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It's Time For Realtors to Stand Firm on Not Doing Open Houses

Every year I order the results of the National Association of Realtors (NAR) Survey of Home Buyers and Sellers. I am particularly interested in How the Buyer Found His or Her Home in the last year because that determines where my marketing efforts will go to sell the homes that I list. Because the numbers pertaining to open houses are so dismal, it is no longer a category in the survey results. I do understand that open houses were more successful before personal computers and the internet but now, approximately 90 percent of buyers begin their home search on the internet. Thirty six percent will find their home on the internet, another thirty six percent will find their home through the help of a realtor, twelve percent from a yard sign and six percent from a friend, neighbor or a relative. That covers ninety percent. Another five percent, will purchase new construction from a home builder or the builder's agent.

So why do some realtors continue to do open houses? I find that generally two types of realtors continue to do open houses despite the numbers. The first category is the realtor who has not adapted to the internet. He or she refuses to accept that it is here to stay and plans to retire in the next few years, so why bother? The other category is the new and inexperienced realtor. Both categories of realtors have just a few listings and hope to acquire some buyers from the open houses. The reality is that qualified buyers who are looking for a home such as the one listed by the realtor will find it from the top sources listed above and either call the listing agent or have his or her own realtor schedule a showing.

Open houses are also a HUGE security risk for the sellers and the realtor. We all have been notified by our Boards of murders, robberies, rapes, etc. that have occurred at open houses. Let's face it. A realtor has no control over who is coming through the door at an open house. By doing so, you are leaving the door wide open to those who have motives other than buying a house. Besides those who intend to do harm to a realtor, you invite nosy neighbors, people looking for free food or a bathroom, and burglars to see what the seller has inside the home for him to take when no one is home.

At every list appointment that I have, I advise the seller prospects about the facts of open houses. Almost all of them, after being given the facts,, respond with "That's great. We were worried that you would want to do open houses and we are not comfortable with idea." Since I have been doing this in listing appointments, I have never had a seller insist that I do open houses. If I do, I will pass on the listing. A seller who refuses to accept the facts, will probably be difficult when it comes to the many other things that come with selling a home such as pricing, taking care of the home, etc.

I sell approximately 85% of the homes that I list. I am not a "mega" lister. I am interested in the quality of the seller and his or her home they want to sell and its price. When other realtors are doing open houses, I am doing things that are much safer and productive like showing homes to buyers who contact me through the internet or yard signs or just having some me time.

Lee Morof
Associate Broker/Attorney
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call: 248-514-2640

Posted by Lee Morof, Associate Broker/Attorney/CDPE on 12/26/2009 09:19 AM

Comments (222)

Open Houses in the Home Selling Channel

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This post has been included in Michigan Real Estate News Oakland County, MI Real Estate News

222 Comments on It's Time For Realtors to Stand Firm on Not Doing Open Houses

DEC

2009

I think the efficacy of open houses depends a lot on what area you work in, and what kind of sellers you deal with. In my office, there are agents with listings whose owners absolutely INSIST that we hold open house nearly every weekend, because they believe, correctly or not, that this is part of a good advertising campaign. And we always have agents who are willing to hold houses open because they are trolling for interested and qualified buyers.

I do my share of open houses for other agents in my office (my current listings are not the sort for which open houses would work in any event), and I've made some good contacts that way. I've yet to actually consummate a deal with one of these folks, but I continue to stay in contact and expect that I will eventually sell to one or more of them.

The reason why open houses exist is because of the statement made by Sonsie above "In my office, there are agents with listings whose owners absolutely INSIST that we hold open house nearly every weekend, because they believe, correctly or not, that this is part of a good advertising campaign." The problem is that far too many agents don't have the balls to tell a consumer what works and what doesn't for fear that the next agent in will tell them it is a must to do them.

The 2nd reason is that they are a lead generation tool for the agent. OPEN HOUSES rarely sell the home that is held open. In fact NAR states that it is less than 1% of all Real Estate transactions!

Years ago, I used to regularly pick up clients at open houses - and even sold one house from an open house. But nowadays, they are a dud and I do think the security risk is important to bring up with sellers. I may have lost a listing this year because of my refusal to do open houses - the new listing agent is doing them every weekend and the house is . . . still on the market.

Lee,

Ask the sellers to secure all valuables (jewelry, medicine, passports, money) before putting the listing on the market. You're forgetting there's been quite a few cases of Realtor-on-client and customer-on-client crime (items appear missing after a buyer's agent and customer walk through the home).
Work the Open House with a fellow agent. The buddy system is still the best security device for our species.
You can't buy (or sell) what you can't see.

I explain all the issues with my clients that you so adroitly describe, especially the "odds" of meeting the successful buyer through an Open House. I share with my sellers that the Open House helps improve my advertising in the service area and expanding my contact base.

Against that dire background, most clients permit the Open House. They'll take the slim chance it will sell their house AND they want to see their Listing Agent tangibly working.

P.S. I'm doing all the other Internet marketing stuff too. The Open House, if done right and not too often, is not in "replace of" but "addition to."

Open houses, in my opinion, have never been about the seller's but about myself as an agent....what I mean is, I know I probably won't sell my seller's home if I sit an Open House and I explain that to my sellers so they understand that, but if they still insist on me doing an Open House I do so, but on my terms, Open Houses gives me an opportunity to get more buyer clients and contacts which comes in handy in selling houses.

Hi Lee!
We live in a gated community and do open houses. We usuually get a good prospect or two most times. You may be right, but we have enough evidence in our area to keep doing them. They work for us.

Kieran

Lee....my team members and I are marketing 4 subdivisions....we have an open house every sat. and sunday at our adult communities....55+ buyers do not purchase on the first run through....they have to see everything within a 20 mile radius and they have to see it many, many times....they expect to see a furnished model.....they bring their family members, their friends, their enemies and anyone else they can find.....but the open house is a necessity at an active adult community....we have sold many ourselves at our open house events....MANY.....we hold them open from 1 to 3 on sat. and sunday....it's only two hours, so it's not intense for us.....it works for the builder and it makes the buyers show up in a timely fashion.

Lee,

I understand where you are coming from - yet put out a sign and cars stop. There are times when this is the first they even thought about buying a home - it was spontaneous...and there you are.

I will continue to promote open houses in my market, thanks anyway.

Happy New year,

John

Lee, I am glad you mentioned that most sellars do not want their homes "open to the public". I've found this to be true. A qualified, interested buyer will make an appointment to see homes they are interested in.

Linda Metallo, Re/max Impact, Lockport, Il. (Chicago)

I myself have not been very successful with Open Houses. However, it's all about numbers and you never know when your next lead will come from.

I only hold my listings open if they are in an area in which I farm AND if the home is arranged so that I can feel secure. I do tell my Sellers at listing appointments if I don't intend to do open houses and why - they are usually relieved.

Open Houses have there place just like all the other tools we use, but making them effective you have to be consistent and you have to be pro active in attracting buyers to them. For the most part they are a way of picking up a new buyer to work with.

Like everything real estate related, the market is local. My particular niche is new home sales and buyers expect open houses - walking in and seeing the new homes and being greeted by a sales professional that knows the new homes and the area.

I sold 4 houses from one open house - 3 that day and 1 later as well as a referral fee from same family. Everyone's location, expectations and experiences are different. Great post.

Lee...

In our area, we rarely do public open houses because they do not work. We do agent open houses, however, and that seems to offer better results.

Lee,

Thanks for the post. I agree open houses are at the behest of the seller, because they believe there is some value in conducting them. However, the greater value is in the ability to build a database of prospective buyers, many of whom, don't buy the property in which you meet them.

Great points, I too thank my Sellers for the opportunity to do an Open House at their property as their home most likely will not sell from that open house but from a scheduled appointment with a Realtor as serious buyers will want to have the opportunity to view the property without others around and on their time schedule. The open house does give me "my uptime", I much prefer to be infront of people at an open house then on the telephone with them. Should there be downtime I use it to catch up on this particular listing, maybe adding new notes to MLS or our website, thinking on different venues for advertising. I do find that now people are much less likely to do a public open house, they are seeing the value of a scheduled appointment too.

Hi Lee, I agree with many of the responses to your post here. Open houses should be a complimentary marketing tool in addition to all of the online/internet advertising. Although my business partner are heavily involved in online marketing we still understand the importance of one on one, face to face relationships with people. The fallacy of the dot com boom was that in the future EVERYTHING would be done online. Well, that doesn't hold true. People are people and they still like the human/personal touch. Great topic though and best of luck to you.

If we don't hold open houses out fear of what may happen, then we shouldn't knock on doors, say hello to people in the grocery store, or even walk out our front doors to see the world. Any human contact is fraught with risk. If you are going to be in this profession, you need to be prepared to assess your risk and determine if the risk of any particular activity is too high for you.

Now, if only 1% of open houses are sold to someone who comes to an open house, then if you hold 100 open houses, you will probably sell a house. I think it is worth the effort.

I'll bet the number of buyers an agent makes contact with during open houses that actually buy are pretty good. If I get one open house visitor to come to my office for a Buyer Consultation, then I think the results are excellent. Once they come to my office my conversion rate is very high.

In the meantime, I also like open houses because they are a great way to hone your skills with others, while practicing scripts that you can use in various types of situations with other people.

Happy New Year Lee! I agree with several of the posts regarding open houses. In 25 years in the business I have found open houses generally do not sell the home; however I have met new buyers and received other listings from them.

This post makes me feel torn. As often as an open house has been a disappointment over the last year and a half...when people are out looking (if a nice % are finding them "driving around"- 12% seems low) it might be a good plan to have it open. It's altogether possible (likely?) that having discovered a property of interest on the internet, interested buyers drive it before calling anyone (?)- there's a reason for the question mark!

I like them because I have a new homes background, so am comfortable focusing on selling IT- I'm not comfortable cold calling, and others are amazing at it.

I've been to open houses where the agent clearly felt uncommitted- in that case most definitely don't do them- agreed. Great post, as we all recommit or abandon our methods for 2010!

Lee, as a new agent, I have tried my hand at opens houses with zero success. I have tried lower priced listings and higher priced listings with the same results. Before Christmas, I held opens three weeks in a row at different homes with absolutely no traffic. I would much rather spend that time with my kids on a Sunday afternoon, or if I am going to be doing Real Estate activities, would rather be going to door to door or making phone calls. At least that way, I will actually get to talk to someone. I definitley think my resolution for 2010 will be no open houses, or at least a lot fewer.

