During the pandemic, I wondered if open houses would one day return to the center of marketing and prospecting that had long been in the industry. Well, no wonder anymore. Open houses are back.
I recently devoted a Sunday afternoon to visiting several open houses in my neighborhood. I often do these secret shopping activities to talk with agents, experience the sales process at the highest level, and keep in touch with the local market. However, this was the first open secret shopping I’ve done since pre-pandemic times, and let’s just say the world has changed.
Inventory, inflation and interest rates dominate the headlines. Multiple offers are the norm, buyer frustration causes heartache. Although we have witnessed the volume of history industry transactions nationwide, it has been almost a few years, and agents are weary. Not to mention the impending dark cloud of a market downturn around the corner. So what time to take a breath, regroup, and re-energize?
I visited four open houses in the afternoon when I did my secret shopping. Each had open house signage, at least at the end of the driveway, if not in multiple places, to direct visitors to the property. But unfortunately, that’s about the only box I can check in the “how to do an open house” checklist effectively.
The rest of my experience was quite frankly shocking.
- Not a single agent had a login paper or registration information.
- I didn’t get a single listing sheet or info about the house.
- I was not asked for my name or any type of qualifying question.
- I have been given the freedom to explore homes with many other people at the same time. There was no supervision by the agent.
- I didn’t get a single business card or even a hint to follow through.
I get it. The market is crazy full, and we know that almost any new listing has a high potential to sell out in a few days. I’ve even had agents tell me that they don’t want to talk to buyers right now because it takes a lot of work and the bidding process is very competitive.
I have two big problems with this mindset.
You have a duty to the seller to protect his house during the open house. These agents should have been more careful and diligent. If a problem occurs during the event, agents will not be able to share who visited the property that afternoon.
As an agent, you are missing out on a great opportunity to build your sphere of influence. Your database is the lifeblood of your business. This market won’t last forever, and when it changes, you’ll wish you had the chance to meet dozens of potential buyers on a Sunday afternoon. Many of these buyers will not buy today but will at some point in the future. Many of these buyers are sellers, too. Is this how they want to open a house in their own home? Did I mention losing referral opportunities? Oh yeah, there are those too.
Smaller times are coming. Now is the time to start making changes to future-proof your business.
- Don’t take shortcuts. Do your job. Get ready and play the long game. You will thank yourself later. Invest in relationships and consistently build your highest return (commission income).
- Think about your costs. Check every expense you’ve made in the past two years. What made a comeback? What needs adjusting as we move to a different market?
Fathom Realty has helped thousands of agents increase their sales and reduce expenses. Our #1 agent brand philosophy, the technology and marketing tools you need to grow your business, and training and support to thrive in every market has become a proven combination. Are you planning your next class? Learn more about Fathom.
About Wendy Forsthe
Wendy is Chief Strategy Officer at Fathom Holdings Inc. (Nasdaq: FTHM), a technology-based national real estate services platform that integrates residential brokerage, mortgage, property, insurance and SaaS offerings for brokers and agents by leveraging its own cloud-certified software, intelliAgent. Wendy has spent her career helping top brands, brokers, and agents build their businesses. It has become a leader in branding and growth by combining operational excellence with an agent first philosophy. You can reach Wendy at [email protected].
