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Are "Open Houses" Dead In Your Area?

Working where I do, I have an opportunity to speak with agents all over the country about their local markets and the trends that are happening there. One conversation I had yesterday prompted me to pose a question on our facebook page about open houses.

I was curious to know, "Are open houses were still a viable option for marketing a home?" Or, are they are simply an avenue by which home owners feel special? Are they really worth it?

I had an amazing response by several fans of the site...And thought it was worth sharing. And, as a result, I would like to continue this conversation here. So, please add your experience to this post...Let us know if you do open houses. Do they work for selling the home? Do you use them to get buyer leads? Is this something the seller demands to make it appear that you are doing your job? Anyone have success with them?

Here is the conversation in it's entirety reposted from the fanpage.

Real Estate Client Referrals I asked this on Twitter earlier...But, Im curious --- Is the "OPEN HOUSE" still a viable way to help market a home?? Or, is it dead in your area??

Justin Nielsen

Although we try to kill it! If done right it can be a great showcase for your skills.

Debra Randall

It is dead in my area because our homes a spread apart and most of my sellers realize that you are getting more curious lookers than real buyers -- known for a while that 1% of homes sell through an open house. There are a few factors...1) Security for the agent and the home itself-we don't know who is coming through, 2.) We need preapproved ... Read Morebuyers and during an open house, you do not know they are pre-approved or not, even if you ask. 3.) kicking the homeowners out for two hours and then no one comes through but neighbors -- another discouragement for the sellers. It can be a good way for new agents to get buyers but I'd rather provide ready,willing and able buyers for my sellers.

Real Estate Client Referrals

Justin and Debra -- Thank you for the feedback! Very much appreciated!

Patricia Gonzalez

Works best on New Construction homes in our area

Cheri Malley Smith

I don't think they're effective for selling the home. Most visitors were driving by and saw the sign which means when they walk in the door they don't know the price, sq. ft., beds/baths etc. They are potentially a good way to meet buyers though.

Cathy Valdiviez Baumbusch

Open houses don't sell homes here. They did during the buying craze if the home was listed just hours before the OH. Or if you're the only listing in a high demand neighborhood. Nowadays, they are a great way to meet buyers.

Debra Randall

You're welcome!

Real Estate Client Referrals

Patricia -- That was the consensus on Twitter.

Cheri -- Again, that was the consensus earlier re: getting new buyers

Cathy -- Agreed.

Jennifer Mueser Bunker

I've been in real estate for 7 years in Utah and never once have I had more than one person come to an open house. It just doesn't work here! I think that may be because there is always a lot of inventory on the market during any given market cycle. People are using the Internet to better target lots of properties to maximize their time.

Real Estate Client Referrals

Jennifer -- EXCELLENT point! And, something that hasnt been mentioned as of yet. I whole-heartedly agree!

Martha Ayala Pitis

Never has worked for me or any of the agents in my company....you'll get nosy neighbors, an occasional mail man ........definately does not work in Laredo,Tx.

Real Estate Client Referrals

Martha -- Thank you!

Daniel Rothamel

We've done HUNDREDS of open houses. Out of all of those, we've sold ONE listing as a direct result of the open house. Most agents use them as a way of gaining buyer leads, more than anything else.

Real Estate Client Referrals

Very pleased to see Daniel Rothamel on our fan page!!!! Thanks, Daniel!! That seems to be the majority consensus on them....good to get buyer leads, but useless as far as selling the actual house.

Nannette Saunders

Years ago I did an open house & sold the house. I have not done one for years. I think there are better ways to find buyer leads. I tell my sellers I am not the agent they want if they feel they need an open house. I'd rather spend two hours marketing on line where the buyers are...

Peggy Magnanelli

I agree with all of you. Great way to find buyers. not usually a good way to sell the house. One thing tho I was buying 4 years ago and went to look at a house and the house next door was doing an Open House and we ended up buying that house. I have never sold a house doing an open house.

Real Estate Client Referrals

Nannette -- Hello, darling! I would tend to agree with you where the buyers are... ;-)

Peggy -- Stroke of luck having the next door neighbors doing an open house. ;-)

Karen Story

Although I have sold many homes from Open House, I think they produce more listing leads & buyer leads if done right. Our company has Super Sundays stretegically scheduled throught the year. We have hundreds of homes open on these select Sundays and they are well promoted. We think they are a vital part of the marketing process.

Real Estate Client Referrals

Karen -- I think if done right, such as the example you put up here, they can be...I just rarely see examples such as this one. Thank you for adding it.

Again, please feel free to add your experiences with open houses so that the rest of us might learn how you succeed with them...or, how you use them to your advantage! I look forward to reading your responses!

If you would like information on getting more buyers for your open houses, please contact Clint at 800-977-7058. Or, follow us on Twitter at www.twitter.com/recr or follow Clint at www.twitter.com/TheRealClint.

Posted by Clint Miller on 08/25/2009 07:41 AM

Comments (146)

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Originally posted at: RECR's Blog: Are "Open Houses" Dead In Your Area?

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146 Comments on Are "Open Houses" Dead In Your Area?

AUG

Open houses are doing fine in our area. Market is good and we still have good housing options.

Bob -- Thank you for the feedback, my friend! Good to hear that there are places where it is still working to actually sell homes. ;-)

I think they are a waste of time in my area, at least for me they have been. Out of the open houses that I've had, I have contracted at one. The others seem to mainly be nosey neighbors if anyone shows up at all!

Clint - As much as I can't stand hanging out at open houses, they have been a viable option for selling houses here (at least for me). I have sold four homes during open houses in my career, and I don't do them very often. I haven't done one in 2009 at all. One of my closings earlier this year came from a couple that met me 8 months earlier at an open house in my neighborhood. If the seller wants an open house, I am happy to oblige, but I typically allow one of my agents to do it for me.

