One of the most popular methods of getting some literal foot traffic into a home is by offering a open house. It gives people an open invitation to browse the property. It gives them a chance to try things out before they decide to make a commitment, but do open houses really work, or do they just create more work for the real estate agent and the homeowner?
What would be considered a good conversion rate for an open house? An excellent conversion rate would be upwards of 50%, but open house conversions don’t quite stand up to those numbers. If you are planning an open house, then this article is not meant to burst your bubble, but less than two percent of all open houses convert into a sale that was a direct result of the open house. That is not a very good conversion.
What is the problem?
A lot of people that come to open houses never have any intentions of buying the property. An open house can be a great way to socialize and take advantage of free food and drinks. You may not think that people do this, but they do.
There are plenty of other reasons that open houses never convert. There could be poor communication between the real estate agent and the interested home buyers. People don’t always buy something the very first time that they see it. It may take weeks or months of follow ups to convince them that a purchase is the right choice. Is the real estate agent following up with all of the prospects? It can be difficult to follow up with everyone that attended the open house, but if the real estate agent knows what they are doing, then they should not have any problems following up.
Following up is also much more than a simple phone call, email or thank you. Over 40% of all real estate agents never follow up at all. That is why open houses are not converting as well as they should be. The other 60% will follow up with a simple thank you phone call or email. That is great, and the prospective home buyers will appreciate that, but it is not enough to convert them into a sale. This is where almost 100% of all real estate agents stop, but they need to continue with those follow ups in order to convert a curious home buyer into a sign on the dotted line home buyer.