Why Open Houses are Absolutely Necessary in the Luxury MarketNov 29, 2022
Converting luxury listing leads in a regular Real Estate market is already competitive, but in a market with low inventory, it is even more important to stand out from other Realtors in order to get the listing.
Listing agents are now having to go over and above for their clients and add even more value or a “concierge” level of service to their sellers. With buyers and discounted brokerages becoming more and more prominent in our marketplace, in order to warrant a full listing commission, listing agents have to show why the seller should pay them top dollar to sell their home.
One thing that adds value is not only being able to get a higher price for their home but being able to deliver the offer that fits their needs as a seller. In order to do this, the home needs to be exposed to ALL potential buyers, not just buyers with agents. Over half of buyers are not hiring an agent until they find a house to buy, and over half of the buyers today have a house to sell. This is why consumer direct coming soon marketing platforms and open houses have become absolutely necessary.
Advertising and promoting a listing directly to consumers and having a pre-market open house is a great way to get early market feedback prior to the home accumulating days on market. As everyone knows, days on market determine who has the advantage when making an offer. With zero days on market, the seller obviously has the advantage, whereas weeks on the market shift the advantage to the buyer.
A pre-market preview open house is also a great way for an agent to see what response the house gets based on the price it is listed at. This early market feedback can help an agent know if the home is priced too high or too low prior to the DOM to start accumulating. There is a lot of valuable feedback that both buyers and Realtors can give a listing agent before a home goes active that can truly help the listing agent get the highest price for their seller... and the offer that is perfect for their needs as well.
But how do we convince our luxury sellers to have a coming soon open house or an open house the day the home goes active?
With new companies like Open Houses Direct, Realtors can run an open house no different than a "day of showings." With Open Houses Direct's check-in system that verifies every open house guest with a name and a phone number, there is no reason that Realtors shouldn't register and verify every single person who attends their open house. This "concierge" way of showing consideration for the belongings in the home as well as the home itself, not only helps an agent stand out from other Realtors, but it is a great way for them to allow you to open the home up to the public.
With open houses today having anywhere from 25-50 visitors, it is also a great way to capture potential client information as well. It is incredible how many luxury agents will still hold an open house for a luxury listing, or any listing in any price point, using an old-fashioned sign-in sheet of paper to check-in open house guests, or as one agent told me, “only register clients who may want to work with him”.
With over half of open house visitors who attend open houses today also having a house to sell, open houses, whether active or coming soon, are an incredible way of also generating both buyer and seller leads. Also, many Realtors who don't have an open house on a new listing, whether pre-market or active, miss out on the opportunity to meet the neighbors as well who may want to sell their home, leaving potential seller leads and thousands of dollars in commission on the table. Open houses in a market with low inventory do sell homes, and if they are run the right way, they not only make the listing agent stand out, but they can generate an incredible number of leads.
If you'd like to learn our successful strategies for creating, marketing, and running your open houses, please check out https://www.openhousemasters.com/coaching. Our selective, hands-on program guarantee results!