Hosting a FSBO Open House?

Want to get a room full of real estate agents to shudder at the exact same time?

Just say “FSBO”

Want to get a room full of real estate agents to roll their eyes at the exact same time?

Say “Open Houses work!”

So obviously the topic we’re covering here is going to be a popular one…the FSBO (For Sale by Owner) Open House.

And we won’t sugar coat it…there are mixed reviews on whether real estate agents hosting a FSBO Open House work at all. But we’ll cover both sides of the debate below and, for agents that want to try this tactic out, we’ll offer some important tips.

• Why You should Host a FSBO Open House
• Why You SHOULD NOT Host a FSBO Open House
• How to Convince a FSBO to Host a Open House
• FSBO Open House FAQs

Ready to do one last collective eye roll before we get into the FSBO fun?? 🙄

Should You Host a FSBO Open House?

FSBOs are known to be some of the prickliest, least agreeable prospects in real estate…which begs the question, why would an agent go out of their way to host an Open House for a FSBO? In this video, Kyle Powers from Haven Real Estate Group covers the success that he had in hosting an Open House for a FSBO.

Here are the two main reasons he outlines:

• it’s a reliable source to meet unrepresented buyers
• there’s a possibility to convert the FSBO into a seller client

The second reason is well documented by many agents. Agents treat the Open House like a “free-sample stand” at a retail store hoping to show FSBO sellers what they’re missing by going it alone. And this is why FSBO Open Houses are often part of a larger FSBO strategy in securing listings because the Open House serves as a bridge – linking a successfully executed Open House to the agent’s abilities to represent the FSBO as a listing agent.

Obviously getting listings is critical for agents, but as Kyle mentions the buyer leads are a more reliable benefit of doing FSBO Open Houses. Why?

FSBOs attract fewer showings so buyer activity can be attracted at a disproportionate rate to an Open House even if it’s promoted poorly. And because you’re Open House marketing is top notch, just imagine the turnout?

Well that’s the opportunity! For this reason, hosting an Open House for a FSBO has the ability to generate more leads than hosting Open Houses for other agents.

The Case for NOT Hosting FSBO Open Houses

Facts: many experienced agents advise against FSBO Open Houses, arguing that it helps FSBOs sell without an agent’s help. In this video by Kevin Ward he lays out his case for why FSBO Open Houses are a waste of time.

As you can tell from Kevin’s strong position on this there are many reasons agents may want to avoid FSBO Open Houses:

• signals low value if you’re willing for free for a FSBO
• giving away your tactics for free to the FSBO so they really won’t need you to list their home
• concerns on effectiveness in converting FSBO sellers into dedicated listings
• liability issues, MLS/brokerage rules against hosting FSBO Open Houses

But one of the common counterpoints may prove that there is value deep down in doing FSBO Open Houses. Many agents complain that FSBO owners are often inundated with similar offers from agents…thus are rude and generally unresponsive.

So if this is true, are these agents all chasing a losing opportunity? OR is there actually value to real estate agents hosting a FSBO Open House? Maybe a topic for another discussion…

But for the rest of this post, let’s assume that FSBOs are a valid strategy and FSBO Open Houses are part of that strategy. Shall we proceed?

How to Convince a FSBO to Host Open House

We’ve got an entire article just about FSBO scripts which will give you tips on generally how to appeal to a FSBO (they are known for being difficult) but here’s a script to show how to convince a FSBO to host an Open House.

Agent: Good morning [FSBO’s name], this is [your name] with XYZ Brokerage. Have you sold your property at 123 Main Street yet?

FSBO: No.

Agent: I’m assuming you’re selling by owner because you want to net as much as possible after all expenses?

FSBO: Absolutely.

Agent: I completely understand. Just so you know, I often work with FSBO clients and have successfully helped many sell their homes by hosting an Open House to attract buyers. Would you be open to me hosting an Open House for your property? I would handle the marketing, preparation, and would run the event itself – including all visitor interaction – taking the hassle off your hands while giving your property the exposure it deserves.

FSBO: Specifically how are you going to do that?

Agent: Well, [FSBO’s name], here’s how I would manage your Open House to attract serious buyers:

1. Professional Marketing: I’ll create professional marketing materials and promote the Open House across other real estate platforms.
2. Online Advertising: I’ll advertise the Open House on social media, our brokerage’s website, and other online platforms to reach a wide audience.
3. Email Campaigns: I’ll send targeted emails to my entire newsletter list to generate interest.
4. Signage: I’ll place 20+ directional signs around the neighborhood to attract local traffic to the Open House.
5. Staging-lite Advice: I can provide budget friendly tips on how to improve the actual presentation of your home to make it more appealing to buyers in this market.
6. Open House Event: I’ll host the Open House, greet visitors, provide them with property details, and answer any questions they might have and I’ll use a cutting edge sign-in system to make sure all visitors sign-in before touring the property.
7. Follow-Up: After the Open House, I’ll follow up with all attendees to gather feedback and identify serious buyers.

My goal is to showcase your property to serious, qualified buyers who are ready to make offers. Would it be convenient for me to stop by today at [time], or would tomorrow be better for you?

In step 6 above highlight your use of technology like Curb Hero to maximize the opportunity (we also have smart QR Codes you can place on your signage to attract as many visitors as possible).

FSBO Open House FAQs

How Can I Hold an Open House for a FSBO?

1. Permission: First ensure you have permission from the FSBO seller to hold the Open House.
2. Marketing: Advertise the Open House through various channels, including the MLS (if possible), online platforms, social media, and local community boards.
3. Preparation: Stage the home properly, ensuring it is clean, decluttered, and appealing to potential buyers.
4. Signage: Place signs around the neighborhood to direct traffic to the Open House.

Where Should Agents/FSBOs advertise Open House?

• Online Listings: MLS (if possible), Zillow/Redfin/Realtor.com, Craigslist and other real estate websites.
• Use Social Media: If using Instagram and Facebook go “live” and give a mini-tour of the property to maximize exposure. Create a Facebook Event for the Open House. Ask your friends/associates to share.
• Email Lists: Email your database about the Open House event and ask them to share with other interested buyers.

How Often Should I Have a FSBO Open House?

As often as a) the seller will allow it and b) that there’s enough activity to warrant the time spent to hold the Open House. And we have an article on best Open House times here.

Conducting Open Houses for FSBO properties gets mixed reviews from agents…but there’s no doubt that this tactic has demonstrated results for many agents.

Especially as part of an overall FSBO strategy for real estate agents aiming to convert FSBO sellers into listing clients.

When FSBO Open Houses work, it’s usually because the agent approaches the FSBO with an understanding of their unique needs AND demonstrate their industry expertise and marketing skills to give the FSBO a taste of “how it’s done in the pros”.

And sure FSBOs are notoriously difficult prospects, but remember, these challenging sellers present a serious opportunity in disguise.