Building an open house is tedious and time consuming. They aren’t always the most successful way to find a buyer for your client. Knowing this, what’s the point in throwing an open house for the seller?
There’s a good reason why we organize open houses, and it has to do with rousing returns on your sales. Stay up to date with the latest videos by subscribing here.
Do Open Houses Help Sell A Home?
When you’re getting your CA real estate license, you might learn a thing or two about Open Houses. The Open House is when you showcase your client’s home to the public like it’s a fine exhibit in an exquisite art gala. You have prospective buyers perusing the house and inspecting its features to gauge whether the personality of home is the perfect fit.
It’s the first impression a buyer has with the property.
Organizing an Open House is no simple task. You have to clean, decorate, stage, promote, and – most importantly – pass out cookies to everyone who visits. All of this makes it a tedious and time consuming endeavor. That must mean they’re massively successful, right?
Open Houses have a very low success rate for finding a buyer. You may be wondering what point is there to host an open house, given the slim chance of finding a buyer. There’s a few excellent reasons why these promotional ideas still possess major value to the you and your client.
You Have a Slim Chance to Make a Sale with an Open House – How Slim?
According to the National Association of Realtors (NAR), only 7% of buyers found their home through an Open House. That’s pretty slim pickings for the agent. Open Houses help sell a home, but the likelihood of that happening is small.
When preparing one, you have to change your mindset to make the most out of the opportunity.
If you’re throwing an Open House for a home that’s worth $2,000,000, and your commission is 3%, then that’s a huge opportunity to earn $60,000 from a single transaction. The chances of this happening are unlikely, but not impossible. Even when 7% of buyers find their home through open houses, that’s still a slim chance of you landing a deal.
Not only that, but it’s an opportunity for you to increase your network with potential clients.
Why We Really Need Open Houses
When you host an Open House, you have a chance of finding the perfect buyer, but you can also use this as an opportunity to meet new, prospective clients. If a visitor doesn’t think the home is a good fit, you can suggest another property – one that would be a good fit. This is a great way to turn a substantial number of potential buyers into actual buyers.
If the house you’re showcasing doesn’t cut it, show them another house that will.
By doing so, you can increase your chance of finding the perfect buyer for your clients. Instead of being dependent on the outcome of making the sale at an Open House, go into it with the mission to spreading your network, so your clients find the dream buyer.
Putting Your Client First
Putting your clients first is the number one mission of a Real Estate Agent. Earning $60,000 is always a great feeling. However, getting as much money as you can from a deal shouldn’t be your objective as an agent. When you’re hosting an Open House, do it for your client.
Open Houses are a great ways to spice up the client’s house and show it off to the neighborhood.
You want everyone to see why you believe your client’s house is the best place to live on the block. Open Houses accomplish this and more. When you put the client first, they will see this and feel more likely to recommend you to their network.
People will notice if you’re only after the money, and, when they do, they won’t want make a deal.
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