Laura -- I have spoken with many an agent that has the same feelings on the subject that you do. ;-) One comment I got was, "Im tired of feeding cookies to the neighbor kids" :-)

Jason -- Thanks for the comment, brotha! (You are up early!) One thing I have noticed with those that do open houses is that they cultivate the people that show up as buyers. I think, from a marketing standpoint, that is one of the main benefits from having them.

I will usually do one when a listing is first on the market--and I invite all the nosy neighbors. Who better to go out and spread the word than someone who already lives in the neighborhood?

As with most marketing, I see more indirect benefits: listings down the road, buyers who hold on to my card, a chance to get some feedback on the property.

Particularly in a neighborhood where I am trying to establish a presence, it gives me an opportunity to be out there talking to the neighbors and being seen as the expert.

Clint,

While I'm not big on Opens (nor are some of my sellers), I recently hit the jackpot. Our rural area doesn't get much traffic but once in a great while - Shazam!

Holly -- You bring up a good point about the networking with the neighbors thing. And, I agree with the side-benefits of holding one....good philosophy with using it to break into a market.

Irene -- Congrat's on hitting it big with one!! That's awesome!

Hi Clint!

I haven't done a public open house in many years, despite having sold several listings at open houses. I do, however, do Broker Open Houses. Other brokers are typically the ones picking out the houses that their buyer clients are going to look at, and if I can get/keep my listings in the forefront of their minds, I increase my rate of showings and therefore potential sales. Other agents are part of our market and they are part of who I market to.

I try to attend as many Broker Open Houses as my time allows so I can see in person those properties, and I've sold homes to my buyer clients that I've seen during a Broker Open House. It was because I saw it in person that I knew it was the house for them, so I took them to see it.

I don't do public open houses for a variety of reasons - safety, the time involved for minimal return on both my part and the seller's part, etc. If a buyer is interested in seeing a particular home, they'll set up an appointment to see it. With the use of the internet the way it is, a properly presented home can be seen online 24 hours a day - a virtual 24 hour open house for whoever wants to see it.

There ya go! ;-)
Ann @acummings

Clint, we have them around here, but they honestly do not usually sell a home. I held one open in May where the clients came through and they ended up buying it -- however, they had an agent already, and would have come through with her anyway.

Public opens can be very good to find buyers or other sellers -- people DO come through to check YOU out.

Sellers need to understand that opens can be great -- just not to sell their house. That comes down to price & condition. Not open houses.

Ann -- Awesome comments with regards to Broker Open Houses! I was hoping someone was going to chime in from that side of the fence.

With regards to the concerns you brought up about public open houses, I think that the minimal return is the biggest issue. It is hard to dedicate a day or half a day to this kind of activity with little or no return on your investment.

Thanks again!!

Marney -- "Sellers need to understand that opens can be great -- just not to sell their house. That comes down to price & condition. Not open houses." That is probably the best comment about an open house I have recieved yet!! Thanks you!

Clint, Here in DC, the Open House is alive and well. I think you have to work to promote it, and you also need a location where you're likely to attract traffic. I meet many buyers at Opens and have had a number of listings sell to people whose agents sent them. And I know this isn't true for all markets, but here it really does work.

Patricia -- I would agree with you that the success of an open house is directly proportional to the promotion that goes into it. I think this is one of those things that can work, if done right.

Open house have been dead now for years in Atlanta.

Jim -- I have heard that from other agents in Fulton also.

Hi Clint,

I generally don't do open houses.....not much traffic comes through, and those who do seem to be Sunday field trip kinds of folks. I meet my buyers through networking....getting to know people in the neighborhood, going to jewelry parties and the like....open houses are passive activities, and I think there are lots of better uses for my time. Plus I'm not thrilled about being a sitting duck in an empty house. If a seller insists on one, I'll do one....but I don't go out of my way to encourage it as a good way to sell their home....because statistics prove that open houses for the most part don't sell homes (at least not the seller's home).

I do agree with Ann that Broker Opens are a great way to get buzz going about your listing .... especially w/the folks who matter .... the agents who will sell your home!

Good Morning Clint! Open Houses is a very interesting topic and one I have had an opinion about for several years. (I know, hard to believe I have an opinion! I try so hard to keep my personal views to myself. *grin*). In my area, Open Houses are dead. Yes, I am sure that some agents in my area have had success or perceived success at an Open House. Even a blind squirrel will stumble across a nut. Here are some of the problems I have with Open Houses.

1. It's like throwing a net out on a lake and hoping to catch a swordfish. Ummm.. swordfish are salt water fish and therefore, most likely won't be hanging out in a lake just waiting for a fisherman with a net to float by. Marketing of a house should have a target audience. Perhaps that target audience should be someone who qualifies to actually by the home.

2. Agents are only supposed to show homes to perspective buyers who are ready, willing, and able to purchase the home. In my experience, most people attending Open Houses do not meet any of those 3 criteria. They are simply looky-loos or nosey neighbors. Sure, everyone wants to see John Smith's house that's on the market, but would we parade a group of 25 high school students through a home just because they want to learn about 1980's architecture for art class? No, I don't think we would.

3. There's the tiny issue of safety. Oh yes, I said safety. Opening up a home for just anyone to view is opening up the home to possible burglary. I know that in my area, in the past 6 months we had two cases of theft during an Open House. These are just the cases I've heard about. Yo may be thinking, that is ony 2 cases out of how many Open Houses. What's the chance my Open House will have something stolen. Well, 100% when it actually happens. I'm not willing to put my client in danger or their belongings in danger.

These are just 3 reasons I don;t hold Open Houses. I'm not going to bore you with the fact that they waste my time, I've never had a closing due to an Open House, and they are a waste of time (yes, I said it twice).

