Building Business From Open Houses

Dear Real Estate Webmasters,

After creating the Best Techniques to Gain Business from Expireds/ FSBOs post I decided that the next logical progression would be to focus on gaining business from Open Houses.

I truly believe in the spinning plate philosophy of real estate. Unfortunately, I forget who developed this theory, otherwise I would give him/her the credit they deserve, yet it's based on the idea of gaining business from a number of different activities. To be successful is like "spinning plates" because you must give time to each activity or plate in order for the business or act to work. FSBO/ Expired are definately one of these plates, yet Open Houses may be the easiest if done efficiently.

When I first began in real estate I started hosting open houses for other agents in an effort to gain business. I was extrememly unsuccessful because regardless of my energy and motivation I was doing it completely wrong.

Buyers, noisy neighbors, and who ever else walks into your open house will never give you any information unless you request it. This means that a smile and friendly service will lead to 4-5 hours of time wasted. Since open houses only account for 1% of where buyers come from we can assume that not only are you wasting your time, but also the time of your sellers.

Now, I want to clarify that I am not condemning the use of open houses. In fact, I feel they can be extremely beneficial to gaining business and marketing a home. It's all about how the open house is conducted.

My Open House Technique

Being Prepared: Having an open house that no buyers attend is the worst. So before everything elsel I advertise the home. This includes the local papers, internet exposure, the MLS, road signs, balloons, and letters to neighbors. Sometimes I offer neighbors a special invitiation to come for an hour before I open to the public. This works well for homes new to the market because noisy neighbors will not interfere with real potential buyers.

My preparation also includes making various handouts to be given to buyers that come and visit. A perfect example of one of these handouts is 5 Things Buyers Should Know About Summit, NJ Real Estate. I let each leave with a number of articles I have written. Each article is from my website and includes the url so that they can visit the site if they feel I can further educate them to the market.

I answer every question they may have about the home they are visiting and even offer to provide them with a list of every other open house in the area. I realize some agents may think I am giving other Realtors a chance to pick up these buyers, but I am not worried. I know that most of these buyers already have a list of open houses so my giving them a list is inconsequential. It does help them develop a level of comfort with you, however. They begin to realize that you are equipped to aid all of their real estate needs and are prepared ahead of time.

Lastly, I also have them sign in to my guest registration like most Realtors. The only difference is I include a section on my sign in sheet that allows these buyers to specify any real estate markets or price ranges they are interested in learning more about. This helps me understand what needs these buyers have and fullfill them accordingly. This is how all companies create demand and I am no different.

I do feel feel my approach to open houses has been successful, yet I am always looking to find better ways to tap into this business. I am interested in hearing any of the methods you find useful within your markets. If possible please include examples of dialogues or letters you use because we may all be able to benefit from one another.

I look forward to hearing what you find successful.

Sincerely,

Michael Pennisi

www.MichaelPennisi.com - The Key to your Dream Home

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