I have always had mixed feelings about open houses. I advise the sellers that I represent about both benefits and risks of open houses. The key benefit to a seller when their house is held open is that it gives buyers an opportunity to shop the house without their pesky agent breathing down their neck asking if they're "ready to write a contract?" (LOL!!!). You've clearly outlined the risks both to the seller and to the agent holding the house open. I will tell sellers that it is not likely that their house will sell as a result of the open house, but, that I might very well find a buyer who isn't working with an agent. Somewhere else I heard/read that buyers meet sixteen (16) real estate agents before they pick one they want to work with. So, that means that they're coming into contact with fifteen (15) agents prior to that that they didn't select to represent them. Some of those contacts are probably at open houses - maybe alot of them! Open houses really are a "random" event and you never know who is going to walk thru the front door, 'cause it can be everyone from past clients to old friends, from neighbors (nosy or otherwise) or just maybe a prospective buyer!!! You just never not - and - there lies the risk and payoff for holding a seller's home open.

If my sellers don't want an open house, I won't do it. However, I list a lot of vacant properties. I'm about to close on my second transaction this year where the buyer first saw the home during the open house. They definitely CAN work.

Open houses are fairly popular as a tool for picking up new clients in our market. That's because we are a destination for tourists and many homes sold here are second homes. It's not ususual to see out-of-town visitors pop into a few open houses on a Sunday and some of these are folks who are interviewing agents to help them buy. I've sold a few homes this way.

open house is a desperation marketing tactic. Desperate to get a listing, desperate to find a buyer, desperate to keep a listing. Open house is not a viable long term lead solution, it is about pure luck and nothing else. Can you get a buyer or listing from an open house, YES! but even blind squirrels catch nut's every once in a while.

I currently have my first client in 5 years that really wants an open. So I'm doing two. They even sign a release that states I can't in any way watch their things and absolve me from any theft, damage, vandalism, etc of their personal items. This release alone stops most sellers cold and they decide they don't want one. I have my first clients that don't care and still want one.

I love doing open houses, perhaps because no one else does them, so that in and of itself sets me apart. In almost five years, all of my buyers and listings have come from initially doing open houses for those agents who either don't like to do open houses or had too many listings to do open houses on all of them concurrently.

There are several fallacies in your statistics, and as with all polls, you can get the answer you want simply by knowing how to ask the question the right way to lead them to the right answer.

First, it's not unusual that approximately 90 percent of buyers begin their home search on the internet since if you ask the right questions, you'll also find that most of those people first thought about buying or selling a home in the evening. At that time, the only thing open is the Internet.

I have had a few buyers and sellers find me via a friend, neighbor, or relative. Interestingly, that friend, neighbor, or relative found me when they came to my open house, thought the place was great, and recommended it to their buyer friend. They didn't always buy the house originally recommended, though, so in that case I find myself in two categories -- help of a Realtor and from a friend/neighbor/relative.

At least one found me and her home from my yard sign that had "Open House This Sunday" on it, but she didn't buy that one either.

Just because you apparently don't like doing open houses doesn't mean that it's a bad thing for everyone.

I you think that people who contact you through the Internet or yard signs are "much safer," you haven't been paying attention to the news in the last decade.

I'm of the Warren Buffet mold: "If everything is doing something, do something else." That can be reworded slightly: "If everyone isn't doing something, do it."

Happy Holidays!

I agree that open houses alone do not sell the home, but I think they can be an important tool that shouldn't be overlooked.

If I market the open house in the area prior, I usually get very good traffic through. Not only have I sold homes through this method, I've also picked up TONS of buyers who have later bought homes. I also do thorough internet marketing, and also thoroughly advertise the open houses... You don't have to do one every weekend for every property, but it is true-- The more exposure the property gets, the better. The more people you can get to actually view the property in person (instead of just skim through on the internet), the more likely they will be to buy it. Why limit the people through or your marketing in any way? It may not be the reason they buy the property, but it may just be the reason they come back for a second look!

To Michael Russell (with all due respect) I would say, "What if it's a GREAT buy; a person walking in would be LUCKY to have it, and the $ works?"... believe in the house that you are open housing for a seller needing a buyer, or DON'T DO IT- the right price/condition dictates "open house" worthy.

Potential, legitimate buyers will be turned off by a "get me a lead" person in a heartbeat- spare us all the negative perception of real estate agents if you are not 100% decided on the reality that what you're representing is buyer worthy (not Michael, but anyone seeking leads over a sold listing)...

I don't understand why agents do open houses. It's like they don't have family or anything else to do on a Sunday afternoon. They're a huge waste of time for selling that particular house, and if you're using it to pick up buyers, think again because buyers are being marketed to in a smarter way, via online.

It depends where that house is located as to whether it's a good candidate for an open house. For example, I never hold open houses on any of my listings in Elk Grove or Natomas. But when I list homes in Land Park or East Sacramento, you can BET I hold them open. Why? Because they SELL at open houses. Buyers just out driving around on a Sunday afternoon spot the open house sign, stop and buy it. Some homes in Land Park get more than 50 visitors on a Sunday afternoon.

Maybe it's California madness, but I don't believe it is fair to paint all open houses with the same broad brush. Whether to hold a home open is local.

I love open houses and have been pretty successful at them. Having said that, it also depends on where the house is located. The better the location, the better the clientele who will come looking.

Lee, Much of my business in 2009 has come as a result of open houses. I really believe the skill set of the agent and the way they interact with the public has a lot to do with the success or lack thereof. We are still working good leads that have come from our open activity last year and have one listing in escrow now that came as a direct result of my holding it open.

Lee,

I agree that I do not like Open Houses. They are a pain and very boring. I did not do any last year but did the year before for a builder. I sold 2 $1,000,000+ homes from the Open Houses.

Whether you like them or not here are areas where they do work. Plus some customers require them.

Hi, Lee -- I have to say open houses have been successful for me in both selling the house being held open and also securing new buyers. Most of my business comes from the internet, so as others have said, opens (for me) are done in addition to the internet marketing, not in place of. And I agree that the location of the home is a consideration when deciding if an open house would be beneficial. It's something I discuss with each of my sellers, and we decide together if and when they'll be done. Great discussion going here!!

I very rarely do them, but when I do I never go alone. I did just one this year, only 2 viewers and neither were anything more than curious. I do know that they work for some agents but only in attracting buyer leads.

I have to agree with you Lee. The real estate industry has evolved, as well as prospective buyers. I have never closed any transactions from open houses, and have sat in empty houses by myself for hours at end. I remember one I held for a builder, he came in the day before and shut off the heat and the only thing I caught was a cold. Tour of Homes has helped because there are several buyers together, hence less risk, and I do not work on Sundays. If a buyer is that interested in the house, we have a call / text/ email capture system that allows us to follow up. When we list a home to market and sell, we have three different signs on the lawn and sign riders. New days, new tools.

Lee,

In my area, the only time we can put up directional signs is from Friday afternoon until Monday afternoon, and ONLY if it's advertising an open house. So, that is one reason to do at least one, in my opinion. It highlights the location of the house and may encourage some drive-bys that may not otherwise have occured.

I do them if Sellers still want one (after my explanation of all the negatives) - but only for 1 1/2 hours.

Sue

I agree with you Lee. We all know it's more of an attempt to secure buyer clients on the firm's part. Unfortunately I think many firms still tout it as an essential component to their marketing plan. Assume many in this category are not sharing the latest stats. If they were, you have to believe most sellers would say "no thanks" to open houses.

Hi Lee~ I am not too keen on open houses. I have done them and have gained clients from them, but they never have led to a sale of the house that was open.

Sigh another one of this posts where I feel need to defend why we do open houses and are successful with them. It is a tool in your arsenal, whether you decide to use it or something else is up to you. Some people don't feel comfortable doing open houses that is fine. We do them - not in every single house (location, situation etc.) but they absolutely work for us - the sellers typically request them and have seen us work other open houses. We have about 10% rate of selling that actual house from an open house. Not too bad. Each year we sell at least one house from the open. Now we have system and it takes a lot of work, but you do what is working. We are all over the internet also, and some of the buyers - more and more - are saying they saw the posting on the internet. We have a large number of buyers in this area who are specifically just driving around rather than committing to an agent via internet or otherwise. When they see something they like, they stop by the open house...

It works for us and our sellers. ~Rita

So glad to know that someone else feels the same way about open houses! Whew! They are rather unsafe, too, aside from just being annoying (in my opinion). As a "young" Realtor, I know and believe that the internet is where consumers often begin their home search, and I am quite willing to focus on internet marketing rather than open houses any day!

I agree with the notion that very few homes are ever sold at or as a result of an open house. However there are some situations that warrant open houses. The seller insists, there are some sellers who feel that you are being paid a lot of money and want to make sure you are earning it, or the situation where the home is difficult to show under normal conditions. (i.e. No Lockbox and By Appointment Only). I explain the low percentages with open homes and many clients are okay with no open houses but there are some who absolutely demand them. On the other side of the coin, I have secured listings and other buyer sales as a result of open houses. So my message is that if you are obliged to perform them, you might as well make the best of them.

It's true, open houses are wastes of time. I still do them on occasion, but not often. I get about one buyer client a month when I do one per week, so not to great. I do them in the middle of the week and make the house my portable office with my net card!

Lee,

I actually found some buyers for my listing at an open house. I was putting out a directional sign for my open house on the main road into the subdivision. I purposely put it across the street from another open house to draw in more prospects. While I was putting out the sign a couple came out of that open house and I told them about my open house. They loved the house, got a loan and bought it. I don't have success stories like that all the time, but I alos have picked up buyers from open houses also.

I agree ~ I hate I hate open houses, but they work in some instances. It you post it far enogh in advance in all Internet avenues. The down side you may get the strange people.

Lee, Regarding open houses I believe, "it depends". It's far easier to find success with open houses in a sellers market. Whether you consider success procuring a sale or just picking up potential clients.

Steve

Lee, great post! I've only sold one home at a open house, but the buyers had been watching it online for weeks. I agree that it is a huge security risk -- both for the seller's possessions and the realtor's safety. Usually the open houses are a big dud -- for example, last month, about 30 realtors teamed together to hold a 40 open houses in a small Atlanta neighborhood and only about THREE people came through my listing. Most of the other agents only had one or two. It was sad.