Open Houses do work in some areas. In my area they do not. You need to evaluate your area's Open House success rate and discuss it with your client before agreeing to hold one.

Coleen -- Im not a very passive person, so I would agree with you in that there are other things that I could do with my time to make my situation better. And, like you, I completely agree with Ann. ;-)

Sarah nailed it. I talk about expectations during the listing appointment and how I am going to market the sellers property and Open ain't one of them. I'm better off spending that time marketing the sellers home in a productive and efficient way that ultimately acheives the objective: Getting the home sold.

Good morning, Sarah!! I am so happy that you decided to come out of your shell for the purposes of this comment...LOL!

I love the point you brought up about the 3 criteria that buyers should have to view a home...and I agree that very few, if any of them, meet that criteria. Also, I think that you have some awesome support as to why they are dead...excluding everything else, the safety thing is HUGE!! But, aside from that... "I'm not going to bore you with the fact that they waste my time, I've never had a closing due to an Open House, and they are a waste of time (yes, I said it twice)." That is hilarious!!!

And, thank you for the awesome, insightful comment!!

Craig -- I can not agree with you more! Sarah did nail it.

I have no luck with open houses and usually warn my listings that if they insist on one being held I will get a mentoring agent to host it.

Lesley -- You and I have talked about open houses in the past...I like the idea of using a mentoring agent to host them, if the seller wants one. Great point.

Yes, I got up a lot earlier than I wanted/expected. That is one of the pleasures of having a toddler who just finished potty training. I couldn't go back to sleep after she had to "go".

Jason -- Just starting that with my little boy. Hopefully, he catches on quick. ;-)

It really varies from area to area, depends on the inventory and the type of house. I have a friend who sells perhaps 50% of his listings this way, in an area with a small inventory but one which attracts alot of serious buyers. BUt this is an exception. We tend to see alot of open houses these days, and a good number of folks out there, but I suspect many are not serious buyers, or folks ho are actually qualified. Agents find more buyers this way than than sell the houses.

They have never been a viable marketing tool in my rural market. We have even tried broker opens with free food and give aways and no dice. I have a friend who lives in a neighboring rural community who tried going all out two weekends ago and not takers. I am sure they work in other markets and that is cool!

Jeani

Cllint - I have to agree with Patricia. We are seeing that the open house is still working quite well here in the DC area. Buyers are looking online everyday and see pictures of the homes they like and will go to the opens on the weekend to get inside the home, especially if it is a new listing. If the house shows well at the open andthe house is priced right, it is not uncommon to see it go under contract in a few days by someone who visited the open house.

Public open houses rarely sell the house held open. I don't think they're as good for meeting buyers as they used to be, because more open house attendees already are represented.

Jeff -- Yes, it does very from area to area. And, I would agree that it is used to find more buyer contacts than selling the actual home.

Jeani -- Rural markets would be really hard to get an open house to work in....kudos for giving it a good try with the give-aways!

Dan -- I think that goes along with the idea of them not working in really rural areas. In areas where the population is very dense, I think they would work much better. And, your experiences have shown that to be true.

Brian -- That is a valid point. Buyers that show up for open houses already have an agent.

Sigh - LOL. How about that for a start! We have huge success with open houses and we never sit at the house and do nothing - definitely not a time waster. Routinely we have 30-40 groups of people in on our open houses. We don't have time to sit. They work because we put the work in it. We have sold houses from them and will continue to do so. Now location is still important and the most recent one we had which was in a very desirable location attracted a huge amount of visitors and 4 offers! Yes I said 4! Even neighbors came over and wanted to buy the house. We put minimum of 25 signs up - which by itself takes 1-2 hrs. It's a huge production for us and it takes time and work, but sellers love it. They know going in that that percentage of houses sold in opens is still low, ours is actually better than the 2-3% that I've seen thrown around here. But most say any chance is better than none. If a seller doesn't want us to do one then we don't but we do include that in our marketing.

We also have a huge number of buyers just driving around looking and many with cash!

Also, as to meeting buyers. Buyers are really fickle here it seems. So many now only want to buy directly from the listing agent, so getting a buyer from an open house is not that easy and not our focus. The other more positive benefit is that owners/future sellers in the neighborhood will know us and will call when the time comes. ~Rita

I find them almost useless in selling that house, but a very rich resource to find buyers.

Rita -- LOL! Wow!! It sounds like they work really well for you to have that many groups of buyers at an open house!! Thats amazing!! That is one of the best testimonials FOR them that I have ever heard!!

Dave -- Agreed on the buyers thing, for sure!

Hi Clint,

We do a lot of open houses in our town. As everyone has noted, they don't often sell houses, but we see buyers using them to look at properties without their brokers (more casual perhaps?) and I have gained clients from them. My last open house was a two-hour open with little promotion (weekly news insert, signs with balloons) and I had 15 people go through. Several were people who had friends in the neighborhood who wanted to live closer to them. You never know -- it may work out!

Hey Clint - I heard from a couple of guys in my office a couple of weeks ago that they are getting many new buyer clients from their open houses...but I don't think it is helping them sell the house they are holding the open house in....hmmm.

Marcy -- Actually, thats a really good turnout compared to some of the others that I have seen. Gaining clients is always a good thing. ;-)

Well, hello FCRE -- :-) Yeah, that seems to be a common denominator with them.

I think they work great if you have a home in a high traffic area and promote it correctly. I had one open house that had well over a 100 people show up.

Here it all depends on the price. THe under $ 400,000 (low for my market) houses are booming during Open Houses - one weekend had 10 people and 3 offers.

On the higher priced homes and co-op market they are dead. A good time to catch up on paperowrk or read a good book.

George -- And, I think that is the whole recipe for success with an open house. Nice work!

Donna -- That is one factor that hasnt been brought up yet....price. 30% offering ratio is huge!!

