A real estate caravan is when multiple agents tour available properties in a specific area, fostering collaboration and networking. This process helps agents stay informed about local inventory, exchange insights, and potentially find buyers for their listings. Caravans benefit seller agents and their clients by maximizing exposure for quick property sales. This guide delves into real estate caravan types, importance, scenarios, differences from open houses, pros, cons, and tips for success.
Types of Real Estate Caravans
There are various types of caravans in real estate for different situations. For example, an office caravan is when agents within the same brokerage tour each other’s listings. This differs from regional caravans, where agents from different offices show and tour their listings.
Let’s explore a few different types:
- Virtual: Agents take turns showcasing their listings within a scheduled time (three to four hours).
- In-person agent: Agents physically tour and showcase each other’s listings.
- Luxury homes: Exclusive tours featuring high-end, luxury properties.
- Commercial properties: Highlights available commercial properties to agents or investors.
- Neighborhood: Emphasizes properties within a specific neighborhood.
- New construction: Showcases newly built or under-construction properties.
- Investor: Tailored for properties with potential investment opportunities.
- Property management: Leasing agents tour real estate agents through properties related to the same property management company.
Example of a virtual real estate caravan (Source: Facebook)
Differences Between Caravans, Open Houses & Broker Open Houses
After learning what is a caravan in real estate and its various types, it’s time to learn the difference between an open house and a caravan. While the intent of a caravan in real estate is similar to that of a real estate open house and broker open houses—meaning they’re intended to get the property in front of as many eyes as possible—they are not the same. Check out the table below to know their differences:
Pro tip: Although caravans are typically agent-exclusive, if you have multiple listings in one area, you could also host a caravan for clients to tour multiple properties in one day.
So, when should you choose an open house or caravan? Agents may host an open house and do a caravan to attract more buyers to the home. This can be an effective strategy when properties are nearby and the agent has multiple listings. If organizing a caravan is challenging, a buyer’s or even a broker’s open house may be the best option. It depends on the seller’s preferences and the agent’s availability.
For prospective buyers, an open house is a better choice. Open houses encourage lingering. And if the buyers aren’t interested in that particular property, the opportunity to show them other listings is higher than during a buyer’s caravan, when a group of buyers tour simultaneously, going quickly from one home to another.
How to Host or Manage a Caravan
There are several ways to make your caravan in real estate unforgettable. Let’s explore some more ways to host a successful real estate caravan.
Step 1: Choose the Properties
When hosting or managing a caravan, the first step is to carefully select the properties that will be included and shown in your caravan. It’s essential to choose listings, specifically in suburban or rural areas, close to each other or within a reasonable walking distance (typically less than a mile). This ensures guests can easily move between properties without inconvenience. Driving is recommended for properties more than a mile away. After that, inform the homesellers that their listings will be part of a real estate caravan.
Pro tip: Keep in mind that not all of your guests may be able to walk between properties. Have alternative methods to walking, such as a van that can shuttle individuals if needed.
Step 2: Create a Guest List
Consider inviting every real estate professional in your sphere of influence (SOI) to the caravan. This includes professionals from your own company and other companies in the industry (e.g., organizations you’ve established a relationship with or where your friends work). The event can last about two hours and provides an opportunity for attendees to interact and ask questions about the property or the real estate market. Inviting a diverse group of professionals can increase the chances of finding the right buyer or agent for the property.
Step 3: Prepare the Properties
Before putting a property on a caravan tour, conducting a thorough walk-through is crucial to identifying any areas that require attention. Note any cleaning or staging needed, and ensure the property is free of clutter and unpleasant odors that might detract from its visual appeal. Doing so guarantees that the property is presented in a visually appealing and inviting ambiance.
Step 4: Send Invitations & Advertise
Invitations, follow-ups, and emails to your list in your customer relationship manager (CRM) are also part of your overall lead generation and marketing strategy. Here are some other ways to advertise a real estate caravan:
- Social media: Post the caravan on your social media pages. If you belong to local realtor boards, groups, or networking events, send invitations to their members. For a broader reach, you can also share it on a local online realtor bulletin board, group, or newsletter.
- Phone: You can call your SOI while sending out invitations to others in bulk.
- Email: Send targeted emails to your contacts by creating and personalizing the invite.
Step 5: Provide Guests With Food & Beverages
Providing food and beverages will make your guests feel comfortable and at ease while viewing the properties. These might include tea, coffee, finger foods, and baked goods. These food items are easy to grab and go, so they’re perfect for a caravan where guests move from one property to another. In addition to these types of snacks, consider offering more filling options like sandwiches, wraps, or salads. These food choices are still easy to eat on the go, but they provide more sustenance, especially when you’re touring for a few hours.