Open Houses are like dinosaurs, I did lots of then in 1985 but in 2009/2010 it's a brand new world. I haven't had any luck or success with them. Some sellers do insist and I have done them just to please the seller but in this day and age they just do not work.

This is the second post I've come across today that has mentioned the security of real estate agents. We don't see many open houses in my area. As you stated, there are better ways to find business.

I am so with you on this. I have not done a single open house since I got my real estate license.

Wow! When I blogged this morning, I had no idea it would be Featured in Active Rain or get more than fifty responses. I agree that in New Construction, it is a necessity. I also understand that in some markets open houses may be more successful than others. What I don't agree with is allowing sellers to tell us how to run our business and "prove" to them that we are working hard for them. Selling a home today is not an easy task. That's why only 7% percent of for sale by owner sellers are able to sell their home to someone they do not already know and they end up selling, on average, for 32% less than if they hired a qualified agent.

I've done open houses that were great places to meet buyers... and also some that were great opportunities to catch up on computer stuff...

I'll keep doing them for certain properties. Just when I think they are pointless, I'll get a huge crowd.

I sold my listing on an open house this past year. The buyers had already been through with their agent a week before and stopped back during the open house with some family and their agent. I pointed out things in the house they had not seen or had not even thought about and they were sold! I had an offer on the house the following day. Now, this doesn't happen often, but in my area, most sellers want them. Some demand them. BTW, I bought MY house on an open house many years ago!

Open Houses are not a total waste of time. Depending on the area you work, so areas still have fruitful open houses.

Open houses are the best source of business for me. I have many options on how to promote and develop business. Hands down open house are the best for me...and I do some big business.

I actually have done some statistics on the people that have gone through open houses that I have worked. You may be surprised to know, that a staggering 96% of the people purchased homes within 6 months of the open house. That is a lot of business that just slipped through my fingers. I now work open houses, get contact info, follow-up and actively pursue these leads. That is just too much business to let slip through my fingers.

I think you have made some valid points. Each agent and seller can make the best decision for themselves based on the facts.

Here they are almost always a bust. One visitor at the most, and he is usually a neighbor just nosing around. Even the agents tours are falling out of favor. For those I only visit those homes of agents (in my office or outside it) that I see visiting my homes on tour. I do always serve a nice lunch, even for my little $40,000 mobile homes just as much for the $300,000 homes. That does help.

But still, it is the same loyal little group that shows up. I would guess, less than 5% of the total agents in our area. Of course the rest put their homes on tour then gripe when no one shows up. But those agents never come to the listings of the rest of us who do go on tour. So, unless we see that their listing may be of interest to a particular client, why reward them for being lazy. We prioritize and reward those agents who return the favor.

DEC

2009

I will do whatever it takes to make my seller happy. I am WELL adapted to social networking and online marketing. I was way ahead of the curve, over a decade ago. And I have sold obtained sales directly from open houses! Is it the norm? No, it's not. But I work FOR my clients. And we cannot predict from which avenue a buyer will come.

Perhaps this is another example of hyper-local real estate. In our area, open houses are not common, but they CAN be effective. And until the level of effectiveness is at zero, I'll do open houses for my sellers.... not to mention the leads I get from a couple of hours spent catching up on paperwork, writing a blog, or whatever productive way I can find to spend my time while sitting at an open house.

John, I thought the purpose of agents' open house tours was to familiarize yourself with the local housing inventory, not reward agents who have come through your homes when they are on tour.

In my area, we have a weekly brokers' caravan right after the MLS meeting, and while it is not always heavily attended, most of us do go most of the time. I particularly want to see anything I think I might have a buyer for, and anything else that just plain sounds interesting. I keep notes on the homes I tour, so I can talk intelligently about them if I get a call.

I have sold homes by doing an open house. It depends on the location and condition of the home, if I do an open house or not. Sometimes by going back to the old real estate basics will jump start our business when we need it.

We agree with you -- there are better ways to spend time than open houses that are a lot lot safer.

When I was in California, 20+ groups of people would come through my open houses. In Reno, I am lucky to get 2. Different areas, different results.

All those in favour of abandoning a great Buyer lead generator follow Lee over the cliff....CHARGE! Bully Buly!

There are pros and cons to Open Houses. But the NAR survey...at least to the extent quoted, sheds little light on the issue.

What fraction of buyers who found their house through an agent actually found the agent at an open house?

You can find buyers through the internet in a variety of ways. You can find buyers from your SOI. But you can also find buyers....that are out after it...by doing an open house....well.

There is no point in holding the same home open over and over.

The calendar/weather have a lot to do with the amount of traffic generated.

I prefer Saturdays to Sundays - fewer lookers, more serious buyers.

The main reason I do a open is because I want to farm that area and meet potential sellers next door and down the street.

Open houses are the only to put up signs in our area, which is a plus, and I've gotten good solid, repeat clients from open houses, both buyers and sellers. I think it depends a lot on the house - both the location and the curb appeal. Wouldn't write them off yet!

Best regards, Gretchen

Our philosophy is pretty simple- if you don't do them, they don't work.

Open house still work. This last year I have sol;d homes to people coming to one of my open houses.

I beleive there is a time to do open houses...also, it's obviously added value for the seller.

Some of my best clients came from open houses...atleast 1.4 million worth in 2009. I do however see the reasons why some won't do them..but not me...ill do them for my clients, but only 2 per month...max.

Just throwing a sign in the yard and sitting in the living room probably won't get you much action. But if you do open houses with a little planning, on the right day and in the right neighborhood.... you might attract some sellers! One agent in our office literally captured a neighborhood this year by doing open houses. He got buyers and sellers and then buyers again. He is dominating that hood.

I think your view is a bit narrow and I think the survey results are probably shewed. Consider how many prospects are met at open houses who then respond that the home they bought was due to the Realtor. Shouldn't the question asked be how did you meet the agent who sold you your home? This were I would want to be investing time and money. Personally, about 1/3 of my buyers came from open houses. Don't do them, leaves them for me!

I've only done a few open houses. In my rural area you only do them to appease the Seller. It' usually ends up to be a lot of work to feed a bunch of agents that don't have a buyer for your home anyway. I can see it being more effective in more urban, populated areas, but I tell my Sellers up-front that I find it to be a huge waste of time and expense.

Lee,

I appreciate your comments about having open houses for your clients. I agree with the statistics; but, as noted in other comments, real estate is about location, location, location and that goes for open houses also. It depends on your market and I don't think a blanket no is the best answer.

Thank you again for sharing your thoughts,

Dennis

Hi Lee,

"Me" time is good..however, Open Houses can be productive. Although I strongly believe in the internet, and have received many wonderful internet leads from my numerous websites, I also believe in Open Houses, particularly for a new listing. Just this past month I sold 2 of my listings at 2 separate Open Houses I hosted. Relying on the internet alone is missing a valuable resource for meeting and greeting new buyers and potential new sellers as well.

Happy Holidays. Here's to an extraordinary 2010 for all of us!

Susan Laskin

I know a realtor who sells all his listings himself. He gets both sides. This realtor could sell a broken down VW to a Cadillac buyer.

It depends on the area and the realtor.

The only reason to hold an open house in most of our areas is to meet the neighbors and to get caught up on your paper work.

It is time that 99% of our realtors give up the open house idea. They don't work here

I have met up to 90% of my buyers by doing open houses. I'm not about to stop doing them with that kind of success.

Lee,

Great info, but the Open House has never been about the seller it is about me picking up buyers. I explain this to my sellers when I list their home. I tell them that I will do open houses, but 90% of the time the person who comes through the open house will not purchase their home. I am willing to wait for the 10% are they? I also explain that this is a tool I use to help new agents get buyers.

My sellers understand and we hold open houses. It is also a great 2 hours to blog or call past clients if no one comes to the open house.

Lee ,

Why would anyone spend all those years in Law school , Pass the Bar Exam and sell Real Estate ?

Although , I never saw F.Lee Baily at an Open House either .

Tony Emanueli

Lee,

Open Houses are a long shot. So are many marketing venues.

I think one should "stand firm" in ones' own practice, and let others perform as they deem fit.

Give me a great vacant listing, and I will hold it open repeatedly.

I am not a big fan of Opens myself, unless they are in the beach community part of our town. The last Open I did was at a two bedroom log home that was two miles up a mostly dirt road. I put out seven directional signs and, as expected (and as I told the seller), didn't have a soul. Several reasons for no traffic: a log home in this area is a specialty home, there were only two bedrooms, and if you aren't from these parts, you get the distinct feeling when driving to the home that you are entering "Deliverance country", which the out of staters definitely don't like. (Don't get me wrong I loved the place and the location - for myself!) The seller was insistent, so I caved. I'm going to take some of the ideas from this post/comments for sure - I will now be requiring that sellers sign a release (good idea!) and will only do 1.5 hour Opens only IF I feel that the home is in an area that will get traffic. Otherwise, I will pass on the listing. It is just one more way to disappoint a seller and in this economy, we don't need any help there!

Here's a thought: How about we invite the seller(s) to stay home during their Open so that they can see for themselves what really goes on?! (Generally, nothing!)

It depends on the price of the home and the area and amount of traffic it will receive. If it's a low priced home with not a lot of great features and tucked way inside a subdivision, the open house is point less. However, if you have a home in a high traffic community with a lot of great features it's best to hold an open house and also a broker open. Bake some cookies, get some balloons and get a sign in sheet you never know you just might pick up a buyer for another house. For Christ sake meeting people and networking isn't that why we got in this business?

super message, your points are very well taken and in our area at least, right on the money.

In our area there is a particular "large regional brand" that advertises the heck out of open houses, and makes the new agents host them.

We all know that in this area open houses don't sell the open house but they do get the names of warm bodies potential buyers, and give the appearance to a potential seller that this realtor is really working hard to sell homes.

the end result is that the "large regional brand" lists a lot of houses, usually above the market value, and winds up with "price reduced" after "price reduced".

Lee; Thanks for pointing out the risks involved. It is true these are most often not considered. That being said I will stand up for the occassional open house especially when the home is vacant. This lets the neighbors know of the internal features so they can refer a friend or family member who is seeking a home in the area. Maybe we should call it a Block Open House or Choose your Neighbor Open House.

I wrote this article a long time ago. Our Board(s) regularly post notifications of events and "happenings" that occur, along with local news reports. There's a really long list of ugly situations including one REALTOR who had her throat slashed while showing houses, others were murdered.

