Does the word “caravan” make you picture rogue agents getting their inner gypsies on or a minivan? Well, maybe there’s some overlap, like actually using a minivan to tour homes, but I doubt anyone is going rogue. So, what is a real estate caravan, you ask? A real estate caravan is when multiple agents tour available properties, fostering collaboration and networking. They also inform agents about local inventory, exchange insights, maximize listing exposure, and potentially find buyers for their listings.
Cool idea, right? Let’s delve into real estate caravans and their value for agents.
Types of Real Estate Caravans
There are various types of caravans; office caravans are when agents within the same brokerage tour each other’s listings. Regional caravans are where agents from different offices show and tour each other’s listings.
Check out a few different types:
- Virtual: Agents take turns showcasing their listings within a scheduled time (3–4 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.
Differences Between Caravans, Open Houses & Broker Open Houses
Now that you understand what a caravan in real estate is and its various types (without rogue gypsies), you’re likely curious about 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 obviously are not the same. Check out these differences.
| Real Estate Caravan | Regular Open House | Broker Open House |
|---|---|---|
| It is exclusive to real estate professionals only. | It is open to everyone. | It is exclusive to real estate professionals only. |
| It shows multiple listings. | It is focused only on one listing. | It is focused only on one listing. |
| Guests tour the property, ask questions, and move on to other listings. | Guests tour the property, ask questions, and leave. | Guests typically stay a little longer to mingle with each other. |
| Agents indirectly generate buyer leads through other agents. | Agents directly generate buyer leads through buyers themselves. | Agents indirectly generate buyer leads through other agents. |
| The broker provides property information sheets only. | The broker includes information sheets, disclosures, and purchase agreements. | The broker provides property information sheets only. |
| The event is advertised only to real estate professionals. | The event is advertised to the public. | The event is advertised only to real estate professionals. |
| It is usually a one-time event. | It is held multiple times. | It is usually a one-time event. |
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.
When should you choose an open house vs a caravan? Spoiler alert: Why not do both? You get maximum exposure for your listing. Adding a real estate caravan to your marketing strategy is most effective when properties are near each other and you have multiple listings. If organizing a caravan is challenging, a buyer’s or even a broker’s open house without a caravan may still be the best option. It depends on the seller’s preferences and availability (and if you have enough interest from other agents and brokers to do a caravan).
For prospective buyers, an open house is a better choice. Open houses encourage lingering. And suppose the buyers are interested in something other than that particular property. In that case, 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.
- Choose properties to tour: It’s essential to choose listings within a reasonable distance of no more than a few miles to maximize time and travel.
- Create a guest list: Consider inviting every real estate professional in your sphere of influence (SOI) to the caravan. Include professionals from your company and other companies in the industry (e.g., organizations you’ve established a relationship with or where your friends work).
- Prepare the home: Make sure the home is properly staged or cleaned up as you would for an open house or showing.
- Send invitations and 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.
- Bring snacks: Food and beverages will make your guests feel comfortable while viewing the properties. These might include tea, coffee, finger foods, and baked goods.
- Share marketing materials: Bring your colorful listing data sheets, real estate brochures, and other essential information about the property. Create listing packets containing all the property details and include your business cards so agents can follow up to schedule showings with their buyers.
- Show the property: Besides the in-person caravan, consider a social media livestream. By live streaming your real estate caravan, you can provide other agents and prospective buyers with a virtual tour of your home.
- Follow up and send appreciation: After the caravan ends, send handwritten appreciation notes. 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 to help build stronger relationships.
ProspectsPLUS! offers access to diverse premade real estate marketing materials templates, 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.
Real Estate Caravan in the Modern World
In the 1990s, caravans were a common way for us agents to showcase property listings before real estate websites and 3D tours became popular. In rural areas, we would all hop in a van (could’ve been a Dodge Caravan 😆) and tour 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.
Real Estate Caravan Pros & Cons
Caravans save time and can be a cost-effective way to tour properties, as agents can share transportation and other expenses. Like any real estate marketing strategy, caravans in real estate have upsides and downsides. Check these out:
When to Not Caravan in Real Estate
Real estate caravans may not be the best approach in certain situations. For instance, caravans should be avoided if properties are located far apart since they lack 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.
Real Estate Caravan Tips
After knowing how to host or manage a caravan in real estate, the next step is learning some tips to help you have a successful caravan 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: 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.
Your Take
Organizing a caravan while selling a property has many advantages. It allows you to share market knowledge and discuss potential sale prices based on current market trends. Your colleagues 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. Do you do real estate caravans? Share in the comments below!
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