tried sign-in sheets with varying results. One thing that encourages their use is filling in the first few lines with made-up information...sort of shows the visitor what to do.
Great post. I have to say I was nanny-camed by one client every time I did an open house for her :)
Jennifer I admit I haven't done open houses in years. But as I am working on my 2010 Business plan,I will have to consider doing more open houses next year. Stopped doing them because people you get are either your noisy neighbor,people who just brought a house and want to know if they over paid for their house or people who are not buyers but browers. Congratulations on the Gold Star. Enjoy the rest of your weekend. Great post.
Well a post should in effect cause dialogue about the topic, and this certainly has. I think the point is that it's not so black and white and what works for some doesn't work for others. We have a marketing plan that includes at least one open house and do many of the things you recommend. BUt there are people really successful at open houses that do it completely differently. I truly just feel that being yourself will attract those like minded people and those are the most enjoyable to work with, so if you are going to have an open house, might as well work it and enjoy it.
Jennifer,
When I do an open house, I don't try to get everyone's contact information. I find the chosen few that I really connect with.
Jennifer~
Great post. I will definitely give your no sign in sheet a try. I too believe that you should build up a rapport with the open house visitors.
~Pam
When you have a listing that's hard to show (new baby, pets that need to be secured) I think open houses are a must. If it's too hard to show, some agents won't bother. I at least like to make it easier for those who might really have an interest in the house.
I do think that the reconnaisance on other agents is a great idea. See what they do well and adopt it. ;)
Hi Jennifer, I also do not push the sign-in sheet. I do ask if they want to sign-up for my monthly and quarterly neighborhood market reports and that can generate interest. I'd rather build on the connection with the potential buyers. Most do not feel comfortable signing-in and the ones that do, leave false information anyway. Great post Jennifer! :)
Jackie - that's what I figure - if "most" people are uncomfortable doing something, and I'm uncomfortable asking them to - well, then I'll just not do that!
Karen - What's inspiring to me is how poorly other agents handle their open houses! I went to one where there were no signs on the corners (the agent had run out before she got close to the house!), the OPEN HOUSE sign in the yard was placed where you couldn't see it from the corners and she'd left her brochures in the car ("oops - guess I better go get them!"). Although, I will say that some of the best open houses I've had were ones where I ran out of brochures!
Terrylynn - EXACTLY. You nailed it. Figure out what works for you and what is comfortable for you and do that. Don't let anyone (myself included) talk you out of your gut instinct!
My opinion of the sign in sheet is that you should have one but not make the attendees feel like it's required. I'm a buyer's agent so I don't often do open houses but when I do, the sign in sheet is there to give people the option of signing up for my newsletter.
Many new buyers - especially first timers - are more comfortable going to an open house than just calling up an agent and suddenly having the focus on themselves. Give them a chance and they'll come up with lots of questions. If you don't make them feel stupid you've won half the battle of building rapport and gaining trust. That's when I point them toward the sign in sheet.
I plan to do several open houses in the coming month, so I will certainly appreciate your post. I'll subscribe to your blog.
I love your blogs and do subsribe! You always an interesting perspective!
Hi Jennifer,
Wow! Great blog...certainly has generated conversation, and I'd like to put in my two cents, if I may...
First, I just want to say that doing open houses is not one my favourite jobs in the industry, but I do do them if the client wishes (presently, I work on a team and we all take our turns in conducting open houses for the clients).
Now, that being said, even though I dislike doing them, I take my responsiblities very seriously. I find out everything I can about the house so I have the answers to the questions...most people want to know the age of the furnace, the roof, and the windows, which typically isn't provided in the listing sheet unless they've just recently replaced :).
I also use a sign in sheet and I usually don't allow people in if they don't sign. Why? Because it is my job. I don't like it, but it is necessary to protect my sellers.
On the Real Estate Council of Ontario's Web site it specifically instructs consumers to ask (among other things) if the registered salesperson is going to ask for ID (http://www.reco.on.ca/ConsumerInfo.aspx?Section=OpenHouse).
At the very least I would like to say that I insist visitors sign in before allowing them enter my client's private home.
One time during an open house, a visitor got very irate because I wanted him to sign in. He left angrily and later when I was collecting my signs I found one of them on the ground, pulled apart.