I recently moved to Burlington ON and noted immediately that there are four to six sets, and often more in certain high traffic locations, of real estate open house signs on most streets/intersections every weekend. In my prior location there were hardly any most weekends in recent years. I have also noted that the local homeowners and buyers do not seem to use the internet as much as would-be clients in the Brampton area do. There are 30-40 pages of house for sale ads in the Burlington paper every week in Burlington. In Brampton there often were only a few pages of real estate ads for the last several years, not like volumes in prior years. In Burlington there is a very large geriatric population. Maybe that's why. I have to figure out what works.

I acquired a lot of real estate business in Brampton on line, and I was one of the first to have a web site back in 1998. I tracked the traffic. Here the same method doesn't seem to work. So it has been a challenge to figure out a new market and what appeals to the public.

So I'm guessing the topic is of more or less usefulness dependent upon the city or region where you live and practice real estate.

However, for those who might be interested, here is the article:

What You May not Know about Open Houses
(and why you should know this information)

http://www.carolyne.com/openhouse.html

From the variety of responses here, you've proved once again that all real estate is local.

Personally, I agree with you. We had a realtor in our area, about 1 mile away from me, attacked and raped at a new home site. The security issue should be the most important thing an agent stresses, for her clients and herself.

As new agents we were supposed to hold open houses for the big agents. I never had even one person attend those open houses, even after cold calling the neighborhood the week before and personally invited the neighbors.

Plus, in our area, we are not allowed to put up Open House signs of our own. Each home is allowed 2 open houses per year, and the only sign we are allowed is the town regulated small generic Open house sign, with no address on it.

In our area, Open Houses are a waste of time, done only to make the seller happy.

Open Houses are very psychological to the sellers. It shows that their agent is working hard, giving up there Sundays for them, but they also think that the agent is doing it for themselves, because sellers don't know that they don't work. It's a pain for the the seller because they are not comfortable leaving their home to strangers, so Nobody wins. Include a Virtual Open House in your marketing, build it up as the New way of holding Open Houses to the sellers and they are very happy to see that 20 or 30 buyers a week have looked at their home. It's available, agents just have to use it.

Great post. I too advise my sellers of the risks of open houses not to mention the fact that it is proven the open house will not sell their home. Almost all agree open houses are not a good idea. I tend to work with a lot of law enforcment, they fully understand the risk and refuse to allow open houses. If they are not comfortable with it the rest of sellers should think twice.

The value of an open house depends, in part, on the local market. In the greater Crofton area, open house is rarely an effective marketing tool. In other nearby areas (some areas of D.C., Arlington VA, Historic Annapolis) open house is very productive. It's a decision that individual agents have to make based on their own market conditions.

As you can see from the comments, it should be clear that open houses are not for everyone, but they do work in some places. We don't particularly like them, but if our sellers insist on them, we do them. After all, we work for them and there are sellers who demand open houses, regardless of what you tell them about the Internet and percentages and safety and time managment and all the rest. Bottom line is, if they work for you or your seller asks for them, do them. If they don't work or your seller could care less about them, don't do them.

I lost my enthusiasm to do public open houses when in 1997, as I was moving from the city (Manhattan) to the Hamptons I heard about a poor soul in one of the bedroom communities of the city who held a public open house on a weekend; she had a number of people at the same time and the house was huge. As she was locking up the house, a perpetrator, who had been hiding in the front closet, attack her with a knife, robbed her and the house and left her to bleed to death there.

Now, I have second thoughts about public open houses and will only do one if I have a support team--one or two other brokers with me. In fact, I don't think I ever got a customer from doing a public open house. While doing real estate in Manhattan, in the 90's, however, I sold several apartments that way---but in today's world the open house is less and less important.

Thanks for bring up the topic---I thought I was alone in my assessment......

Lee,

I totally agree with you. I created a "Hold Harmless", Waiver, whatever you wish to call it years ago. It explains in details all that has to take place in the home prior to my holding an Open House. Removal of all weapons, medications, fine objects that the owner would regret if stolen or broken, furniture that might be broken an create a fall if someone should rest in that chair and fall. The list is extensive. I explain to the owner they may wish to check with their insurance agent to assure they are fully covered under their policy for such liability coverage.

It is generally the first time the owner has ever considered the fact that the people coming into their home have any purpose other than viewing/buying a home. Needless to say, since I and my company have refused to take on this responsibility not any of my clients have wanted to hold an open house. Especially since I explain all what you have explained in detail about the data of how Buyers actually purchase their homes. The BEST thing that would likely happen, I MIGHT obtain a new client. If we are fortunate, the worst is I will waste an entire afternoon and we will not attract a thief. I also have extensive internet exposure and educate my clients up front on its benefits. I think that is the key. With the Marketing combination provided, most homes have sufficient traffic that open house traffic is not needed.

Thanks for your article and sharing your insight! Real estate is local, but Realtors need to get out and meet the people, instead of sitting behind their computer in their office and waiting for the phone to ring! Open Houses work, if you work them! Be unique! I have sold several homes at Open houses. Buyers are online, but they also drive around to Opens!

Have a great New Year!

I mostly agree with you however I live in a small town, Lake Havasu City, Arizona. I think I would say to hold open houses depends on circumstances like everything else in life. I do hold open houses in first quarter each year. That is the ONLY time I do them. Our population increases by about 35% in 1st quarter with snowbirds. While many of them come prepared and have made contact with a Realtor every Realtor I know sells 3-4 houses each year during this 1st quarter by random things like open houses, working the service desk, etc. A large percentage of these snowbirds don't like to be pinned down and would rather drive around and do things in their own time. I have sold a home myself at my open house during this one quarter but more than that I gets a few extra leads and new clients. I do advertise my open houses on the Internet though so my hope is that the client has pre-qualified him/herself and this is a house that might workk for them.

I do agree however that we have to train our clients. They want open houses because they see them over town. The bottom line is that I don't do them for the client, I actually do them for me as I don't really expect to sell the house but to interact with a prospect who might buy something else from me.

I take my laptop and I work or read a book I ahve been putting off so I never feel that I am wasting time. I am having one today so I will let you know how it goes.

When I had an open house in where I live, 55+ community, hardly anyone showed, due to the gated and guard. So I don't do open house anymore. But, my very first client was came from an open house outside the community. Great post.

I run a very progressive firm of 45 agents in Austin Texas who almost never hold open houses. Our agents produce nearly 3 times on average what the typical Keller Williams (known for open houses) agent produces. And, they have their weekends off in the rare even that they aren't out with clients. Instead of sitting around hoping that a real buyer shows up, our agents focus on internet lead generation and prospecting several hours per day. They are extremely loyal, earning a better living and happier in their profession than most agents who waste their and risk their personal security sitting in an open house.

As a brokerage owner, I feel much better knowing that we don't have 45 agents hanging out every Sunday like sitting ducks.

I think the most important thing is that agents do something to create leads. If all they can do is hold open houses, they might be better suited for retail sales.

Happy new year!

I'm with you Lee. For years we've explained to Sellers that Open Houses are for the benefit of the Realtor looking for Buyers to work with them.

Lee,

Good morning. I once did an Open House at the insisted request of a Seller. ...and when they returned home they asked how it went. I kindly replied that had anyone shown up, they would have enjoyed viewing a home they likely could not afford.

Qualified Clients Buy Homes !

Happy Holidays,

Steven Zimmerman Realtor ABR GRI / Prudential Best Realty / GULF HARBORS FL 34652 http://retaggr.com/page/StevenZimmerman

I am a New York City Real Estate broker who has recently focused my of my efforts of being a buyers's broker.

From my new prospective I find open houses extremely valuable and almost indespensible despite the current views expressed in this article. Also even in our former sellers market and as a sellers broker I have sold at least 10 properties through open houses.

Some of it has to do with scheduling of course. And maybe it also in my case has to do with living in the big city. Plain and simple--most people work during the week 9-5, 8-6, and quite common in this recession alot of people only work 1/2 day ie. 12-14 hours or more. Weekend open houses are still the best way to schedule the most amount of people into the most convenient times for buyers and sellers alike.

Also let's not forget that many times beginning and even 2nd & 3rd timers buyers do not really know what they want until they actually see in it and stand in it and feel the space. And it is only fair before we spend all of their money (perhaps the biggest investment in most people's life) that they can actually go and see and be in and touch etc. a wide variety of properties.

How many times have we as brokers sold a property to a buyer that is different or even nothing like the initial idea that the buyer(s) say that he/she/it/they say they wanted.

Wake up fellow brokers--WE ARE NOW IN A BUYER'S MARKET"> Further "MONEY" in this market as in previous markets "STILL DOES NOT GROW TREES".

And here's another platitude for you that still holds rank--"IF IT WAS EASY EVERYBODY WOULD BE DOING IT"--why for example did they increase the New York Sales Person Licence requirements from 45 to 75 hours.

Sorry folks, Open Houses (at least in my market) are a Necessity for both buyers and sellers. Oft they may seem like a waste of time--I've had my share of open houses where nobody shows up. (so lower the darn price or unclutter the place or something!!)

And although I'm afraid to say it but I must --"to make the dime, we still need to put in the time"--DON'T KILL THE OPEN HOUSE!!!"

I have spoken.

Harvey Heit, MBA & Licensed Real Estate Broker, Brooklyn, New York

I can't believe you wrote a blog about this. Who are you to start such an idiotic trend just because you're lazy? Open houses are fundamental to real estate success.

Another example of why Realtors have such a bad reputation and why Google will take over our business if we don't wake up and actually start working.

I sold 3 homes and picked up 3 buyers this year through open houses. I wish I could stand with you but I have seen benefits from them.

Laura (#67) has an interesting point.

Traditional open houses are , ad in the paper, sign on the lawn, sit and wait.

perhaps if it were part of a local farming plan,,?

Gonna give it a try.

Thanks

I agree with many of the posts that say "if it's not working for you, don't do it". In my market, there are lots of open houses going on almost every Sunday, and even though I market on the internet and the public reads about the properties, they still love coming to an open house. And yes, I have sold houses from an open house. And yes, if you feel uncomfortable talking to people face to face, stay behind the screen.

When we are the listing agent we work for the seller. They are our customer and client.

We could turn down the listing if we don't want to do what the client wants. But I don't see that happenting.

Here is a thought to remember.

"The customer is not always right, but they are always the customer."

In our area open houses still have some value. Even if it just satifies the customer, that is still value.

