7 Open House Tips to Double Your Income
How Many Open Houses Should You Have and Open House Scripts
Open houses can be a top source of leads and business for new and experienced real estate agents. There are a number of ideas to drive more traffic to your open house and tips to get more leads. Pair some great open house ideas with a plan and you can double your open house income faster than you can imagine.
There is a age old debate asking if open houses still work. Although selling the listing at an open house is becoming rarer, the effectiveness of holding an open house to expose the home to a wider audience plus using it as a lead generation source are some top reasons to keep working open houses.
If you are a new real estate agent, you should be holding at least 1 open house a week. Even if you are experienced and you would like to increase your production, open houses can be key to drive more deals into your pipeline.
The problem is most agents do a poor job of marketing the open house and are ill-prepared for the open house.
Are Open Houses a Waste of Time?
Absolutely Not! They are one of the best things you can do in real estate to get clients and it can be one of the quickest ways to a deal.
Here is why you should be doing an open house every weekend.
Meet Buyers: Obviously, this is one of the main reasons to do an open house. Most buyers start their search online then take it to open houses before selecting a REALTOR®. Don’t miss this opportunity to put yourself in front of a future buyer who will be selecting an agent soon.
Meet Sellers: Some open houses I have hosted are mostly neighbors and future sellers who attend. They are coming to the open house to scope out the competition. That is why you should know the market inside and out as well as the house. They could be a few months (or years) away from selling but this is still a great opportunity to provide them with information on the market and start building a relationship with them.
Real Estate Conversations: We say that if you want to sell more homes, simply talk to more people in your day. At your open house, you should have a steady stream of people to talk to (if it is marketed properly). If you are a new real estate agent, open houses can be a great way to learn how to talk to buyers and sellers and increase your confidence.
Work: Look, if nobody shows up to your open house or you only have 1-2 groups, you can still spend the time working. Bring your computer and work while you are at the house. Or bring some blank cards to write handwritten notes.
Open houses should not be overlooked by anyone looking to scale their business up. It is basically a free opportunity for leads to come to you.
Plus, it is a face-to-face way to generate leads. Leads you meet in person are much more likely to convert. So, don’t be lazy! Open houses are one of the best things you can do.
If you think they are a waste of time, then you are either too busy with offers and clients to fit in the open house or your open house skills need sharpening.
How Many Open Houses Should You Have?
The number of open houses you should host as a real estate agent depends on the amount of production that you want to get from open houses.
Pro Tips: If you are trying to strategically line up open houses, do them in conjunction with a new listing or price reduction.
(*Note, this is not the number of open houses required to sell the listing)
If you have good open house skills, you can count on selling a home every 6-8 open houses* you host. This doesn’t mean that every 6 open houses you will automatically sell a house. It could be that it takes 12-16 open houses to meet a group that both buys and sells.
The important part of this math is you need to be skilled and working to help those at the open house. If you are just sitting at the kitchen table and not interacting with the guests, you could need to do many more open houses to lead to a sale. Also, if you don’t market your open houses well,the number of open houses required to sell a home will go up dramatically.
Ways To Double Your Open House Income
Double Your Price Point: If you are having some success with open houses and you want to double your income, simply double the price point of the open houses that you are hosting. As you change your price point, you will also be dealing in a different market, so you need to research the heck out of your new market to be set up to provide the most amount of help to buyers at that price point.
Double Your Time at Open Houses: It’s like our other training. If you want to increase your production: just talk to more people. Chances are the longer you are at the open house, the more conversations you will have. It’s not linear (for example if you have 5 groups in 2 hours, you may not have 10 groups in 4 hours), but your conversations will still increase.
Double The Number of Open Houses: Are you doing 1 open house per week? Double it to 2. If you are doing 2, see if you can do 3 or 4 (2x per day). I love this technique because it improves the chances of me talking to most people. This will require more work as you want to know all the properties that you are sitting and know the market, but it can be the best way to drive more income from open houses.
Know The Market: Over half the visitors could be future sellers and neighbors. Yes, they are interested in the house, but they are much more interested in the market. Open house agents usually study the property well but they gloss over the market conditions and comparables. Bring detailed info on what is happening in the market. Pro Tip: Only bring one copy of the market stats and comparables so you can offer to email it to them following the open house.
