Do Open Houses Work?

David - I believe that open houses serve 3 purposes, but unfortunately for the homeowners, one of them is NOT the likely finding of "the buyer" for their home.  As you pointed out, it is much more likely to come from a cooperating broker, which is why I don't mind holding broker open houses at all.  Here are the 3 purposes that an open house does serve: 

[1]  Keeping homeowners happy by showing them that you're "working"

[2]  Building a database of potential buyers, who also may be sellers

[3]  Business planning and learning.  I bring a notebook and pen and write down ideas for things that I want to do with my business.  I will also bring a self-help book to read during the "slow" times.  Someone asked me recently why I don't bring a laptop, and I told them it was because I didn't want to take the chance of getting it stolen.  The notebook or book can be easily put away as a buyer is walking in.

Thanks for a great post, even though many will disagree with your opinion.

Or... try a virtual, interactive open house!  Benefits everyone... .buyers don't need to waste $3/gallon gas driving around endlessly looking at a record number of properties, they don't need to be made to feel uncomfortable being the only person in the home with a 'hungry' broker, they don't have to worry about young kids......  sellers don't need to leave their home or prepare their home.  They can actually BE home during the open house.... the realtor doesn't have to waste time babysitting a home in the middle of their weekend, they can hold the open house from THEIR house in their underwear.....   People can walk through the home, drive through the neighborhood and MEET the broker, LIVE online....

Check it out this weekend....Sept 23 and 27th 

David,

I too have never had any good come from an open house.....other than picking up a Client or two.  Some may say then it worked for you....yes me, NOT my Seller.

I still have to discuss with the Seller the results of the open house and try not to be happy for myself....sometimes hard to do.  And most ask, Did you get any new client's?    I have to answer yes because I am always honest.

I tell my Seller's I do not do open houses from the start...if they want I will do, however they will most likely get neighbors snooping....lookieloos out for the day.....and discouraged when they do not sell and I get a new client.  I stress if you are priced in the market, then my advertising program will sell your home.

David,

Interesting take.

I noticed an open house the other day in my neighborhood (Grand Lakes) on a Wednesday at lunch time.  I thought it was dang strange.  I popped in to say hello as I have done some inspections for that broker. I was overwhelmed with food offers as no one had been by and the agent had bought all this food for the open house.  Of course you know Grand Lakes as a massive bedroom community that empties out during the day. I think I am the only one around sometimes during the day on my whole block!

As in most things I think it is how it is executed.

Jeffrey

Ion Home Inspection

My experience in Katy, TX is that many buyers from other countries and cultures are not initially working with an agent and the only access they may have to a property is through a Public Open House. While I do not personally hold many Public Open Houses, I do offer them to my clients if they wish as yet another avenue of exposure.

Another advantage to a Public Open House is I advertise the time and date to agents who have previously shown the property. If their buyer would like a second look and wants to linger and view the home at their leisure, then this affords the buyer another opportunity to view the home. This has recently helped sell several of my listings in the Cinco Ranch and Grand Lakes neighborhoods. I simply let the buyer wander around and spend the entire 2 hours, if necessary, to see if the home works for them. I then let the buyer's agent know they visited so that their Realtor can follow up.

www.ChristiBorden.com

I do an open house every Sunday. I believe in word of mouth advertising and I love it when the neighbors come by. Real estate is a numbers game - the more people you come in contact with the more real estate you will sell. You never know where your next buyer or seller is going to come from.

I use the open house time to call FSBO's and expireds.

We get so much business from open houses it's crazy! They work!  You have to get a lot of forces to in your favor at once like signs, advertising, the Internet, and a friendly attitude. 

I do broker opens to meet my colleagues, but they tend to be less productive ironically.

We only ever use www.OpenHouseGenie.com for all our open house advertising. It's a very clean, professional, easy to use site. We pay $10 for an ad that runs seven days.  We use them for broker opens all the time.  You can add photos, virtual tour, link to your personal website and all your contact information is very easy for the open house visitor. I have had a lot open house visitors come to me from this site.  I know it's in San Diego and I talked to the owner who says they're expanding nationally and looking for five other cities.  We used to use the Union Tribune but one small open house ad starts at $132! Insane.  The death of papers is here, which is too bad because I read my religiously with coffee every morning.

We do six signs. That tends to be our magic number. Placed strategically for best exposure but never on private property ~ that's just my rule. I also put it on Craigslist the SECOND before I leave the house to get everything opened. That way it's top of the list...sort of. But I love the Genie site best.

Good luck!

Kimberly Dotseth

broker/owner

Green Box Homes

David -- contrary to your post, open houses are a great way to get new buyers. I sold a house from the open house 2 weeks ago, mulitple offers...always look on the bright side...when i started in this business I held 2 homes open each sunday. I got most of my clients from them, 5 years late, I am the #1 agent in my office for the 2nd year in a row.

Thanks David for your post.  Since my partner and I have not lived very long in the area where we now work, open houses have been a great opportunity for us to meet potential clients.  And yes we have been fortunate to sell a few houses from opens along the way.   Gloria

I am a new broker and I was told by those in my office that open houses don't work. Take a good book was the advice. I did two open houses on the same property. The one I did on the Saturday after Thanksgiving was a flop: two people showed up. I posted ads in two local papers, put an open house sign on the property the Sunday prior to the open house, open house directional signs during the open house and still only got two people. I scheduled another open house on Saturday Jan 9th with the same signs but this time I advertised it in The Real Estate Book for a couple of weeks prior and got the total opposite turnout. I was busy for the whole 2 hours. I think that 25 people in at least 12 groups came through! One couple expressed a lot of interest having seen the home online first. We will see what happens. I don't know if the turnout was the exception and not the rule, but I have another one scheduled for another home at the end of this month advertised the same way. My office was sure surprised at my results! As a new broker, I do believe I can gain a much needed exposure doing open houses and get some buyers in the process. My philosophy is the more eyes that see a property, the better chance for an offer. Just a newbie's thoughts. Thanks for the post everyone.

I agree that open houses do not work. 

Many Realtors hold opens to please the seller.  I think it is better to be honest and let the sellers know that they do not work in this market.  I have actually listed two homes recently and both owners told me that they did not want an open house.  Savvy sellers know that this is old type of marketing.

Great post.