I don't believe this was a coincidence that some random person just decided to destroy my sign, and I was glad I didn't let this guy through. He obviously had issues.
I definitely depends on the area. I think open houses in an urban are are a lot better because there's more pedestrian traffic, better WalkScores. In the suburbs, I usually will not hold an open house because I don't feel that it's safe. It's also good to have a lender there with you or another agent/partner.
I like doing open houses... and really like doing them with a "group". We get other agents to hold their homes open and try and pull in more people.... more signs, more balloons, more for them to see. But in order to really pick up buyers from this ... you have to be on top of the rest of the listings. It really works to have two agents at the house, and know all the vacant homes. That way one can take the buyers to show them some vacant houses... while the other agent works the open house. A team approach!
Hi Jennifer, I do a ton of opens and always for name, cell # and email for my database.
Jennifer- All great points. You are there to represent the seller and sell the house. Leads are a bonus not the task. Most agents are so transparent with their motivation. Keep up the soul.
I think you are dead on that you have to keep the seller as the primary reason. Your point of knowing the house seems so simple yet it is amazing that there seem to, imo, to be a lot of Realtors who fall into the category of your example of not having walked to the basement to see the furnace.
I host a lot of open houses for other Realtors. If I haven't previewed the house already, I always make a point of doing so a few days before the open house. I try to do this preview when the seller is home so they can give me the tour and point out the highlights.
This knowledge goes a long way in the secondary mission of the Open House - new buyers. If a prospective buyer walks in and the Realtor doesn't even know the details of the house he is sitting in, what kind of an impression will the buyers have of that Realtor?
I don't usually enjoy Open Houses.....Every now and then I've had a good one. Mostly curiosity seekers.
Patricia
I used to use a sign in sheet every time; but lately, over the past 3-4 months, I have had it out on the table or counter, but have not insisted on people signing in. I haven't decided whether I am going to continue in this way. In the past I built up my database with the sign in sheets, and just this week had a call from a lady who had come to one of my open houses 2.5 years ago. The reason she contacted me is because I had them on my mailing list, and she liked my newsletters. If I had not made them sign in, I never would have heard from her.
Occasionally an open house sells the property. Depending on the property - location, etc. - it's more likely than in other cases. By doing the open house myself, I don't believe in having other agents do them, I have actually had the opportunity to "sell" the house pointing out special features about the house when agents have brought clients by on a weekend afternoon during their showing schedule for that day.
If nothing else, it does help keep people in the market - people generally like to satisfy their curiosity, and you never know, it may spur someone to think about buying who hadn't been thinking about it before. I do use sign in sheets. This has been an important prospecting piece for me - depending on your market, maybe that's not the case.
Open Houses are still popular in my marketplace and I have to say that I can trace a good amount of business back to people I've met at open houses. Sure, I've had many Sundays where I've sat at a home and nobody showed up, but in almost 4 years I've also sold 3 homes directly because of the open house. That was worth it to me!
I've learned to be very selective about when & where I hold an open house. I'm in the Chicago suburbs, so weather is always a concern. I've learned the hard way that people generally don't visit Opens during December and January. Or when the Bears are playing in the afternoon (though after last night it just might not matter anymore!). I like Open Houses and they are definitely a big part of my business model
Great post Jennifer... I have definitely been to a few open houses with agents to be the onsite lender. I can say there is an extreme difference from one agent to the next on their preperation for an open house. Sometimes the extreme lack of effort really puts the thought out there Why do it? If you are not going to take the time to do it right why do it? The two balloons on the mailbox just enough to have potential buyers feel the urge to stop in. Unless you have more balloons for their kids. I think open houses are a great way for buyers and sellers to meet agents. In a way they can interview them without them knowing they are being interviewed.
You know me...I hate asking for sign in information. I get too many Mickey Mouses. I always try to establish rapport first, and if they seem interested in the house/neighborhood, I'll ask them if they want my neighborhood update.
I have found that in the 6.5 years that I have been in real estate - I have sold one house that was the actually home I held open. It was well worth it as I ended up getting a listing out of it as well and selling almost 3 million in volume! Opens aren't my favorite but it is a necessary service to provide to seller's that feel it is important. When business is slow and I'm not having as much luck meeting new prospects through my normal business practices I will pick an open or two a month.