You could give your open houses to new agents. That's how I got my first leads,

jmo

We do open houses for agents, not for the public. It's a great way to expose the house to the brokerage community.

disregarding that they rarely sell the home in question, there are a dozen good reasons to hold one...even if it just gets the seller to give the place a good cleaning. i've picked up more buyers at open houses than any other practice.

the sellers like 'em, the neighbors like 'em, i like 'em to meet the neighbors (who always get a personal invitation). the buyers who walk through will take and read anything you hand them...you can all wait until they read your website or stumble onto your blog, i'll take a warm body anyday. the ones who get in their car are the serious ones.

as far as personal safety, i am not concerned on a personal level but it is a good idea to tag team it if you're females and getting the true valuables out goes without saying.

Broker Opens/caravans...without exception.

I love those double commissions;
I use the 2 hours very productively to keep the home in tip-top shape, inside and outside;
My Broker puts the OHs on top of his weekly AD;
Neighborhoods see all the nice things (above and beyond) that I do to sell a property;
I establish a "beach-head" for future business in nice communities;
I learn a lot about what the consumers think about "everything under the sun";
I really enjoy the people of all walks of life; and
For 2 hours I think about nothing but Real Estate and doing my job BETTER!

Thanks, Lee, for bringing forth comments from everywhere!!! Jim-In-Paradise

Hello Lee:

Perhaps the premise is wrong. NAR statistics are national in scope and most real estate transactions are very "local" in nature. Making local decisions based on national information may lead to the wrong conclusions for your market. Do what's right for your market, your clients, and your own business plan and you can't go wrong. logo

. . . ditto !!!

I can`t do enough Bank Owned Open houses, Laptop & Lunch, it is like I have an office in every neighborhood.

I hope it never ends.

Does an Open House sell a traditional resdale....Not really. A Broker Open Yes, regular weekend to weekend no.

I like doing open house for the quite time. I get a lot of paperwork done also. Not really, we haven't done open house for a couple of years and have never had an owner complain that we were not doing enough. Some things will never change. As long as homebuilders have "open houses" I think the realtors will continue to make them part of their marketing plan whern a particular property needs just a little more exposure than others. A well advertised open house can and will, bring interested buyers who have seen it online and want the up close and personal view.

Lee,

One of the things I've always watched over the last 35 years in all kinds of business is the mis-interpretation of statistics to prove a pre-determined point. You seem to be doing some conclusion jumping - in other words I'm not seeing a complete bridge from your data to your conclusion.

With due respect, I think you have a business style that works well for you and are espousing that we should all take a stand to do it your way - yet you don't really have a logical case to prove it.

For example, citing the oft-quoted stat that 90% of home buyers begin their search on the Internet. You jump from 90% directly to Internet. What you're skipping over is a really big word - BEGIN.

The stat is most used to demonstrate why Realtors and home sellers need to embrace the Internet in all its forms as the place where the buyers first look.

To take that data point and conclude that those same folks who start on the Internet do not follow up their search by going to open houses, is simply not supported. First look - does not mean last look. It's the last look that really matters, isn't it?

Then let's look at the 36% about whom you quote find their home with the help of a Realtor. How exactly did they find that Realtor? Where in your data does it prove that a certain percentage didn't find him/her at an open house?

I think I fall into your second group, newer agents who don't have a ton of listings. Been doing this for about 3 years. I do open houses twice a month and I can point to 7 transactions over all that are the result of meeting buyers at open houses -all at other Realtor's listings. I also just took a listing from one of those buyers who is now selling - and she has recently given me two referrals for other buyers that I am working with.

The third point where I think you are off is the "huge" risk of holding open houses. We've all heard true stories about Realtors who are attacked - but you present nothing to demonstrate that it primarily happens at Open Houses. I don't have any data on this either but personally I think it's a bigger risk to walk through an abandoned REO property with a stranger. There was a case last summer where a Realtor was attacked with a hammer right in the lobby of her Real Estate office - in front of 4 other agents.

Last but not least is your conclusion - in your definition of "type 1" that if you hold open houses you don't believe in the Internet. "Openhousing" and "Interneting" are absolutely not mutually exclusive - in fact they go great together.

If the open house is "dead" it's a fabulous time to write blogs, post on Twitter, send e-newsletters, email folks you haven't connected with in a while to set a lunch appointment, etc.

If the open house is busy it is a perfect time to impress the buyers that come through with your own expertise as a Realtor - this involves showing them about your own local market knowledge and secondly showing them how quickly you can help them via the Internet. If the subject house isn't right for them (which it rarely is) I use my computer or my iPhone to pull up some other listings.

There is nothing that impresses a new prospective buyer quite as much as saying "hang on a minute", pulling out your mobile phone, showing them a listing and emailing it to them so they can look at it in more detail when they get home - or better yet - showing them the listing on your iPhone and making an appointment to show it to them right after your open house.

One last point about the higher-level of open houses in general. Do they help sell the subject property - concensus of most folks I know is that they do not - and you need to be honest with them. You also need to be honest with them, that the more people who see their home or drive by and see the sign - the better. I did an open house at one of my own listings in October. I put out a promotion in LISTINGBOOK for the 7 days preceding the event. The Open House Promo in LISTINGBOOK drew 45 views and 3 saved favorites. This can only be a good thing.

My office has about 75 Realtors. Some do open houses on their own listings some do not - however. There are probably about 20 - 25 open houses each weekend in our town from my company - that's a lot of signage out there. So while you must be honest with a seller that the number of people who do buy properties that they visit on an open house is a small percentage - the fact is that we are collecting buyers at 20 - 25 places each weekend - it adds to the reasons why our company is a good place to list.

All of this really boils down to the point that national stats are great guidelines but they have to be blended with local and personal stats in order to make a decision on how to run our own individual businesses. The idea of banding together to end a specific marketing tool doesn't seem to make sense, to me.

I think for the most part, open houses are a true waste of time. I have been a realtor for 4 years now, have done plenty of open houses and have not sold one house to someone who came in looking at the open house listing. I have gotten a few clients, however, to show other houses to and that is basically the only good reason to do an open house. Being a woman, however, I have never felt totally safe doing one, especially an empty home, and keep doors locked until a customer comes.

Lee -

Relevant post - great comment string!

Here in Chicago, aside from the feeling of weaker agents that you have to do open houses because the seller wants you to, residential open houses are done for one of two reasons.

1. At the suggestion of the Broker of the Office, who wants greater visibility for his office name, and agent justification for his out-of-mode print advertising he contracted to.

2. At the agents' own initiative, thinking open houses will generate leads, even if they don't buy that particular house.

Neither are likely to sell the house being held open. Therefore, it is not in your fiduciary interest to your client to hold it open - only, with a slim chance if you find some leads, your own interest.

There are so many other, more impactful things you can do to get your listing sold - virtually all these days are Internet based, less of an investment in dollars, and, in the end, far more cost effective. They are also a better use of your time.

My two cents - spend your weekends with your family!

DEAN & DEAN'S TEAM CHICAGO

Lee, it looks like a lot of agents and brokers have chimed in on this. Here is a comment from someone who is not an agent or broker.

Open houses are critical in some markets, while may not be in others. For example, where I lived in CA, open houses contribute a lot to the networking and marketing that are successful tools to selling a home. It was a Sunday social event, much like taking a Sunday drive. Where I now live in KY, there were not many open houses 7 years ago. Now, I see them a lot.

I went to open houses from time-to-time living in CA. It was one of the things that kept me interested and motivated to buy a home, even when I wasn't ready. But, and this is critical, it nurtured my desire to buy a home. Without it, I might never have purchased a home, or not purchased for many more years.

Open houses may not be directly linked to the sale of a specific home. But, open houses nurture the desire to buy a home. Open houses push demand, create the need to buy. Pushing demand is what contributes to many sales in many economic sectors. Don't you want to push demand where you can?

I agree that open houses are a waste in most cases unless it is a new construction site. I have done many many open houses in the last 18 years and find it to be for the sellers perception that we are marketing their property. The days of using an open house to get a client base are long gone. mostly lookie loos and nosey neighbors, I find in our area in NJ it is an excuse for the realtors to sluff off their responsibilities of their buyers. How ever if the seller feels the need. We are there to pprovide a service

Lee - well you have certainly raised an important issue and generated lots of discussion.

I do opens occasionally but not on every listing, and I do explain to the sellers the concerns about them. Typically, if I do one, it is when the home first comes on the market. But repeatedly doing them does not seem to work. There are some exceptions - a cololeagyue of mine does them iin the small community where he lives and has probably double ended 40% of the homes he sells from opens.

Jeff

Interesting lines of thinking here.

I suppose that if you stick one sign out there nothing will happen, and justifiably you could say it is a waste of time, but so is flipping burgers at mcdonalds...

my point is, if the system you are using does not work, then modify it until it does. Are you using lots of signs stratgically? Are you inviting people?

For those who have tried, with little luck, ask how to do it... it is not that hard, and much money can be made.

For those who are just lazy, just say so, I understand.

Many agents are not holding open houses that are worth attending.
The effort that is put into open houses by most agents are abysmal.
If the sellers only knew how little goes into an open house by the agent --- they would not elect to hold one.

Some One may have alread cover this .I did not take the time to read all the post.

I for one HATE open houses, I try not to work weekends, and I sell about 60 homes a year. So I am very happy with my sucess. and still have time for me.

But the reason I hate open houses is because I do not work them like I should. Open houses is a great way for an agent to build there business. Not during the open house, But before the sign goes up.

IF you want your open house to be a sucess. Days before the open house, You get out from behind your desk. You walk and greet and smile. Nothing will ever replace face to face.

Remember the main reason for a open house is not to sell the house your holding open. That is what we tell the seller to make them happy.

If you want a successful open house. Use it to meet the people in the neighborhood. Take them a flyer, ask them if they know of some one that might want to move in the area.

There is no magic bullet in Real estate, The Internet might get you business. But it will never replace the real agent,. That knows how to work, If the internet is all a person needs, then we are in trouble.

The part time agent, that does not know the diffrence in a slab or craw space, just needs the biggest and baddest internet site, Then I am in big trouble. Again I hate open house, because I have gotten to lazy to work them Like I use too, But lets just say I use to do them, and they are part of the reason, 22 years later, I am still making a good living and loads of free time In this business we call Realestate............