Door Knock the Night Before: Putting an open house on the MLS and hoping people will show up is not doing your best to market the property for a successful open house. If you are serious about increasing your income, you should door knock 50-100 homes in the area the night before and invite them to the open house. No need for a complex script, just have a small postcard with an invitation. (See Personal Examples below, created free using Canva)
Talk to People: Actually, have real conversations at the open house. Don’t just sit there. Interact with your guest and ask them questions about the house and what stage they are at. Some of my favorite icebreakers are: How did you find out about the open house, driving by or MLS? (Let’s me know if they are neighbors or buyers searching) What stage are you at in the home search? (Let’s me know if they are just browsing or potentially near buying) What did you like/not like about this house? (Just gets them talking)
Close Them: One of my favorite open house lines comes from real estate trainer Jared James. His line is asking the buyer if “there is anyone sending them great deals on the market”. This is a powerful question because it is less intrusive than the classic “are you working with an agent”. It also uses pattern interrupt where even if they are working with an agent, it will give them pause to consider if their agent is doing everything they can for them.
Open houses can be a top source of business for real estate agents. Don’t miss this great way to start generating leads quickly.
If you are not getting the sales that you want from your open houses, then it is time to look at ways that you can double your income from open houses. Consider doubling your price point, time, and the number of open houses you host. Focus on buyers and sellers. Door knock the neighborhood the night before. Talk to the guests and be ready to close!
[00:00:00] Hello and welcome to Rev Real Estate School. The show with quick tips and actionable advice to help you sell more real estate in today's world. And now your host Michael Montgomery.
[00:00:11] Welcome to another episode of Rev Real Estate School. My name is Michael Montgomery. Do you want to double your income from open houses today? We are going to learn how you can do just that.
[00:00:26] Now first off there's this age old debate of do open houses still work. Let's clear the air pretty quickly here. Yes they definitely do still work. If you are not having success with your open houses that's fine that just means that there is some room for improvement in how you're executing driving people to the open house and then how you're interacting at the open house and following up.
[00:00:52] In this episode we are going to talk about how you can in fact double your income from open houses. What is the main point of the open house. Yes you are getting more eyes on the property and helping sell the property but it's also there to help you pick up buyers. We all know this. And oftentimes buyers will start by looking at open houses before they're going out there and contacting realtors. So this can be an awesome spot to pick up buyers. I don't have to go into too much detail about that.
[00:01:22] Picking up sellers is another huge element of open houses that oftentimes is overlooked. I've had open houses where everyone that came was either a future seller or a neighbor. So if I was not prepared for that open house with say market statistics and comparables for the area and pricing trends then I would have not looked that good at the open house. So keep that in mind when you are preparing for your open houses that you are also trying to appeal to sellers neighbors and others that you can then put into your database.
[00:01:57] Another thing is if you are a new agent this is a spot where you can start having conversations about real estate. The more conversations you have about real estate the better you will do in real estate. Also it will help increase your confidence because you are having more of these so you're getting more comfortable with a conversation about somebody coming up to you and saying Well how's the market. Well what that one down the street go for it. You're just becoming more comfortable within your career. There are amazing four new agents for that reason. And now let's say that you had the open house but zero people came. Well if nothing else you can bring your computer and you can get some work done. So do open houses still work. They definitely do. Are they worth your time. One hundred percent. You can get buyers you can get sellers. You can have conversations with neighbors and increase your confidence about real estate. And if nothing else you can get some work done. Now let's jump into some numbers.
[00:02:54] Six to eight open houses will typically lead to a closed transaction. Now you have to be marketing your properties in the right way and you have to be doing your open houses well. You have to know your market. You have to know your area. You have to know your comparables. But if you do you can get a transaction out of six to eight open houses. The other thing is you're not just going to do six open houses and then boom you're going to get a sale. You may do 12 open houses and then get a buyer that is also going to sell through you. So that's just the math of it. And if you want to double your income through open houses here's how to do it.