I totally agree with Sarah, she did nail it. One huge factor in our area is the safety issue she brought up. Not the theft issue, but violence and robbery of the agent. I always try to take someone else with me.

Also, when I'm doing an open house, it's not to sell that specific house, but to get other buyers and sellers who come through. As some people said before, the neighbors and other people come through simply to lookie-loo. But my friend Dana has had closed transactions because she showed the lookie-loos other property after the open house was finished up that same day.

I would echo those who don't see open houses as a great way to sell the house being held open. I have had closings as a result of open houses - but only with buyers that I met at the open house. We track the source of buyers for our listings pretty closely & can show sellers that open houses don't even make the list.

Hi Clint ~ I wouldn't say they're dead in my area, although they are very hit and miss...One weekend you'll get 9 parties through and the next just 1.

Mostly it's a good opportunity to meet buyers and I have made a couple of sales a year to buyers I meet at open houses up to now.

Are they worth it for the seller? Usually not. If it truly is an inconvenience to my sellers to hold open houses then I tell them the chances are slim to none that a buyer for their home is likely to come through and not to worry about it. We'll find other more productive ways to market their home.

Linda -- She sure made a valid arguement for not doing them, that is for sure! Dana sounds like a smart cookie...Nice work!

Nancy -- Nice call on keeping track of that kind of thing to help educate the sellers. Awesome point!

Denise -- Cultivating the buyers in important..but, only if they show up. ;-) One doesnt seem worth it...10, yes. And, I would agree with you on the point that they are not worth it from the seller standpoint.

Pretty much dead in our area too. First off, I agree with Sarah about the "ready willing and able" buyers and the safety issue.

Now as for Rita's comment: We put minimum of 25 signs up - which by itself takes 1-2 hrs. In the Raleigh, Cary, Apex area of North Carolina it is against the law to put up more than 2 signs and they have to be the approved sign (small red & white directional) with the listing agents license number on it. We can't do more than 2 Open Houses per home per year. NO BALLOONS or any thing like that. You can see that the government has in all practicality killed the Open House here.

With all the pictures on the Internet and the price of gas, very few serious buyer's are driving around looking for houses to view.

I've been in the business for two years. Have probabaly hosted 30 - 35 open houses (mostly for other agents). Sometimes they're great! Sometimes they're dead. Almost all the traffic have recieved is from the push-in signs that I put around before the open house. I've tried mailing neighbors, mailing my SOI, Posting on Twitter or Facebook and my blogs - our company always advertises them in newspapers (yes there still are a few of those paper publications around) and on all the websites, but 90% of the visitors are people that were driving around. I have acquired 1 dozen or so valid names for my SOI and I have two sales that were to people I met at open houses.

Hi, Clint:

Open houses are still being held in my area. Their effectiveness depends on the property. If it is priced too high, there won't be very much traffic. However, when properties come on the market and they are priced well, or aggressively, it is well-worth the time for the broker to do an open house.

A good open house depends on the location and the skill of the agent. It's not just showing up and putting a sign in the yard. You have to "work it" Most of the buyers I am currently working with have come from successful open houses.

In our area it's totally price driven ! The affordable properties otain the most traffic !

Two years ago we used to get 14-20. Now we are lucky to get 3

In my neck of the woods, the success or failure of open houses can be very different from one town to the other. I've done extremely well holding opens with new construction and homes in very desirable areas. When the market was hot I sold several a year from the open houses. In the current market, so much depends upon the marketing of the open house.

I've also found it works very well to get to know the neighbors. If they feel they know you, you have a better chance of getting their listing when they decide to sell.

Linda -- Good point about the allowable regulations and restrictions for advertising the open house! Never thought of that...

Rick -- 2 out of 35 isnt that bad of a ratio. Hope they were good ones! :-)

Hi Claudette! -- I think the individual property has a ton to do with whether or not the open house is effective also. I think the price is a factor, location, etc....as well.

Carol -- Agreed on the location...and that you do have to "work it". Good point. If you suck, your open is gonna suck. ;-)

Michael -- I think that is true for most areas.

Bonnie -- And that is one of the biggest reasons for that decline in open houses...they are just not that effective. In that same two years, has your internet leads increased dramatically to offset that decline? Id be interested in knowing that.

Open Houses in my area have always been not well attended, even when the market was booming. However I still do them on average one a month. Why you ask, I still believe I can sell the house I ma sitting in from the Open House.

Alan -- I think that believing in yourself and your ability is important. someone has to do it, right? ;-)

Geri -- That is one part of this whole problem that really fascinates me....the differences from market to market. I think everyone had good success when the market was hot...but, having seen the opposite side of things for the better part of nearly 2 years, it has changed dramatically. Makes me wonder if it will come back up when the market recovers...

As a relatively new agent, I love open houses. It gives me a chance to meet people and talk about real estate. I have done five open houses and twice I have picked up buyers that closed on houses with me. Of course, they did not buy the open houses that I met them at!! The open house is still a viable option in Northern Virginia.

Hi Clint, Until recently I would average 5-10 opens each week. I love it when agents parade out the same tired old reasons why opens don't work. Total BS ! Stop complaining about how tough it is and get dragged down by all the reasons they don't work and get out there and benefit from meeting potential buyers/sellers ! Most of my business comes from doing opens so I love it when other agents allow themselves to be convinced about the effectivness of open houses !

Dee -- As a new agent, they can be valuable from a marketing and networking standpoint. On that point, I agree with you.

Bill -- BS not withstanding, I think you have a very valid point. As I stated just above with Dee, I think there is a valid reason to hold them from a marketing and networking standpoint. And, in areas where they are successful in driving traffic, why not do them??

In the past year, the number of open houses in our market has decreased dramatically. Pricing has more to do with a home selling than whether open houses were held.