I use Open houses to the fullest of my advantage

Open Houses work in my area and they work well I can attribute 4 sales this year directly to Open Houses

2 Open houses this year helped me sell a home I had listed the first week end on the market ! and with the high traffic count drove the price of the homes over asking,

I also pick up buyers and add people to my data base

Another thing I do is send active buyers I am working with to other agents open houses alerting the agent ahead of time- I can attribute another sale this year to this great time saver.

I agree Not every home is a good candidate for an Open House & I will discuss this with a seller

A top agent in my area does not do Open Houses & you bet, I use that against them at a listing appointment .

Lots of great posts! Open Houses can be hit or miss, yet I have had quite a few transactions this year from buyers I met at Open Houses and am currently working with another client I met at an Open House. Pre-planning and joining with colleagues to host neighborhood Open Houses has been pretty successful too.

I despise dual agency.

I list a home to sell it, not generate buyer leads from it. There are far more efficient and effective ways to do that.

I'd rather spend 2 hours on effetive marketing methods that trying to pivk up random buyers.

If you need an open to prove to a client you are working, you're doing it wrong.

I agree, but we do them occassionally for our seller who thinks they work. After we do one, they get it.

However, I know some area's of the country that they seem to work OK in.

But, here in Ann Arbor NOT.

I think that the success of an open house depends on several factors. 1. The market area in general. Metro Atlanta is not a great market for open houses these days. Inside the perimeter I think it is much better but in the burbs, not so much. 2. The level of staging in the home 3. How clean is the home 4. The desirability of the general area and the neighborhood and finally, 5. How close is the home to a major thoroughfare - I've held open houses on gorgeous estate homes on acreage and it's a waste of time here.

I try to explain to each potential seller whether or not an open house for their home would be beneficial. It rarely is and most of the sellers that I run across don't want to be bothered with it.

I am going to have to respectfully disaggree here. For me, I had serveral closing this year that were rooted from open house. And, I didn't really do that many. In addition, it benifits when the neighbood sees your signs. I have had people say you really work alot here. Your name begins to get noticed.

Now... I HATE putting up and taking down the signs but that's life. As long as I continue to see possitive results I will continue to do them.

Lee,

I agree with most of the comments but reading through, and I admit I scanned a lot the important point I did not see. I apologize if someone mentioned it and I did not see is the fact earning your commission. What everyone said on this post is absolutely true. I have sold one home in sixteen years on an Open House. I had a few buyers from Open Houses. I do it for my sellers. I do not consider myself desperate as mentioned on this blog. It is not about us getting more clients or selling the home the day of the Open. It is about wanting to do everything you can for your seller to help sell the home. You keep record and report to them how everything you are doing is going. Do I have better things to do on a Saturday and Sunday? Absolutely, but it does not mean I am less of a realtor because I chose to do an Open or I am desperate. Those that are making comments like this are trying to justify why they are not doing them. It is okay if you do not want to. Every area is different. However, do not knock other agents if they do them. I use my time catching up on paper work, updating the web site, blogs etc. Keep safe by having someone go with you, keep your cell phone near, tell your office, family and everyone you could think of where you are.

Lee,

Some really god responsees. I prefer the rifle approach rather than a shotgun, lay out the statistics to sellers and then ask them if they want to leave their home for the best part of an afternoon on the cahnce that someone may come by or pick up and leave for an hour when there is an interested buyer. Rarely do they push for an open house after that and always to feel that the agent is working. Open houses used to be a good source of leads, but not anymore because of the internet. Now it's usually the neighbors wanting to see how the sellers painted, decorated or upgraded, etc.

The decision of whether or not to do an open house is purely an individual one. It is contingent on the house, the neighborhood and the town. Some areas work very well for open houses and some do not.

This is not a cookie cutter business and I think all marketing needs to be tailored to the specific home and situation.

Amen brother! Lee ... we met a couple years ago at a RE/MAX function. You are looking well.

Al Block

RE/MAX First

I just closed on a property on December 24 where I represented the Buyers. I met them while I was doing an Open House at another property. I live in a resort community and I have picked up the majority of my Buyers at Open Houses. And I have gotten listings because Sellers see my Open House signs and that has given me great name recognition. Yes, I use the internet for marketing but Open Houses have brought me more Buyers in this resort community.

While I'm not a fan of open houses, I do know an agent who picks up 70 percent of their business at opens. The agent strictly farms one neighborhood. All of his listings are in the neighborhood and he is considered the area expert.

I also agree that open houses represent a huge risk for the seller, agent, and brokerage. To make matters worse, many of our local cities have sign ordinances that prevent us from placing open house pointers to drive traffic to the open house. Not only do they pick up the signs, they also write $200 tickets.

I actually had my only negative feedback left in an online forum from a seller who was upset that I would not hold an open house for her. The home was located at the end of a 7-mile dirt road out in the county and I highly doubted you could drive any traffic to it. It really wasn't an issue as I had the house under contract through a cooperating broker in less than 2 weeks. The comment she left was that I was a bottom-shelf agent who should be avoided. I sold a home that sat for months with another broker in about 2 weeks. Most sellers would have been ecstatic.

I think the value of the open house has diminished over the years but does work for some people and homes depending upon the location and situation.

Tom Branch, Broker Associate, RE/MAX Dallas Suburbs, http://www.thebranchteam.com

Like many others who commented, I will do open houses on a case by case basis. I don't love them but I don't hate them either. In my experience, they are not well attended and that is disappointing. On one of my early listings, however, I had a nice couple come look at the house I was holding open - one of only two visitors that afternoon. That particular house did not work for them but, in conversation, I found out what they wanted in a house (and became their buyer agent and found them a home they purchased), found out they had a house to sell in order to buy (so I listed and sold it) and they have referred relatives to me (buyers and sellers) over the years. I am more apt to do a broker open house but sometimes an open house is the right thing to do.

Hi Lee,

I agree - and disagree - with your comments - and others included here... and I think the reason is that we are each unique as Realtors - and each do the type of Lead Generating that we are really good whether it be open houses, Internet marketing, cold calling, door knocking, referral generating, FSBOs, etc...

I have another system that I use - and I tell the Sellers upfront at the listing appointment about how I do open houses. I do what I call a 15 minute open house for every listing I have - and if it is very successful, I will do two. But that's all. If the Seller wants more traditional open houses - and a lot of them, I tell them that I won't be doing them, but I have other agents in my office who are often available and wanting to do them. And I explain why they want to do opens - that it's for their personal lead generating.

The way my 15 minute opens work is that I do all the upfront advertising I would normally do. But the sign in the yard - and all my advertising - says "Open House Saturday 2PM sharp!). I then tell the Sellers that I will be in and out of their home in 15 minutes - unless there are a lot of people then I may be there up to an hour. I use very few signs on the day of the open - sometimes just in front of the house.

In my advertising (I have a hotline) I let people know that there will be a lot of people at the open - and to please come on time. This really helps with the safety issue as someone who wants to find me alone in a house wouldn't choose this open to come to. I also usually have another agent or friend with me to help with crowd control if necessary. I once had over a hundred people come to one of these opens - and the police were driving up and down the street trying to see what was going on! Generally I have a lot fewer people - depending on the market and the price range - and sometimes no one shows up. But at least I have only invested 15 minutes and my clients have not had to give up their home for hours on end.

In the summer with more daylight I will often do these 15 minute opens at odd times, like 6:30 Tuesday night. That way you get people who are really motivated and serious - not just the lookers. And I do include the neighbors - not only giving them a chance to pick their new neighbor, but also to add to the numbers at the open giving it more of an auction effect.

I personally hate "traditional" open houses because it feels like such a waste of time to me. I spend a lot of time and energy (and money) up front letting everyone know about the open (email blasts, open house ads, Craig's list, postcards to neighbors, Open House on our MLS, sign in yard of date time, etc.) yet I've had many opens where not one person came. It doesn't matter how great the house is, how great a Realtor I am, how good I am at lead conversion, if noone shows up, then it's a total waste of my time. And a 2-3 hour open house is more that 2-3 hours. In addition to the marketing time before hand is the time it takes to place signs everywhere - and then pick them up.

As I said, each of us is unique in how we do our Lead Generating. So Open Houses can be great for some. Personally, for me, I get most of my business off the Internet and the rest from referrals and sphere. That's what I'm good at. To each his own... :)

Connie and The West Metro Team in Minneapolis

http://www.MinneapolisHomeFinder.com

The latest national home sales statistics indicate that 6% of the Realtors account for 94% of the home sales in this country. The 94% of Realtors who sell only 6% of the homes tend to be the ones who sit around at open houses waiting for something to happen. Don't personally know any of the people who do 25 million to 150 million per year ever doing an open house. The worst thing that can happen to a new large market agent is to sell a home though an open house sitting. They will sit there for 10 years and very likely never sell another if they last the ten years before they quit the business. Brian Buffini says that we sometimes can be rewarded for bad behavior and that's not a good thing.

There are exceptions like resort and small markets where open houses still get traffic. I still wonder, even in the small markets, how much better these agents would do if they were implementing the 21st century tools like Buffini, Proctor, Ahearn, and others teach???

I won't even address the safety issues and dual agency because others prior to me have done a good job on that topic. I personally would not want my wife or daughter doing an open house.

Interesting discussion...my market is in a strange stage right now. I am seeing new listings doing "showcase" open houses. The price the homes and list on a Monday and in the listing they tell us that the only time the home will be available to show is that weekend....the hold the open houses Saturday and Sunday and pick an offer on the following Tuesday. It's very effective......Plus the agent is there with a staff....someone upstairs and downstairs (which helps security) and it creates urgency and excitement.

I like the idea...other than that? I don't hold open houses anymore unless my sellers insist, but I do think it's great experience for new agents.

I've had some success with open houses especially when a home first hits the market. Oftentimes the property gets a lot of buzz from the neighbors that first weekend and you will get a bunch of foot traffic through the house. I held a 2 hour open house back in the Spring, had nearly a dozen people through during that time, and got an offer from the neighbor's son across the street. He wanted to live nearby his parents.

Mary in #104 -don't you think you're being a little harsh? This blog generated a lot of feedback and some great comments which I found insightful. Can you share some of your successes with open houses, because they don't work very well in most of the Phoenix market? We seldom do open houses because of the ineffectiveness of them and the safety concerns. I certainly don't feel that we are lazy, we just employ other marketing methods.