Example of food and beverages offered in a caravan (Source: NAR)
If you’re planning to offer alcoholic drinks like wine or champagne, it’s important to remember that not all guests will want to partake. Be sure to provide non-alcoholic options like sparkling water, fruit juices, or sodas. Overall, providing food and beverages is a great way to enhance your real estate caravan and make your guests feel appreciated.
Step 6: Bring & Distribute Printed Marketing Materials
Ensure you bring your colorful listing data sheets, real estate brochures, and other essential information about the property. It is crucial to create listing packets containing all the necessary details of each property and to include your business cards so agents can follow up to schedule showings with their buyers. Use branded materials like pens, T-shirts, or mugs and folders for your packets and strategically place them where guests can easily pick them up when they arrive.
ProspectsPLUS! real estate marketing materials (Source: ProspectsPLUS!)
ProspectsPLUS! offers access to diverse premade templates of real estate marketing materials, such as postcards, marketing planners, and direct mail products, that you can customize to align with your company’s brand. Another outstanding feature of the platform is the capability to automate campaigns, allowing agents to focus on tasks like finalizing the guest list and preparing the properties for the caravan.
Step 7: Show the Property
Make sure your guests are well-informed about the home’s unique amenities and features. Provide them with a checklist of notable features highlighting the house’s interior and exterior. This will give your guests a better understanding of the properties and enable them to fully appreciate them. In addition, take advantage of social media to showcase your property to a wider audience.
By live streaming your real estate caravan, you can provide other agents and prospective buyers with a virtual tour of your home. This will allow them to explore your property from the comfort of their own homes, even if they can’t attend the physical tour. This can be a valuable tool for attracting potential buyers and increasing interest in your property.
Step 8: Follow Up & Send Appreciation Letters
After the caravan is over, follow up with your guests by sending them personalized appreciation notes using stationery and your handwriting. Remember to include your business card and let them know you’re available. It’s best to send these notes within one to two days after the event. Send a brief follow-up email a week later thanking them again for attending. This will help you build stronger relationships with your guests and leave a positive impression about your business.
30-Day Activity Feed grid in the Market Leader system (Source: Market Leader)
The contact information and housing details are transmitted from your Market Leader website to your real estate CRM. In addition, your multiple listing service (MLS) can also be linked to your CRM to send listings and include information about listings in your marketing campaign. To make the most of a listed property, you can re-engage your clients by scheduling an open house, categorizing clients in your CRM, and communicating with one or multiple clients simultaneously to provide relevant updates and generate new interest.
Real Estate Caravan in the Modern World
In the 1990s, before real estate websites and 3D tours became popular, caravans were a common way to showcase property listings. In rural areas, agents would travel in another agent’s van, touring each other’s listings. However, with today’s technology making it easier to showcase properties online, the question arises whether caravans are still necessary.
Some agents argue that caravans in real estate still have unique benefits despite being in a world where people rely on technology to gather leads and run their businesses. With caravans, agents can discuss potential deals and share insights and perspectives on the market, leading to valuable professional relationships and referrals.
Caravans enable agents to save time and better manage their schedules by touring multiple properties in a single day. Additionally, caravans can be a more cost-effective way to tour properties, as agents can share transportation and other expenses.
Real Estate Caravan Pros & Cons
Like any real estate marketing strategy, a caravan in real estate has upsides and downsides. Some of its pros and cons are the following:
When to Not Caravan in Real Estate: Real estate caravans can be advantageous in some cases but may not be the best approach in certain situations. For instance, caravans should be avoided if properties are located far apart since it lacks efficiency. Similarly, if there is limited inventory, caravans should not be used. When there is a scarcity of new listings or properties that meet your requirements, a caravan may not be a worthwhile use of your time.
Now that you know how to host or manage a caravan in real estate, the next step is learning some tips to help you have a successful caravan and what you’ll do or prepare if you attend one. The following tips will help you make a smooth and thriving sale:
- Tip 1—Communicate and network: Hosting or attending a caravan event will allow you to meet agents and connect with lenders, home repair workers, and bank representatives. This can result in potential collaborations and business opportunities.
- Tip 2—Ask questions: Use the opportunity to ask questions such as, “What is the current market situation in this area?” “What are the common struggles that agents face?” and “Which other caravans do you recommend attending?”
- Tip 3—Bring your business card: When you host or attend the caravan, it is recommended that you bring your business card and a notebook. These items will come in handy during the event and help you stay organized and professional.
- Tip 4—Practice active listening: If you’re attending a caravan, pay attention to the pitches given during the event. You can gain insights into the market situation, such as price reductions, stagnant inventory, or areas that are doing well.
Bottom Line
Organizing a caravan while selling a property can bring several advantages for agents. It allows real estate agents to share their market knowledge and discuss potential sale prices based on current market trends. Agents can provide valuable insights into what their clients are looking for and may know of potential buyers actively seeking a property similar to the one being sold. This can help attract prospective buyers who may have overlooked the property during their search.