Sarah Stelmok's opinions are always so much fun to read - even if she doesn't give them all that often. My personal jury is still out on open houses. Can't say I've sold anything from one, but most of my open houses have been with new builders and the purpose was more for me to get out there and work on my communication skills than anything else. I never expected anyone to outright buy the home I was sitting in.

I do think there's something to be said for the word of mouth they can create. Neighbor comes in and looks, loves the house, tells friend about it, friend calls agent...etc. It's not the most effective way, but I don't think it can be ruled out entirely in those terms. I definitely think they are a great way for new agents to get out there and practice talking about real estate. To get comfortable taking questions, giving their thoughts and knowledge, and just getting used to being in those settings. When you first get your license, you haven't really spoken to people about real estate in the same way as you do a year, five years, or ten years into your career. Having that opportunity to increase your comfort level is pretty valuable.

Margaret -- I think the price is the number one factor at this point in this market. ;-)

Open houses for me are great. They have so many hidden benefits is conducted correctly. However, if they are thrown together by an unmotivated agent who makes it obvious that they would rather not be there then the results can be disasterous with long lasting consequences.

I havent' seen an Open House sign in my market in quite some time. I used to do them for other agents when I first started but I can think of better things to do (blogging) then sitting at an Open House nobody cares about. I mostly do short sales, I wont' do Open Houses for short sale, they sell themselves.

Clint - open houses are hit and miss in our area. Agents that put some effort into publicizing their open house get good attendance. Those that do the usual put out a sign and maybe an ad in the paper don't do very well at all. Granted, they do benefit the realtor more than the seller. I offer my sellers a choice of having an open house or not. Some I actively encourage to hold multiple open houses if needed.

Connective -- I have seen enough evidence to support this claim that I am with you on this.

Andrea and Darrin -- Again, I think it depends greatly on the area. But, I can certainly see the reasons for not doing them.

Mike -- Hey man! I am sure that planning and marketing have a direct impact on success. I think the right person with the right attitude can do very well with them.

They're still popular in my area. I hold some once in awhile.

Lana -- Awesome! I hope they work out for you!

Nobody enjoys doing Open Houses, especially when nobody comes to the door to see your home. If you are in a high traffic area it's a great way to meet new potential clients. Try to select homes that are in high traffic area's. Advertise if you can and place plenty of signs in the neighborhood. It's a great way to build up your mailing list and create clients for the future. Prices have come down enough that buyers are out their looking nowadays. Yes it's hard to sell the house that you are holding open but many Realtors get additional listings and future clients from doing open houses that's why they do them.

Ed Hopper, Realtor....Realty Pros & Associates, Ormond Beach , Fl.

Two weeks ago I had one that brought in 50 people on a $650,000 property. Not bad!

Ed -- That seems to be the consensus for those agents that do them...use it as a networking tool rather than attempting to sell the house the open is being held in...agreed.

Cindy -- WOW!!! That is awesome!!

Open houses can work just like a lot of other systems if you completely buy into them. For me the time it takes to promote an open house, the cost of advertising and the time away from my family on a Sunday is not worth it. I can acheive a higher return on investment doing other activities.

Michael -- i had never realized when I asked this question how polarized everyone is with their responses. :-) I can certainly see your logic especially considering my background with internet lead generation. So, a good part of my buys into that philosophy.

Clint- I have to agree with Sarah- for all three reasons she cited. Overall they are used more to placate sellers than attract buyers who are ready willing and able. They are geat for curiousity seekers and nosey neighbors.

But overall- they are not an income producing activity to the agents who host them. In my area of St. Cloud Florida, they are fo the most part a dead or dying activity except for one franchise-who never gets sale from hosting them.

FLR, Inc -- I can surely see her logic also. So, I can really agree with what she says and think that you are also correct with regards to the income producing ability of an open house. But, the FUTURE income from the networking from it might just offset this issue, in my mind.

Clint --- open houses in our area have cooled off --- a couple of years ago, open houses were a big thing --- with the economy, the agents here have said they consider them a waste of time because there are no buyers. In my opinion, if you have a listing and the seller wants it open, why would you not hold it open.

Even if there are much fewer buyers out there, there are some -- you have a better chance of getting one of those if you hold an open house. I try to get my agent-owners who don't want to hold an Open House, to get some of the newer agent-owners to hold it open.

I really believe in them -- but as far as this market goes, there are not nearly as many being held.

Congrats on your feature.

Mama Liz's Signature

Liz -- A couple years ago, that is very true! In fact, a couple years ago, I used to call agents on cell phones only because they were never in their office going from open to open to open. I think the responses I have gotten on this blog have renewed my interest in them...I will be doing more investigation into this as time goes on. ;-)

Thanks for the congrat's!! Quite pleased. ;-)

Clint, I practice in a very upscale area. I do not do open houses. My homeowners and I are not very comfortable opening the homes to the general public. Plus I find that in this area the Buyers aren't driving around looking for signs; they have their agents scheduling appointments.

Marie -- And that is a prime example of an area where an open house simply wont work. There are a couple of upscale areas here in Missoula that agents know that they will never ever do an open house in....ever. ;-)

I'm new to this Realtor business, and I have been doing Open Houses for my team every other weekend just about since Feb. So far I have not gotten any contracts on the houses I have sat at, and only once did I get some positive leads. The house had been bought the year before and renovated over the year, and it is on a VERY popular street in Milford Delaware, so people noticed big changes. That means they got a little nosey, and decided to go take a look. Well I ended up with a few positive leads, but so far, nothing has turned into a sale. So I am going to go with no, Open Houses don't work for us here in Kent/Sussex County Delaware.

Kayla -- And, considering the amount of time you have spent doing it, I think you have a good basis for making that statement.

