Are you too busy to hold open house and/or prospect? If so, the top agent from my old office in Brentwood, CA (120 agents) has a great reminder for you on the license plate of his Mercedes SL convertible

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In other words, success in the real estate business is based upon excellent execution of the fundamentals of the business. One of the "basics" is open house. Open houses can be a continuing source of new business or a total waste of time. The key in making open houses profitable is to change them from a "reactive open house" to a "proactive open house."

Most agents use what is jokingly known as the "3P approach" to open house--Put an ad in the paper, pound directional signs on the corners, and pray someone shows up.

Unfortunately, once the visitor arrives, some agents just say, "Look around and I'll answer any questions" and then continue with whatever they're doing, which is often watching television. This “reactive” approach seldom yields any leads. The most important thing you can do to change your open house from "reactive" to "proactive" is to prospect prior to the open house either by door knocking, warm calling, or cold calling. If you're interested in turning your open houses into proactive moneymakers, here are some important tips to follow.

1. Door knock: Invite a minimum of 20 neighbors (or potential neighbors from surrounding "move-up" areas) to the open house. A simple strategy for doing this is to print up a color brochure as well as having a formal invitation. Plan on hand delivering the invitations the Saturday morning before your open. Use the following script:

   Hello, my name is Sally Agent from ABC Realty. Mr. and Mrs. Jones, the sellers of the property at 123 Main Street, have asked me to invite you to our open house tomorrow from 1:00-4:00 PM. We'll be serving refreshments—will you be able to attend.

   Three important things to note about this script. First, my father was the consummate "slam the door in your face" homeowner. When I asked him about his response to this script, he said, "They're not trying to sell me anything—they just invited me over for refreshments. Why would I slam the door?"

   Second, notice there is no question mark at the end of this script. Instead of letting your voice go up at the end of the word "attend," use a "downstroke," that is, make your voice go lower. A good way to practice this is to say, "It's raining outside." This is the same tone of voice to use for the last sentence of the script—be sure deliver this as a statement rather than a question.

   Third, this is an ideal way to prospect for new listings. Potential sellers who see you handing out invitations and flyers door-to-door, are much more likely to hire you to represent their home. One new agent who was so scared she could hardly say the script, landed a $2 million dollar listing by saying, "Could you please come to our open house?" and giving the woman answering the door the invitation and the color brochure.

2. Warm call. Contact past clients, friends, and acquaintances to let them know you're holding an open house with refreshments and you would enjoy seeing them if they just happen to be in the neighborhood. This sends a message, of course, that you're working hard as well as being interested in keeping in contact with them. It also keeps you in regular contact with your sphere of influence.
3. Cold call. You can use the same script outlined above for door knocking. Invite neighbors in the surrounding area or call into those neighborhoods that are priced about 20% less than your listing. (These are "move-up" neighborhoods). Danielle Kennedy, who has over 25 years experience as a trainer and Realtor, suggests that you actually call neighbors during the open house. Rather than passively waiting for people to show up, use this time as prospecting time. (Please note many states do not allow telemarketing calls on Sunday. Be sure to check with your broker about what is legal in your area. Also, be sure to get the Seller's permission to use their phone.)
4. Meet the neighbors. Instead of putting an open house directional sign on someone's corner without permission, why not ask them if you can "use" their corner? Also, a handwritten thank you note confirms you cared enough to be considerate.
5. Be ready for business. Remember, any time you prospect or sit open house, you must be prepared to "ask for the order." In other words, you must be completely prepared to go on a buyer showing, write up an offer, or take a listing. Make sure you have everything you need to conduct business in your brief case or in the trunk of your car.

Published: May 15, 2001

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Bernice L. Ross, Ph.D. operates RealEstateCoach.com, with her husband and co-trainer, Bryon Van Arsdale. A Professor of Psychology at Los Angeles Pierce College, Bernice also is a faculty member at Coach University and holds the designation of Master Certified Coach. She served as Executive Director of Training from 1993-1997 for Prudential Jon Douglas Company, and also pioneered the first real estate/coaching teleclasses for Continuing Education credit in California. E-mail Bernice at bernice@realestatecoach.com.