Traditional open houses vs. virtual tours

In today's tech-savvy world, marketing homes takes multiple approaches
By AMY STUMPFL
For Brentwood Home Page
The open house has long been a staple in the sales repertoire of most real estate professionals. But with so many online resources available, sellers may be wondering if the traditional open house is still a viable marketing tool.

Opinions vary widely – some Realtors remain devoted to the concept, while others insist that it’s outdated and ineffective. And while the open house isn’t likely to disappear altogether, most pros agree that a more tech-savvy approach is needed to increase your listing’s exposure to potential buyers.

“According to the National Association of Realtors, 89 percent of homebuyers start their search on the internet,” says Brian Copeland, a realtor with Village Real Estate in Nashville, perhaps best known as a featured agent on The Learning Channel’s Flip That House, as well as HGTV’s House Hunters, Goodbuy/Badbuy and The Top 25 House Hunting Tips.

“What people need to understand is that the first showing is no longer taking place in the home – it’s online,” he says. “And it’s a real numbers game. It may take 1,000 web hits to get one showing. Open houses definitely can bring people through the door, but how qualified or motivated are they? I would rather get three high-quality showings from my online efforts than 100 people at an open house.”

Jane Alger, of Crye-Leike in Brentwood, agrees that the open house does not generally lead to a direct sale. However, she insists that the more people who see the home, the better.

“I think the open house is still very viable,” she says. “It generates a lot of traffic, and exposes the home to a lot of people. It may not lead to the sale of that particular home, but it introduces buyers to the area.”

It’s no secret that an open house provides great exposure for agents. In fact, it’s a common way to meet potential buyers and sellers who may not be represented. But many open houses also attract neighbors or other buyers looking to check out the competition.

“I’m always up front with sellers that an open house is probably not going to be the medium to get the sale,” says Marla Richardson, a Realtor with Realty Trust in Brentwood. “But it gets traffic in, and my job is to get as many people in to see that home as possible. Sellers are sometimes concerned that we’ll have a bunch of ‘nosy’ neighbors, but I remind them that those neighbors may have a friend or relative looking for a house. Word of mouth is still important.”

While a public open house may not drive sales, broker tours – in which Realtors open up their listings to fellow real estate professionals – can be extremely effective.

“Crye Leike has a tour every Tuesday,” Alger says. “It’s a great way to showcase a home and generate excitement about a new listing. There’s no substitute for getting other agents into a home to see it with their own eyes.”

Of course, the same can be said of buyers. But what virtual tours and online marketing tools offer is a way to target truly motivated buyers.

“The open house is not necessarily going away, but the way agents market the open house has certainly changed,” says Travis Robertson, a Franklin-based business strategist and author of The Millennial Revolution: How to Prepare Your Business for a New Generation. “A virtual tour can narrow the field, so you’re not wasting time with people who aren’t really ready to buy. It also allows the buyer to preview properties, so they aren’t wasting time looking at homes that don’t really meet their needs.”

Whichever side you take in the open house debate, it’s clear that online tools should make up a significant part of the broker’s overall marketing strategy.

“Many sellers choose an agent based on their blogs,” Copeland says. “They also expect agents to have a presence on social media, such as Facebook or Twitter. But the biggest thing is to get your product out in front of those who are actively looking online. Put together a video or virtual tour using quality photos, and then post it on sites such as Zillow and Trulia – there are tons of real estate sites out there. The marketing world has changed, and tech-savvy agents will be the ones driving the business.” 

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