The open house is one of the most misunderstood tools in our REALTOR toolkit. Sellers think it's the most important thing we do, agents mostly think it's a waste of time. Both are equally wrong.
A well-planned and executed open house can be an amazingly useful part of your marketing effort. Here are some things that will get you on the right track:
1. Choose houses in high traffic areas I have seen open houses conducted in out-of-the way neighborhoods and way out in the country. Understand that your chances of a successful open house are not high in such places. If possible, select a home that is only two or three turns off a busy road or street.
2. Prepare your seller - it's important that your seller understand why you are holding the open house and what to expect from it. For example, most sellers do not want their neighbors coming through. They also think that the house is likely to sell directly from an open house. And that it truly matters how many people come through.
We know that neighbors are a key target for our open house. (They may be prospective sellers for the agent, that's true. But they may also be folks renting in the neighborhood or who know of someone they'd like to have as neighbors!) We know the chances of selling directly from the open house are slim, but that with proper marketing, we can attract agents and buyers who may know someone who is interested. And we know that it is the quality of the prospective buyer, not the quantity. See the Seller Open House Prep dialogue here.
3. Advertise, advertise, advertise! Time was when the best place to advertise an open house was the Washington Post and the Gazette. Now, we know that online sources like Craigslist, MRIS, Facebook, Instagram and others are much more effective. And signs are still the number one way to bring buyers into the open house.
If you've never used Craigslist, check the Resource Page for information on how to create a Craigslist ad.
4. Invite the neighbors! Nosy neighbors are not something to be dreaded. In fact, I recommend a special "Neighbor Preview" an hour before the public is invited. This does two things: allows the neighbors to come to the house without feeling awkward (and gives you a reason to contact the neighbors); and makes you stand out in the minds of potential sellers in the area. Serve refreshments – punch and cookies are plenty, be available to answer questions one on one, and make sure to have some of your marketing material and plenty of business cards available.
There are any number of ways to invite the neighbors - mailing a postcard is certainly the easiest and most cost-effective. But it's probably even more effective to walk through the neighborhood and invite 60 or so neighbors in person. Knock on doors, and if they aren't home, leave the invitation/flyer you have prepared. It's probably not a bad idea to team up with another agent and walk neighborhoods together - safety first!
5. Set the stage! It's important to have the home look it's absolute best. That goes without saying. But the seller has to understand that this is literally showtime! If you - or they - have to spend some time and even some money on fresh flowers, fruit bowls, refreshments, etc. That's money well spent. I'm assuming the house is already staged, right?
5. Give them a reason to give you their contact information - First of all, the best reason I've seen yet for a tablet computer is Open Home Pro or similar programs that ask for the prospective buyer to sign in on the iPad or other device. It's funny, but people don't mind doing that. If you don't have an iPad - or even in you do - have a drawing for anyone who signs in and answers a brief questionnaire. (questions like name? email address? what features did you like best about the house? Is this is your price range? How long have you been looking? Are you working with an agent?)
A pair of movie tickets or a $25 gift card is more than enough for the drawing. If you can swing it, provide two prizes: one for the neighbors and one for the general public. Make sure you put the following information on the entry form: Must be 18 to enter, no purchase necessary, do not need to be present to win but must provide valid email address and phone number to be notified.
6. Follow up Amazing that most agents simply don't follow up with prospective buyers. And if they do, they only follow up once. If they have given you a physical address, send them a personal note. If not, a brief email is acceptable. Then, follow up in a few more days asking if they had any questions, notifying them of a price change, anything they might need to know.
If you follow these steps, you will find much greater success and satisfaction from your open house experience. Oh, and you'll make more money, too