IS YOUR AGENT USING THE BEST TOOLS TO SELL YOUR HOUSE?
Selling a house today is very different than it was even just a handful of years ago. Is that iconic Open House —a Powerful Marketing Tool or Outdated Dino of the past?
Ever since I started in real estate in the 1980's Brokerages have been encouraging real estate agents to hold Open Houses, and while they did have a place and serve as very useful and effective for Sellers, Buyers and Agents at that time, they also had the less obvious but possibly greatest benefit to the Brokerage. An Open House costs the Brokerage little or more often nothing at all and yet it provides them with great name recognition and marketing — all those Pretty Open House signs, Balloons, etc. all adding to the recognition and branding of the Brokerage (For Free).
The Real Estate Agent - Realtor
There is great potential benefit (financial) to the realtor holding the open house. It affords them the opportunity to find new buyer and home seller clients and even the possibility, although remote, of selling the house during the Open.
Recently we conducted an informal poll of 40 successful real estate agents in various metropolitan areas across the U.S. We polled 20 agents that do hold Open Houses and 20 that do not and asked them "Do Open Houses sell homes?" Not surprisingly most of the agents that hold Open Houses (18 out of 20) said "Yes, they do," and all of the agents that don't hold Opens said, "No, they don't." Statistically, according to the NAR (National Association of Realtors) only 1-3% of homes are sold each year as the direct result of an Open House. Not exactly a POWERHOUSE marketing result is it?
I further asked the agents that do hold Open Houses if they were prohibited from prospecting for new clients during an Open House or from "Double Dipping," a phrase commonly heard within the real estate profession. It results when the Listing Agent also finds and writes the contract for the home buyer — allowing the listing agent to receive a double commission: One for the Listing side and one for the Buying side i.e. "Double Dipping". Would they still hold Open Houses? This time 19 out of the 20 said they would NOT hold an Open House if they could neither prospect for clients nor "double dip". So this seems to show the REAL motivator for agents holding homes Open: prospecting for new clients for the agent; it’s why you see sign-in sheets at open houses and why agents are always so eager to talk to the visitors about what they’re looking for. If you’re a home seller, you should know that the agent on hand is likely more interested in selling themselves than in selling your home...
The Home Seller
If you are interviewing a Realtor to sell your home, and you find that one of the cornerstones for their marketing of your house will be to hold Open Houses, you may want to find an agent that has a more comprehensive and effective marketing plan. One that focuses on getting results for YOU not more clients for them.
Ready to sell your house? We would love to have the opportunity to help you and your family to reach your goals, and we will be happy to show your our marketing plan that is focused on Selling your house, not focused on acquiring new clients for us.
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