Open house is the ultimate form of prospecting, and most agents don't even know it. It's like shopping online: there's no need to traipse from one store to the next because they come to you. It's true that an open house is a form of marketing since clients come to you but the interaction is all one on one, so you are truly prospecting. It can be reasoned that an open house is a hybrid or marriage of both prospecting and marketing. An open house is so lucrative it's a wonder that some agents question its value.
As we travel the country and speak to agents, we get the question, “Do you hold open houses?” It seems to come with the implied question, “Which side are you on?” as if there were two warring camps, for and against open houses. You need to understand both points of view so that you may guide your seller to a successful sale.
At listings we have had potential sellers ask about open house. More often than not they want to make sure we will open their home. But occasionally they ask because the previous agent (yes, some sellers interview more than one agent) sold them on the idea that open houses are a waste of time. You may have had this same experience or you may even be one of those agents promoting this point of view.
As we understand it the explanation goes something like this. Open houses are a bad idea. Statistics show there is a better chance of snow in July than having a contract written at an open house. The only people who come are nosy neighbors. ...