Realtors love holding open houses, although the idea might seem crazy to many people. Do open houses produce home sales?
It is true that open houses attract potential customers who probably missed other forms of advertising. But do these visitors actually turn into buyers? Statistics reveal that open houses are only marginally successful at getting the house sold. Still, realtors hold them. Why?
Realtors need connections
Realtors want to make great connections with potential clients. It is true that their chances of selling a home depend on their marketing ability, experience, and understanding of market conditions. But what if they have no connections? Who will they sell their services to?
People in the real estate business spend a lot of time on making connections with potential homebuyers. They send postcards, distribute flyers, organize local events, and get active on social media with the sole objective of making good connections with a potential buyer. Since an open house provides an opportunity to meet a potential client in person, it is perhaps the most effective of these strategies.
The people who visit your open house
For a realtor, the people who visit an open house are a set of potential buyers who also provide a great opportunity to make great connections.
Neighbors are unlikely to be interested in buying that particular home. But for a realtor people living near the listing could be their next listing source. These people may also know someone who is interesting in buying the property they are currently holding open.
At least some of these people are interested in finding out the value of their home. This allows the realtor to display their knowledge of the local market conditions and recent comparable sales in the area. From the way this conversation shapes up, the realtor can assume whether the neighbor is interested in selling their home. If so, they could be the realtor’s next listing client.
Looky-Loos are home shoppers who have no real intention of buying a home at the moment. Some of them just want to pass their time in the open house. However, it isn’t hard for a realtor to understand that the looky-loo’s motivation can change any time. If they find the right home, they may instantly turn into buyers.
While the realtor’s primary concern is to sell the house they are currently holding open, it is possible that many of the people who visit the open house are not interested in that particular property. In this case, if the realtor already has some other homes for sale in the neighborhood, they can take a disinterested client to a different home.
Potential buyers often tour the property with their friends or relatives. For a realtor, these interlopers are a great connection to make. When a young married couple buy their first home, it is not hard to see that many of their friends or colleagues are also at that point in their life. By making connections with friends and relatives of potential home buyers, realtors are making their way into a big circle of people who may become their future clients.
Realtors hold open houses on a public holiday or a weekend because they bring in potential customers who may be too busy to see the property during the week. For a seller, this improves the chances of getting their home sold.