[00:03:35] The first one is you can just double the price point of the homes that you are doing. So if you're doing homes that are three hundred thousand then start setting open houses that are six hundred thousand. Naturally if that price goes up then so does your commission. So if you want to increase the amount that you are making from open houses is set open houses that are at double the cost. Now when you're doing open houses that are a different price point then you still have to know that price point very well. And if it's in a different community then you're familiar with. You need to know that community next if you want to double your income double the time that you spend at the open house. So the longer that you're going to spend it that open house the higher likelihood that more people will come through the higher likelihood that you will double your income the next one is double how many open houses that you do. So if you're used to doing one a weekend do two if you're used to doing two a weekend see if you can do for or if you can do three you can do one in the morning on a Saturday and then one in the afternoon and same thing on a Sunday. So if you want to get good at open houses and you do want to get income from open houses you can do these things. You can double your price point double the time you spend at the open house. Double the number of open houses that you do. And then there's a few other things that you can do. Number one and we've already alluded to this is know your market with sellers coming through and neighbors coming through. They are interested in the home because they want to know pricing because they want to know the market. They want to know what their place is worth. If they're a seller or a neighbor they have less of a concern about this property and the features of the property what they're concerned about is what their property is worth. So know the market. Another strategy is doorknock the neighborhood the night before drew up some postcard invites go doorknocked 50 homes in the area and invite them to the open house. Simply bring them. It's similar to our doorknocking strategy actually you just doorknock and you hand them the postcard and say you're invited to an open house. I'd love to see you tomorrow. We're listed just down the street for X amount.
[00:05:54] A pro tip here is you can have a neighborhood open house that the home is open for a period of time before it's actually open to the public so you can do a neighbors open house between say twelve and twelve thirty and then at twelve thirty the open house begins. This can be a great way to drive a lot of neighbors to the property and they'll come because they will probably cross paths with other neighbors that they know. The other strategy during the open house. Talk to people and this one seems pretty obvious but oftentimes we can just get caught in letting people look around and then not engaging in a conversation and wondering where they're at and what stage they're at. Start conversations with the people that are coming through the open house. No not every single person that comes through is going to want to chitchat and that's fine. You have to meet everybody where they are at in the process.
[00:06:53] If somebody is coming through though have a conversation with them especially if they're engaging in a conversation with you and then focus on them. So if you have lots of people coming into the open house and you're having a conversation with somebody focus on that one person that you're talking to that one person can turn into the appointment or turn into the closed transaction or two or three or four. This is very similar to the tips that we give on networking when you are having a conversation with somebody focus only on that person is tempting to look around and let your eyes roam and say hi to the next person that's coming through and saying hi is one thing but actually stopping the conversation to engage in another conversation. It could end up biting you down the road because that conversation that you're having is important and they could lead to a transaction moving right along.
[00:07:42] This comes from Jared James the real estate trainer. He says don't ask them if they are working with an agent because it's just too easy for them to say no. His recommendation is this ask Is there anyone sending you good deals that are currently on the market. It's just a different way of framing the same question but it sparks a little bit more of an interest in them because now they're thinking OK there is maybe I am working with a realtor but are they sending you good deals. They start to question that. So this is a really genius way and actually a low risk way of asking. Are you currently working with a realtor. Because the answer to that is so easy for them to say yes. I'm currently working with a realtor. When you ask Is there anyone sending you good deals that are currently on the market or coming onto the market then it stops them and they have to think about that answer. And even if they are working with a realtor they might think about it and wonder or they might just say no in which case they're not working with a realtor. And then you can engage them in a further conversation about what it is that they are looking for.
[00:08:47] So if you are doing open houses use some of these tactics in order to double your income through open houses. If you are not doing open houses or you don't think that they work then definitely implement some of these strategies so that you are ready to go and you are ready to start making money through open houses. Thank you very much for listening to this episode.
[00:09:07] And we will catch you in the next lesson this episode of Rev Real Estate School is come to a close. Thank you for tuning in. We'll see you back here for the next lesson.
Follow Up Reading:
Do you sit open houses in your real estate business? Do you have any favorite tricks?