Introduction to Open Houses
First of all, ask yourself, "Why should I hold an open house"? Is it to find a buyer for that particular house? Often, this is not the case. If you happen to find a buyer for the house you are holding open, you are very lucky. Most agents do open houses because it's a chance to pick up potential buyers who may end up buying another property from them. Conducting an open house, however, is more than a three-hour commitment. To maximize your chances of picking up new prospects, make preparations ahead of time.
Preparations
Before the Open House, considering the following:
- Prepare flyers on the featured property along with all the pertinent information. You should also have your contact information on this flyer.
- Put together a “Buyer’s Packet” with your information and the benefits of working with you. Include:
- Business Card
- Resume of Experience
- List of Active Listings in the same Price Range in the area. This gives more options to the Buyer prospect and can be used as a tool to talk to the Buyer. Create this by running an mls search in the area for active comparables, and select “One-Line Property Report.” Once the report has been generated, copy and paste the Report into a Word document that contains your picture and contact information.
- Take an Open House Registry to log in prospects' information. Include:
- Name, address, phone, email
- ALWAYS fill in the first 2 visitors (so the prospect doesn’t feel they are the first one).
- If people leave 2 of the columns blank, fill it in for them after they leave! Otherwise, the next people will probably leave it blank as well.
- Ensure you have an adequate supply of Open House signs that are in good condition. Put your name on all signs, including the little arrow signs. They all advertise your name and makes people familiar with your name in the market – name recognition.
- Place an ad in the local newspaper and list it on local open house websites.
- A couple of days before or on the day of the open house, mail or drop off postcards/flyers to the neighborhood announcing the open house.
- Do a little research and gather information on the local area surrounding the location of the open house. The type of information that's good to include: public and private schools, distance to parks, shopping, and freeway access.
- Make sure you have a complete set of the necessary forms to begin a purchase agreement or listing agreement...just in case someone wants to write an offer!
- You will usually be at your open house for 3-4 hours. Leave for your open house with plenty of time to drive around and place signs to direct traffic to the open house.
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Issues to Consider When Setting up the Ideal Open House
- Center of Town – Whenever possible, hold them at a property located at the center of town, so it is easy for people to see.
- Easy Access – Whenever possible, make sure the property is easy to get to.
- Good parking – Ideally, there should be good parking available (not on Main Street where there is no parking).
- New Property – Will bring out most number of buyers
- Price Reduction – Will be sent out as new in the MLS system because of the price reduction. Example: If the new price is $699,000, this will bring out buyers looking for under $700,000 that did not see the property before when it was listed at $760,000.
- Time of Open House
- Hold for 3 hours from 1-4 PM or 1:30 – 4:30 PM on Saturday or Sunday. Saturday is better.
Day of the Open House
Arrive early to set up your display of materials:
- Property Flyers
- Buyer’s Packet
- Open House Registry
- Have at your convenience and quick reference:
- Comparables on neighborhood sales
- A complete set of standard forms to begin a purchase contract
Set up the Home for the best presentation:
- Staging—make sure the home shows well
- Turn on lights or open drapes as needed
- Use room freshener to cover pet smells
- Place fresh flowers
- Make sure you look professional, and even wear a name badge or Realtor® pin to help identify yourself.
On-Site Etiquette
 Certain unofficial practices fall into the category of "open house etiquette." Here are suggestions that will make you very popular with the seller and potential buyers.
- If there are white or brand new carpets in the house, suggest that visitors remove their shoes before entering those rooms.
- Be watchful of visitors with food or drinks and have people leave those at the door.
- Do not allow visitors to bring pets through the open house.
- If there are expensive or fragile objects on display, place a "do not touch" sign or suggest the homeowners store those items away.
- Tour the house before leaving to inspect for damage, spills or trash that should be tidied up.
- Common sense and courtesy should guide your open house guests to treat the property respectfully, but sometimes people (including agents too) need reminders.
- Be sure to thank everyone who stops by, even the "lookie-loo" neighbors who may be your next referral or even listing.
Factors for Open House Success
- Where you stand – Stand where the Buyer will pass you by twice (not on the way out). Example of a good place - the kitchen.
- Greeting - Make Open House Guests feel comfortable with your greeting.
Choose one:
- “Hi, how are you? Feel free to roam.” (Build rapport).
- “Hi, how are you? Let me know if you have any questions.”
- “Hi, how are you? There’s a flyer on the table if you want one.”
- Appointments – Make appointments at the Open House whenever possible.
- Goal - Challenge yourself with an Objective for the Open House – Think Outcome!
- Build Rapport and Give Value - As the prospect leaves the property, making their way by you for the second time, try something like:
- “Listen, let me save you some time. Here is a list of all the properties in the area in this price range (Buyers packet). And here is something you can’t find on the Internet. (Show listing sheet). This shows you the original list date and list price. This information can help tell you how motivated the Seller is. If a property has been on the market a little longer, the seller may be more motivated.”
- You are having a conversation about real estate with someone who wants to buy real estate! Use the conversation and information to build rapport and trust. Give them Value and Information.
- Obtain Information - The Open House Registry
After giving them something of value (listings in the area with original list date and price), it should be much easier to say “Hey, you know it would be helpful if you fill out our Open House Registry. Take a look at the listings I gave you and if you see anything you like, I can show it to you in the next couple of days.”
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After the Open House
At the end of your open house, be sure to properly lock up the home, turn off any lights you may have turned on for the open house, and take all your supplies with you. Don't forget to pick up all your signs.
Open House Lead Follow-up
- Follow up - Call or visit within 24 hours of Open House with Information of Value (listings, the market, sales, etc). Bring Value and Information when you call.
- Phone Call Script - “Hi, we met yesterday at the open house. Listen, I was thinking about the homes you were looking for and I found a few I think you may like. I’d be happy to show them to you…” (OR if they are hesitant) “I’d be happy to send you the information and you can look it over and see what you think.”
- Thank You Note - Mail or drop off a Thank You card immediately.
FOLLOW-UP TIP: To save time, take pre-stamped postcards or letters, fill them out in between visitors, and mail them right after the open house is over to any contacts you met who provided an address.
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Sample Forms to Download
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