Posted by Bill K. (AZ) on March 26, 2000 at 15:37:38:
Doe,
I haven’t had a lot of success with finding buyers via an open house. Nonetheless, I continue to hold them. However, I don’t hold them open personally. I work with a number of mortgage brokers who are only too happy to hold the home open for me, AND run the ad in the newspaper. Depending on the property, we’ve had as few as 2 people look at a property and as many as 22.
The mortgage broker will prequalify the prospect for me right on the spot which is something I’d have them do immediately after I signed a purchase agreement anyway. With this arrangement, I just switch the steps. They prequalify BEFORE I sign an agreement with them.
If you are concerned about receiving numerous calls all asking the same questions, then I would suggest you use voice mail. When a person calls, your message can direct them to the mailbox which describes the property in question. You never have to take the call, and your message will answer the most asked questions for you.
Since I have never tried to sell a property with the owner still living in the place, I can’t comment on your last question.
I was wondering if there are any REI sellers that have used an Open House to get buyers to look at their property for sale; instead of taking calls, giving them the specs, etc… etc… over the phone.
I work a full-time job & get home very very late. So, I would not have time to CALL EACH AND EVERY “potential buyer” that may be interested in a home I have under contract.
I did read the book “How to Sell Your Home in 5 Days” I was wondering if any of you all had positive results in getting buyers this way.
What are some of the requirements do buyers need to have if they want to sign an agreement at an Open House?
Has anyone had an Open House with a owner occupant still living inside. If so, what did you work out with them so they would cooperate in letting a whole bunch of strangers wandering around their home.
The way I market my houses is simple. I put a “for sale sign” up in front of the house as soon as I own it. I field phone calls from interested buyers during the rehab process, but I don’t show the house until its finished. (If I have a finished house nearby that is un-sold, I try to get the prospect to drive by that one. Maybe I can slide them into that one.) When the repairs are done, I call each of the folks who called about my house and invite them to an open house. (By the way, I have a sign that says “Open House, Sunday 3:00 'til 4:30” that I put up in front of the house the week before the open house.)
I usually get 5-7 prospects that come to see the house during this first open house. (Up to this point, I have done no advertising other than my sign out front.)
We do a nice rehab job on our houses, so I can usually get a good contract out of this first batch of lookers. If I don’t, I advertise in the paper and either have a formal open house the following Sunday, or I bunch up prospects, scheduling 2-3 buyers at a time to see it.
I will not write a contract at an open house or when I am showing it for the first time. First, I require a buyer to be pre-qualified. (About half of my prospects elect to complete my credit information sheet so I can fax it to the lender.) Second, I don’t want a buyer to enter into a contract without “sleeping on it”. Many investors try to lock a buyer in a soon as possible. I want a buyer who is seriously committed to the process. I don’t want someone who is “infatuated” with a house, only to have them back out later, or not persist with the loan process.
Hope that helps.