HOW TO MAKE AN OPEN HOUSE SUCCESSFUL

For many people, running an open house is an good 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 having open houses.

Everyone agrees that open houses can only be helpful for a brief period of time. In most cases, an agent will have not more than two open houses per house. This might lead to prospective buyers drawing conclusions as to why it has not sold. 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 your selling strategy.

Sometimes 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 for Realtors. If it is not well organized, it is usually a complete waste of time for everyone involved.

Many real estate agents talk 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.

A 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 for the buyers to stop looking. This is not helpful in getting the house sold.

A proactive approach is 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 the home may have. At this point, you have a wide open door to answer questions and "show" the house to the interested parties and you have broken the ice.

Pros

Many agents feel strongly that open houses are a tradition and sellers expect it as part of the deal, another form of advertising. Open houses in big cities or suburban communities have become a part of Saturday or Sunday afternoons. Often people will go to open houses whether buying a home or not. Even if someone comes through not interested in the house, this is yet another media for advertising. For example, a couple is visiting open houses as something to do on a Saturday afternoon. They walk into one particular house and immediately think of a family member looking for a house. Each time a house is shown, one more person is aware of its existence.

One advantage of an open house is that it keeps sellers alert, meaning that they know their home has to be in order (clean, maintained) since a buyer could walk through in an hour's notice.

Another positive aspect of open houses is that they provide good feedback. This is a great way to learn information from potential buyers about comparisons for other homes and pricing.

Cons

Some agents and brokers view open houses as a waste of time for sellers and buyers alike. The concerns are that many people who come to open houses are first-time buyers, meaning they may not even have the proper credentials for going to an open house and making an offer. They are usually strapped for cash and struggle with down payments and closing costs.
Another down side is that because not everyone visiting open houses are in the buying market, you end up with neighbors who have never been inside your home being curious or sellers checking out the competition. However, remember, it only takes one person - the right person.

Offering an open house is a decision that needs to be agreed on between you and the seller. When weighing out all the odds, open houses still offer a great networking system, security to the buyer, and excellent visibility.

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Mark Linder
New Century Realty Group
Phone: (469)879-2960
Mark@MarkJLinder.com