I hated open houses for the first several years of my career and avoided them like the plague. I changed my mind a couple of years ago when I had two open houses that gave me great results. One of the open houses, I sold the house and was able to work both sides. In the other one I got a contact that was an investor. I sold him and a friend of his a house. So I had 4 transaction sides from two open houses within just a few months.

Hey Ann, I totally agree with you! We mostly do Open Houses in our area to please our sellers if they even want them done. Usually one Open with no visitors will help them to understand. As a matter of fact, more and more sellers are asking us at listing appointments if we truly think they are worthwhile and they are listening to what we tell them. The only place that Opens seem to work well in our area is at new construction, as another blogger pointed out.

I look at open houses in a couple of different ways. It is a great opportunity to meet buyers - I have had huge success with that and even have developed some strategies for getting the buyers to work with me if they don't already have another realtor. I read somewhere that on average you pick up one buyer for every ten open houses you do, but I consistently find it to be more like three buyers per ten open houses. Not bad return on your time spent, if you ask me! Secondly, it is a great opportunity to showcase the house and marketing that you have done - you are able to tell potential buyers all of the great things about the house because you have their undivided attention. You also get to know people in the neighborhood, who are usually very helpful because they want all houses in their neighborhood to be selling at a good price. They know people who are looking and can send them to your house!!! I love open houses!!!

Hot and cold - just like the weather here in Wisconsin. We do Open Houses but mainly for Seller pacification. As a couple of other commenters suggested, the directional signs seem to bring the most traffic, but they are usually just LOOKIE-LOU'S

Sybil -- Curious...do you think that you were better able to support those opens having had a few years under your belt?? If you were brand new, would you have gotten the same results?

Carole -- New construction seems to be the biggest reason for doing an open house.

Emily -- That is the first time I have heard that stat -- 1 new buyer for every 10 open houses. And, if youre stats exceed that, I think you can consider it a successful endeavor. And I can see why you love them with the reasons you listed. ;-)

Pat -- Hot and Cold. That is exactly the way I feel about them after all of this. ;-)

In 11 years I have never sold a house at an open house. However, I have picked up buyers there!

As a somewhat new agent, I used Open houses quite a bit before the weather in Phoenix turned scorching, but not as much now. I plan to start back up once the weather cools down and hopefully with the experience I have gained this past year, I will be more effective at presentation of my knowledge and of the other homes in the area. I must say, it seems like I get quite a few sign ins, but no real prospects, other than the million dollar client I am still talking too.

Good bye and good riddance, don't let the sign hit you in the 'arse' on the way out this sunday afternoon! Oh, my answer is no. I haven't done them in ??? years and will not plan too.

Erica -- Its all in the networking, right?

Troy -- Yeah, weather has a lot to do with how many people show up...110 degrees would make me stay home. ;-)

Lyn -- LOL! Thanks for that. :-)

Hello all! Thanks for allowing me to share my thoughts! I just received, on Sunday, an e-mail from my broker, encouraging all agents to rush out to their nearest Open House (OH) to achieve success and weath beyond their wildest dreams. The e-mail read like something of the beginning of a new book, so I forgave the embellishment of the great reward and success stuff. In my personal experience, I fall right in-line, lock and step, with all other comments, which is no success. If you wish to be a full-time agent, no continue to be a full-time agent; the OH solutions is to passive, and the risk=reward to slim. The two greatest assets we have are our Time and our Mind, use both of them wisely.

Make it a great day!

Ivan -- Insightful comment...and, despite the radical embelishment from your broker, I think your decision has already been made. ;-)

It is really clear to me that there are two sides to this (much like with any form of marketing) and there really isnt much of a middle ground. People either like it...or hate it. ;-)

It seemed to be a waste of my time although I may have done the wrong homes:)

Stephen -- LOL! At least you can see the humor in that statement. ;-)

Vidoes ARE open houses if done right with real shot at the scene your voice talking like you and I in the room with a coffee. The buyer can tour ten places in a half hour..in their bathrobe and slippers eight states away and then make the trip to see the three they narrowed it down to. Video is huge and on the time frame of the buyer..24/7 not a 2-4 some saturday or sunday afternoon. Newspaper ads in one day paper are shot the next week...videos are full throttle available like a drive thru that never closes.

In the market here open houses are a guarentee on Saturdays and Sundays.... what isn't guarenteed is the results you can expect. Some weeks I have had 40 groups through, and sometimes none. Although it can be hit or miss, there are a few things any agent can do to maximize results.

Actually this is looking like it will make a great post so I will link you to what I wrote about open houses here :)

http://activerain.com/blogsview/1210459/effective-open-houses

Andrew -- I was wondering when someone was going to chime in about video and virtual tours!!! Thank you!! When done right, a video is far more powerful than anyhting...but even a good virtual tour is awesome!! I highly recommend Jeff Turner's company, Real Estate Shows, for this!!

Rochelle -- Awesome! Thank you for the link!

Rochelle -- I liked your post alot!! Im putting in a live link to it here!

http://activerain.com/blogsview/1210459/effective-open-houses

I have had very good experiences with open houses in the past. I think that the 1-2% stat is mostly due to the fact that the agent how to maxamize the potential of the open house. I am amazed at how many I go to visit where the agent doesn't have a sign in sheet out. If you don't get their contact info, how can you follow up? Do these agents expect the buyers to decised to buy right there in the living room?

I did a 2 part blog post on open houses on another site. I will have to find it to re-post on Active Rain.

Clint in our area open houses are alive and well but mostly for picking up buyer prospects and satisfying sellers you are doing something. As an agent you do them if you don't have anything more productive to do with your time.

Clint, In my market approximately 90% of the listings are either Short sales or REOS so not much happening with open houses. What is on the rise though are foreclosure bus tours.

Clint...