We've tried sending out postcards to neighbors, holding drawings with prizes, gifts to the first people in attendance, running ads, lots of signs, broker tours, offering ice cream for kids and would get no traffic. The only places we've had good traffic at open houses are in the historic areas and homes busy roads, but then the thing the viewers didn't like about the homes was the traffic noise!

For a while here, you didn't want people to know a home was vacant because they were getting stripped or spotted by gangs of young people looking for empty homes to party in and trash. I agree that it is local. I can see where destination locations would be a great place to hold open houses. I go to open houses when in other towns and learn a lot about the market and the area from the agents.

Open houses are for the most part passive and you're waiting for someone to show up - are they a nosy neighbor, are they qualified, etc.? You don't know what you're getting. For us, it's more productive to get out and stay in contact with our past clients and network with businesses.

Thank you for the statistics and the post. I continue to do Open Houses, because my clients expect them and feel like they are part of selling a home. I choose to do more Open Houses for homes that have less Buyer Traffic through Realtors, than for listings that have high buyer traffic through Realtors. I want the Sellers to know that I will do whatever it takes to sell their home. Buyers are generally surprised when they get inside the home, as opposed to what they thought might be inside from just a drive by. Most times, the interior is better than they thought. Although there are Open Houses that are quiet with no Buyer traffic, I have had many successful sales through Open Houses.

I rarely do open houses anymore, but it depends on the seller (as most have stated here), and it depends on the price and location of the home. Rural homes get NO open houses. High-end homes USUALLY don't have an open house. Entry-level homes in our urban area MIGHT get an open house. However, I will do Broker open houses and broker tours to expose the home to brokers rather than directly to buyers.

I think this is a community by community decision. I have had incredible success in the past two years doing open houses in certain communities that I farm while not so much in other places. There are certian places that people want to live and they are willing to drive around to see if there is anything available there. So I think you would be asking for a lot from all Realtors to simply give up this practice.

Thanks, Lee.

Open houses are great for agents for picking up buyer prospects, but seldom produce buyers for the particular house being held open. As the agent for the seller, I feel obligated to disclose this to my sellers as part of the argument against doing open houses.

Great diversity of opinions on this subject. Just goes to reinforce, real estate like politics, is local. What works for one area does not necessarily work in another. Also depends to some extent on the agent's marketing plan and ability to execute a plan.

I agree that open houses are not what usually sells that particular home. Ski resort areas such as Park City, Utah where I live and sell real estate the story is a bit different. Many people visit here in ski season as well as the summer not intending to become buyers. An open house can start that conversation and start that one-on-one relationship with them. Yes, they will go home and search the internet/MLS for their dream ski home, hopefully they will use your site to do so because there was some type of connection with you, the agent.

I knew as long ago as 1998 that the internet was the future in the initial home search, but as of yet it has not replaced the relationship as the main reason a buyer chooses one agent over another.

It's been well established that an open house is, in all likelihood, NOT going to sell the home that's open. However, for me, the open house serves two valuable functions:

1) It brings buying clients to me, more or less on my "home court". If anyone knows of a more efficient way to have prospective clients who are ready enough to buy to be out physically shopping come to me, for an investment of two hours of my time, please share. Further, these clients often represent an additional listing transaction in the event that they need to sell their present home in order to buy. If the listing agent prefers not to work with buyers, refer the leads out and earn a referral fee.

2) It DOES demonstrate to the listing client that you're doing everything in your power to market their home. You can provide all the theories and facts in the world about the inefficiency of the open house in selling the listing, but omitting that facet of the marketing effort is always going to represent to the client a hole in your plan. They may take your word for it, they may even agree with you, but they're always going to wonder, and they're going to wonder more the longer the home sits on the market. I usually say to the client, "If you like, we can hold an open house, just in case that needle in the haystack walks through the door".

I fully admit that there are times when I'm sitting there in an empty listing that the idea seems like a colossal waste of time, but I just try to remember the two points above. If two hours of my weekend will help cement my listing client's faith in me (as opposed to "proving to the client that you are working") and possibly introduce me to a new client or two in the process, I'm game. I bring my laptop and my little My-Fi hostpot and get a couple of hours of work (including other methods of prospecting) that I would no doubt be neglecting if I were sitting at home.

Honestly? Flat out refusing to hold opens seems a tad stubborn to me... Why preclude yourself in the listing presentation by refusing to do something that's basically effortless? Still feel like an open house is beneath you? Farm it out to a new agent. Offer some advice, and you'll have a new ally in the office.

With all that said, I think I would be remiss if I were not to mention that an open house, in my opinion, represents somewhat of a shaky proposition for a woman Realtor. The prospect of being sexually attacked is something I personally don't ever have to consider, but it's a reality for women. Take a partner. Proceed with caution.

Jeff Dominguez

With its year-round sunshine and dense population, open house is a popular method of marketing in my local area, the Palos Verdes Peninsula, CA.

I agree the majority of buyers begin their search online, but viewing homes at open house is the next logical step. I find not only are they looking at a house of interest they are also interviewing agents to act as their representative when they do purchase.

I do open houses in my geographic farm because it is one more opportunity for personal contact with my neighbors and clients. I also do open houses as my name is in the paper in a new area in which I hope to become known as a "specialist" and repetition is a good thing. I have sold many houses to buyers I have met on OH as well as sold the open houses when the buyer's agent uses my open time as an opportunity for buyers to take a look. Real estate is local, as are statistics.

Kathleen Barnato

Prudential CA Realty SouthCoast of Santa Barbara County, California

Montecito - Hope Ranch - Santa Barbara - Beach front

Lee,

The reason most people shy away from open houses is that they expect a buyer to come walking in. Wrong perspective. When used strategically open houses are great traffic generators. :)

Steve

there are many schools of thought on Open Houses, I list and sell REO's so our homes are empty, we team the open houses, have multiple agents in the home at all times and use them as a remote office, if nobody comes in they can work if someone comes in they may have a chance to pick up a client.

Lee, seeing that it pleases the seller, open houses will not be going away anytime soon. A rookie can hone their chops at converting these ever more savvy buyers coming through to open houses, but the value is to please the seller. And hey, that's probably more valuable to you, right?

About 50% of open house visitors in my area are neighbors and there are some legit buyers rolling through there.

If the agent can convert, they have a good chance at picking up a client.

Great post.

I enjoy open houses, and am always productive, even when nobody comes. I just work as if I am in my home office - writing a blog, analyzing the statistics, writing ads, or talking on the phone.

I have sold some homes directly from the open, and I have met many buyers or sellers who dropped in to visit with me and take advantage of the opportunity to "interview" me without any committment on their part. If sellers believe in open houses, they are very likely to attend them to pick out their next agent!

Open Houses are just one more "tool" in my collection!

Office managers and broker-owners love open houses, because that equals more signage and more exposure for their brand all around town on a Sunday afternoon. But the numbers do not lie. Even before the internet, the percentage of buyers who bought SPECIFICALLY due to an open house was less than 5%. Today, open houses are about as useful as those old prehistoric metal lockbox keys.

Time was, newspaper advertising and open houses could be justified as part of a sound property marketing plan. Today, both are a huge waste of time and resources. I've experienced the same thing, Lee: as soon as I tell a prospective seller the TRUTH about open houses, they all say the same thing -- "That's great...we were hoping we wouldn't have to do any."

Before the internet, open houses gave buyers the opportunity to scout out areas and homes before deciding what or where to buy. Today, they can do much of that sitting in their bathrobe with a few clicks of the mouse.

We need to be progressive and change with the times. Time to put the final nail in the OH coffin. Or at the very least, share with your clients why you REALLY want to hold their home open every Sunday.

I agree that there are alot of safety issues and that the probability of selling the house at the open is at 1%. I do open houses alot. In the spring and in the summer months when our market is booming I do open houses every weekend,not for the same house of course. At the listing appointment I educate the sellers about who and where their buyer is going to come from and they still say ok, when is the first open house. Somes sellers believe that an open house is the best way to get the word out about their home. Open houses are a lead generation tool. I have very successful open houses because I make connections with people. Also, Howard Hanna Real offers a tv show on Sundays that advertises our listings that are open. I have gotten listings because the sellers wanted to see their home on tv and only Howard Hanna can offer it in Erie. So you have to do open houses. I love doing open houses. If the traffice is slow I can have some quiet me time and if it is busy I can get some leads. I do not agree that agents who do open houses are stuck in the past or too new to know better. You need to understand that the chances of you selling the house at the open house is very slim,but can happen. I did an open house on Dec.13 and I got 2 buyers for that house. It depends on the area you live in and mind set of the people. Here in Erie,consumers love open houses. If you have systems in place and good communication and repore building skills,open houses can be good for your business growth.

Lee, I think the success of a open house has a lot to do with the area you work. I live in a resort area (Lake Tahoe) where not only Buyers stop by but it gives both local and out of area agents a chance to preview my listings. When I have an open house I always take a project to work on so the open house is always productive, even if no one stops by.

"I am particularly interested in How the Buyer Found His or Her Home in the last year because that determines where my marketing efforts will go to sell the homes that I list."

Your focus differes from mine on this statistic.

I am particularly interested in How the Buyer Found His or Her AGENT in the last year because that determines where my marketing efforts will go to sell them homes.

All of your points about the usefulness of open houses to sell that house, and safety are quite valid. but by the stats 36% buy through the help of a REALTOR® the same number that will find their home on the internet. So I double up! I bring my laptop (after all you might need it to show comps and other data to interested procpects) and get some blogging in!

We all need to talk to our clients about the good points you bring up here. Then with their input, build a marketing plan. Opens or not.

The different markets are obviously like apples and oranges. In Houston' you could invite the neighbors, advertise in the paper, put the open online, and hire the Goodyear blimp to hover overhead. Still, very few will show up. We also have sign laws in that limit directional aid in getting there.

I've read all the posts, still think most are not proactive and are wasting valuable time that could really generate business. Not with standing the time away from family. The statistics simply tell the truth. Less than 1% of all sales nationwide can be attributed to open house. Why not work on the methods that attribute to the 99%??

It really depends on the neighborhoods your peddling property in. If you're in a high end neighborhood i.e. Rancho Santa Fe or La Jolla in San Diego or Newoport Beach or Corona del Mar in Orange County or Beverly Hills, in L.A., or Pacific Heights in San Francisco, etc most of those homeowners and/or agents wouldn't think of letting strangers wander through their homes and scope out their valued treasures. Many of these mansions and estates have priceless heirlooms and antiques and would never consider an open house. I've been through many high end homes that look more like a Paris museum than a home.

