Open houses are no longer just for rookies, with a growing number of seasoned brokers reincorporating them as a way of grabbing some of the highest conversion rates in the business.
“Five out of every 10 people I meet through an open house will ultimately get a mortgage through me,” said Deepak Bansal, a Mississauga-based agent with Dominion Lending Centres Mortgage Village. “We’re only talking about an hour or so, but it works, and the thing is that you may not necessarily convert the lead for that particular property, but by staying in touch, you’re getting them when they do find that property.”
That strategy hasn’t been lost on the growing number of mortgage professionals now reintroducing the old-fashioned open house to their marketing and sales strategies. It’s also perceived as a way of bettering the kind of 10 - 30 per cent conversion rates they routinely get through their online efforts.
The open houses also allow for the kind of warm leads more focused on relationships than rates.
Mortgage professionals are also using them as a way of taking back control of the broker-Realtor referral partnership by creating leads they can then share with the real estate professionals who host those open houses.
“The approach is important,” Bansal told MortgageBrokerNews.ca. “Brokers have to sell it to Realtors as a way of helping them generate business from prospective homebuyers that have no real connection to them outside of the open house.
“Most will likely buy another house and by you, the broker, staying in touch with them, you can refer them back to the Realtor hosting the open house as someone to act as their buying agent.”
It’s similar to the sale patter Bansal and other brokers offer Realtors who may be reluctant to have a mortgage professional onsite, arguing it only benefits those brokers.
“Realtors aren’t open to talking with a broker if you just walk into an open house,” he said. “It has to be presented as an opportunity for Realtors.”