Back when we were working in a normal market we would encourage our Sellers to have a garage sale after we put the house on the market. This technique shoots a few birds with one bullet:

The Sellers have the opportunity to go through their stuff and get rid of what they don't need.

The garage sale gets all the neighbors exposed to the home...Just in case they have a friend/relative who may be interested in the house.

Weekend shoppers are more likely to stop by a garage sale than they are an open house.

My job is done here :)

TLW...ROAR!

We beat the national average of 1% by selling 3% of our listings directly from open houses. It may because our odds are stacked as we farm a relatively small area. There has to be a strategy. I, for example, hold open houses mainly to attract neighbors so to gain future listings; some of our agents are looking for buyers (6% of our sales came from open house leads; and that includes the 3% noted above). August is our dead month for open houses....but other than that all is the same.....hit or miss. It is usually 3-4 misses to one hit. Most agents can't take the misses.

Alive and well in seacoast nh area.

Patricia Aulson

Nope, not in Lake Norman NC. When I was in California they were quite popular but I don't even hold open houses here as we are lucky to get one or two attendees. I guess it depends on the area of the country!

I have just started doing open houses again... I had three buyers that were interested in the house (all three had the house on their list and then found out it was open) before finding out about the open... I had two that saw the ad, and two drive-bys... In all, the results were WAY better than just last year...

Personally I have found them to be a waste of time in my area. To see how it is supposed to be, I volunteered to do some for my broker and the Firms top Producer in another area. Still not impressed and think it is not cost effective for the amount of time, granted you can catch up on paperwork or social networking etc... but I would rather do that at home or at the office, at my convenience, not because I am 'stuck some where' for two or three, maybe four hours. Didn't work in the hayday down here, or now.

Plus with high res digital pics and virutual tours, It seems even less necessary

Clint,

In Toronto, the market is "hot" but short on good lsitings. A well-priced home with an open house one weekend will sell with multiple offers on Monday.

Brian

Brian, does your clients allow you to hold the open house prior to brokerloading the listing into MLS to get both sides, and do you charge full commission?

Hi Clint~ I do not usually do open houses unless the seller actually wants it. I always do an open for all of the Realtors though, because they have buyers!

Just last weekend I had an open house, weeks before the open I contacted 15 other agents with listings in the same subdivision and invited them to do an "Edgewater Community Open House". I received one contact from one of the agents, who didn't end up hosting an open anyway. I had 16 people attend

4 people from an ad in the Chicago Tribune, 4 from seeing the "open" on Craigs list, and 4 from signs I had put out, and 3 neighbors, but nevertheless it did not result in a sale.I was able to get information on buyers for the future, so we'll see further down the road.

My last open house did produce a sale for the property , so their not dead yet.

I have noticed an increase in Progressive Brokers Opens in my area here in Tampa.

LIke Brenda, you coordinate with other agents in the subdivision/area.

each one brings a course for realtors to eat.

Appetizers

Main Course

desert

wine & cheese

it is cooperatively promoted and it is coordinated to start at one house and progress to the next and the next. Obviously they have the most luck when the houses are fairly similar in price range

my opinion of it tho, is that more than likely, most of the realtors you get, are there for the food, because they are not making enough money. But I am a glass is half empty kind of guy usually

We don't do them -- they don't work to sell homes. We used to do them from time to time, but the people who do show up are totally unqualified and/ or neighbors - not real buyers. And in this market is it really safe -- its a good way for someone to come in and case the place.

Some successes, some failures. It depends on the location and the amount of advertising.

I have sold homes at open houses, but most often not. Great lead generated.

Great way to meet the neighbors.

I enjoy and do them quite often.

Holding open house can be a hit or a miss in our area. I have held same new construction open week after week and the rusults are across the board.

AUG

My market is Chicago and for me Open Houses do not work. I had not done them for years and then with this challenging market I started doing them again. I sat many where no one showed up and others where I maybe had 2 ro 3 parties come by. Why I thought things would be different is beyond me.

I am no longer doing open houses. As many others have said I can make better use of my time.

I have heard that the suburbs have some luck so it definitely sounds like it varies from market-to-market.

I find open houses can be effective provided they are marketed correctly. A few signs and nothing else brings little to nothing in return.

They have a purpose and so we still do them. When we are not busy showing then we get a extra work done.

Open Houses are dead in the area, but they might be on life support. Not a lot of them anymore, and when they have them they aren't attended much at all.

Effectiveness of Open Houses are like Real Estate

It is local

I've held an open on a new house almost everyday of the week. Many buyers (potential)? many lookers and many (I dont know) I have not used sign in sheets but think it should be mandatory. I mean, this is someones santuary... not a used car lot.

In Homer we just do not have open houses... every once in awhile someone will have one... and I have them as events tied into other events ...like the beach condos during shore bird festival.. but that is PR and nothing else... the sellers like them...unitl they dont produce...

Jean-Paul -- Please do post that blog here! Id be very interested in reading it!

Gary -- Yeah, i think that happens in most areas, Gary.

Bryant -- Foreclosure bus tours......love that concept and was very intrigued when I saw the first one many months ago.

TLW -- MUAH darling! Always love seeing your whip on my blog. ;-) That is one devious idea!! Very nice!!

Tim -- It is true that most agents cant take the misses...but 1 in 5 is a great ratio! That is far higher than anything I have read so far. ;-)

Patricia -- Awesome!

Diane -- Location is a huge reason as to why they do or dont work. It seems they are far more popular in densly populated areas.

Lane -- Do you think that response was in part due to the fact that you were already working with the buyers?? Or, because of the soon-to-die $8K tax credit interest? Any ideas?

Daniel -- Again, I am a huge proponent of the virtual tour!! I completely agree with you on that subject!

Brian -- That is awesome!!! Export some of that to us in the states, would ya?

Vicki -- Broker opens are great!! What better way to expose your listings to a group of people that can help you!

Brenda -- It sounds like you were doing all of the right things, though. And, with that effort, you did get a good return on your investment. Nice work!

Daniel -- OMG, that is a brilliant idea!!! What a great way to get a bunch of agents to view a pile of listings...and get fed in the process. That is thinking outside the box, as it were. Very "progressive" idea!!

Bob & Carolin -- Yup, I can see that logic.

Linda -- If you are ok with the concept that you are laying a foundation for future activities, then by all means, do it. If you think youre going to sell the home right now, you might be disappointed. Good point.

Roland -- What do you think are the determining factors in the rate of success vs failure? Weather? Advertising?

Sandra -- Chicago, huh? I would think that would be one of those areas where safety would be of concern. But, Im in NW Montana...all I see about Chicago is on CNN. ;-)

Christine -- I think the marketing has a HUGE impact on the results. Agreed.

Charles -- Wise use of your time is important.

Carla -- Life support....LOL!

Daniel -- Yup...I think you are dead on accurate.

Tom -- If you think they should be mandatory, then why not use them yourself??

Debra -- I would think that a place like that would be very difficult to do an open at unless you tie it to something else...like you mentioned.

Clint: Up until about last year the open house traffice in Spatanburg, SC was great. In fact, I quit doing Call Time and just did open houses. Since the second quarter of 2008 the traffic has fallen off to just about nothing. We don't even get the I'm just looking for decorating ideas people anymore. I don' know if it is the price of gas or the virtual tour or just the public is scared to buy a house.

Sandy -- I think its a combination of all of those...plus the increased ability to view multiple homes from the comfort of your living room in your Scooby Doo boxers...Thats what I did when I was looking. ;-)

Clint,

I met with my client yesterday who held their listing open on Sunday and wrote a deal up on Monday with a couple who called into their open house.

So yes definitely open houses work.

I haven't had success with open houses. There are safety issues for the agent as well as the home owners if they are still living in the house. We have no control over who comes thru.

Sharon -- Awesome!!

Honeycutt Team -- Yes, I understand the safety issues...and the liability of such an event as well. Thats a big one for not doing them.

I think that open houses are mainly for attracting new buyers. I personally can't stand doing open houses and would probably rather have my teeth pulled.

I did an open this past weekend in a quiet neighborhood. I had one couple come in within two hours. I think it really depends on location and advertising.

Damon -- LOL! I appreciate that kind of humor... ;-)

Ryan -- I would agree 100%

Clint,
I was reading your post and comments- it seems like only a few have stated that Open Houses assist them in selling their present listing. It also seems the ones that said they are willing to do the Open houses are the ones that use it as a networking tool. We do video tours that do the work of a open house except that it does one 24 hours/365-plus gives unlimited exposure to the realtor and seller. It is the Open House of the future.

Knightyme -- I have mentioned video tours before...and think that is the way to go!!

Yes, for several years they have been a waste of time. You sit in a home all afternoon, and maybe, just maybe, a nosey neighbor stops by. Despite the ads, blogs, balloons, signs, etc. buyers just do not turn out like they used to. A large part of this is the fact that they and their agents can easily search for homes that DO meet their requirements from their easy chairs and then set up tours to efficiently see only those homes that interest them. With an open house, the people may like the neighborhood and exterior of the home, but have no idea of the details, prices, restrictions, etc. So even when they do stop by they seldom find what they are looking for. And where do you advertise? I know of almost no buyers who now look in the classifieds for home, or for that matter, agents who use print ads. 99% of my calls now come from all of the internet work I do. I have spent hours building several sites, and now it is paying off. But Open Houses, no way.

Still doing them in seacoast NH

Patricia Aulson/portsmouth nh

Ok I'm back. Just wanted to add a few things. I think the question should be do the open houses work for you - not necessarily in your area. If you asked 10 or more agents near us they would swear the open houses don't work. We say the do and the do - for us. There is only a mere handful of agents that we know around here (if even that) that are doing great with their open houses. As in general - many more are trying to do them around here especially in the last few months it's been crazy! We frequently stop at other agents opens and chat with them and 99% of the time they are just sitting there reading a book or working on the computer complaining nobody showed up.

And yes again - the location is important.

And yes you can sell the house (and others) from an open house. It may not be direct. Once we held an open house and three weeks later somebody calls and says they would like to see the house as their friends who live in the neighborhood were at the open house and said that this house would be perfect for these out of state friends that were moving into the area. They bought the house!

I'll shut up now :) ~Rita

Clint, it depends on where the house is and the price, and they're best for picking up buyers. NAR stat is only 4% of houses sell through an Open House - last time I heard. Most of our sellers are sophisticated and know this and don't want to fool with them.

Sharon

In my experience, OPEN HOUSES are for REALTORS to meet prospective buyers.

I think I mainly do them to appease my sellers, and somehow they need to be given the FACTS that homes RARELY- IF EVER sell as the result of an OPEN HOUSE.

They need to have a CLEAR understanding that we market their homes 24/7 in a far more effective manner through AGENTS, MLS, Signs, and the internet. All PROVEN to sell homes.

AUG

John -- Its an internet-ruled world! :-)

Patricia -- Best of luck on them!!

Rita -- Actually, the ability of the individual agent has a contributing factor...but, so does the weather, the timing, the promotion, etc...so, Yes....I would agree with you.

Sharon -- Thank you for quoting the NAR stat...I was curious what the "official" number really was...

BethAnn -- Excellent analysis of the situation. I completely agree!

AUG

Open houses are not doing to well in our area as it once did. I use to sit on an open house on wensdays and it was a good way to pick up leads and sell the open house.

AUG

I-Net -- I know a good portion of people that are in the same boat.

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