In fact their agents go overboard to qualify potential buyers and in some cases I've even heard of homeowners and/or agents insisting on employment verification, credit checks, bank balances, financial statements and yes even criminal background checks. Once completed they even take it to the next step and require an offer or intent to commit to an offer before they allow their privacy to be broached. Frankly with all the weirdos in the world today I can't say as I blame them or any homeowner for that matter

Lee,

I knew when I saw this headline you would get both support and feedback.

Just like any marketing technique, open houses can be a waste of time, energy, and money- if you let them.

Many of the reasons they wont go away have been listed above.

Buyer generation (also sellers in disguise)
Networking
Effective in local market
It might actually sell the house- you just never know

I've been around the block enough to know that you can't guarantee what marketing technique will sell the house, so I will try several strategic marketing plans, and if an open house is one of them...

It's part of the job man- you're your own boss, so don't do them if you want. There are certain things I won't do, but this isn't one of them. I'll take your transactions if they make sense.

Hi Lee. Indeed holding open houses is a great way to build a contact list even though it's off the bottom of the chart in finding a buyer for that particular home. I must say though that in looking back, my open house contact list has been most unproductive in terms of conversion to a sale.

Hi Lee.

I do open houses for three reasons:

1. Sellers like them.
2. I can and do get buyer leads.
3. I put my personalized signs up all over the place.

I love open houses.

Ken

I think it depends on the area. In urban areas, if the listing has a very high Walk Score, and open house can be very profitable. In the outlying areas, not so much. Just like real estate, open houses are local :-)

As an agent with only 18 months in the business, I wrote a contract in my first two weeks at an open house. That sale failed due to the buyer not qualifying for a loan but my 3rd sale was with a buyer that came to an open house at my very first listing. She stated that she had gone to many open houses, met a lot of other agents but felt most comfortable with me. She bought a different house but for me, the open house thing worked. Even knowing the stats on open houses, I enjoy them because it gives me a chance to get out and meet people that I would not get to met other wise. They also give me a chance, at times, to just sit, breath and do nothing and I find that I need that sometimes as much as I need anything else.

Thanks for your post.

Lee

As with any tool, knowing how to use it and wanting to know how to get better use of the tool can be the difference between successful open houses or not.

Hi Lee, interesting post and lots of great comments. Here in Owasso, a town of about 30,000, open houses work and work well. I have one client right now who is building a house. I met them at my open house and they chose to work with me from there. I sold that very same house to a couple who came through with no agent. Do open houses work every time? No. But in some cases in our areas, they work great!

I did an Open House not too long ago for a home that was absolutely gorgeous but not getting too many people through. I got not one, but two buyers who wanted to write on that house! I ended up with an offer and getting a listing as well. What did I do differently? Lots. I linked technology with my Open House, did a customer survey of the 12 couples that came through, and offered things (balloons and cartoons to watch) for the kids to attract families. I know this might not work in all areas, but it sure was productive for me. I even had a few people tell me that my Open House was vey professional. It s my hope they will choose me when they need a realtor.

Cheryl Kurek

Sutton-Premiere Real Estate, Sherwood Park, Alberta

I agree that no one should do an open house alone; whether you have two agents, a lender or an industry related professional as part of the 'hosts'. Open houses do remain a good source of lead generation, especially now with the extended first time home buyer credit and the $6500 credit. I an changing the format/venue of my open houses as well...I will have a lender, attorney or inspector with me and will offer a workshop during that time period with the permission of my Seller. That provides a definite 'call to action' and gives an 'item of value' to everyone. A happy, healthy NEW Year to all and let's make 2K10 the best year yet!! Be well...

Hi Lee. I CLOSED 3 deals this year from Open House leads, and they were all the easiest transactions in which I made the most money! I'm with Ken - I love open houses!

After doing new home sales for over five years, I think open houses come naturally to me. And if you don't just unlock the door and really show the home, I think you have a great chance of selling it to the prospective buyer. It happens. It happens all the time. But its about how much energy we put into trying to make it work.

Hi Lee,

I'm sure it may be state specific but the third category for Realtors in California that DO open houses are successful Realtors that give their clients what they want. Customer service!!

I have sold homes from open houses. I do enjoy the escrow closing and getting the whole commission and being able to control both sides of the escrow.

I actually use the internet to advertise my open house when I do it. Notice that many of the California Realtors that responded are positive about holding a house open. Can't necessarily lump everyone into the same category of either novice or technology challenged.

That's like saying that every market is the same...and 'national' stats are what is fact. NOT. In Honolulu County our neighborhoods are so densely populated and one right after another...OPEN HOUSES DO WORK. It is also a part of our marketing....amongst internet marketing. When you have 6k agents on a small island you do everything to market those properties for the seller.

So, bottom line...may not work for your area...but it works for ours....on top of internet marketing and other advertising.

Here's an example. We held an Open House for a two story townhouse. We had 50..yes FIFTY people walk through. Subsequently, the first offer backed out because the wife decided she didn't like it. The second one was due to the buyer not qualifying with FHA's changing criteria. The 3rd is going to close in two weeks. These were ALL from my open house guest sheet and contacting their agents when the prior ones fell out. We had multiple offers and in the end the back offer prevailed....

I wrote a post about this - open houses DO work. They give buyers a chance to see the property without having to make appointments. it's a win-win-win for the listing agent, selling agent, buyers and sellers.

I will not tell any seller I will sit there house on weekends. I would rather have the time to show buyers. Never turn down a chance to show in hopes of getting a chance to show, daa.

Lee,

As with everyhting, our market has evolved and so have the methods to reach the consumer.

As a professional sales agent, Open Houses simply are an open door for people to walk into your "office" and get a first hand look inside your product while you have an opportunity to sell your services. Perhaps Realtors are just not using Open Houses as a tool correctly. How would you handle a person who just walked into your office? Would you just hand him a flyer and tell him to look around and if he has any questions you will answer them. If crime and robberies are a fear in your area, perhaps do the Open Office House with a team. Invite a lender, Buyer's agent, etc.

Happy New Year!

Like many who've responded, I love open houses. I've met many of my clients at open houses, and they have bought the house I held open and/or other houses. I use the internet and social media to stay in touch.

I've never felt endangered or had anything stolen.

It's effective here, you meet people who are interested enough to get out and start looking! If agents who prefer listing (or have too many to hold open) work in partnership with agents who like representing buyers, everybody wins!

Best regards,

Carol

An agent would only want to do a open house if:

#1 they would not mind spending a few hours to double end their listing. Rate of pay per hour is high. If you don't want to double end your listings hire a few buyers agents to write up the extra deals for you.

#2 Wind up the afternoon with a new list of Buyer and Seller Prospects at virtually no cost

You do have to buy a few signs but that is a one time cost good for a few years and you might also spend a couple of dollars on a flyer to hand out with property data and your contact information

The list goes on as any agent knows that is trained and practiced in the art and science of how to hold a successful open house.

If security is an issue you might want to team up with another agent to hold the house open. Some times in some areas it can get very busy these days

You will need to practice your scripts and dialogs to be able to capture the many buyer and seller leads coming in the door. Most agent have very limited skills in this area and wind up with very few leads at the end of the day.

You need to pick the right house, promote the open house properly, place enough signs in the right locations and know how to capture the many leads coming through the front door or you would be better off staying home waiting for the phone to ring. When it does you might have to drive across town to show that listing to that on interested buyer who you could have invited to see the property at your afternoon open house along with all the other potential buyers.

Seeing a few competitive buyers looking at the home during their visit always seems to increase their interest in the property and desire to talk to you one one of your buyers agents about how to write a offer that afternoon.

This plan will only work if you do Happy New Year
Fred Martin
Century 21 Alpha
Fred Martin REO Team
419 E. Hamilton Ave
Campbell CA 95008
Member of NRBA, REOMAC
Fax: 408-523-8001
fredmartin@aol.com
www.fredmartin.com

Lee...I'm sure there are plenty of agents who would agree with you on the Open House. I personally have had good success with Open Houses and I think it's like anything else in our selling aresenal...you are either good at it or you aren't.

For those who are good at it, it get's them sales, buyers and new listings. Anyone who wants some great tips for successful Open Houses can get some at Open House Tips.

Funny thing Lee, I think this is probably the one thing in R.E. that has so much controversy surrounding it. Some agents love them and swear by them and some, like yourself, oppose them terribly. I guess it all boils down to what you were taught way back when and if your broker still encourages the agents to do them. From what I have learned in the short 2 years of being an agent is... do open houses and you will find buyers.... of course, chances are you will not sell the home, or maybe you will.... how subjective. If you can utilize your time more wisely, I say, GO FOR IT!!!

I did have an open house that did result in a sale, eventually, however, the buyer came in without her agent and informed me that she was looking and her agent did know she was out looking. She did end up buying the house, however, she did find it online first.

Great article. It is so well written that I may print it for use in my listing presentations with no changes. I will of course leave your email signature intact so as to give credit where credit is do.

I am a newer agent (2 years) and the only reason I do open houses is to appease my seller. I am so desperate for listings that I didn't want to alienate anybody. That said, I AM internet-savvy, so in 2010 I will make the change!

I agree with Margaret Goss --- they are duds now.

I list Lori Cain's suggestion --- do open houses in your farm. You WANT nosy neighbors to come to those open houses.

I like Sue Wettstein's reasoning --- do them if the seller insists, but only for 1.5 hours.

Lee,

I AGREE! at the end of the day our safety, our client's safety and their home is at risk.

You will never get a second chance to make it right, if something goes wrong.

Location, no matter how nice can have unexpected problems. I DO NOT offer OPEN HOUSES as part of my listing marketing plan.

Better option is to offer a REALTOR "Open House" with FOOD and Drawings! Sponsored by one of your vendors.

This gives everyone a safe alternative to a "OLD" out dated, non-productive, u-safe tool.

Aloha Lee, one of my associates is closing a $9.2 Million dollar sale from an open house walk in, in a couple days, how does tha fit into the percentages? I recognize that in many communities "Open Houses" are not effective, however in my area, a resort community it is amazing how many people walk into open houses and walk out 2nd home customers. It is critical that you know your inventory and have a great presenatation because on any givin day you could be competing with 10-15 other agents in a 1 mile strech of beach road. Here OPENS are another very viable tool as is the internet and print media.

Great Post Lee. I strongly believe that in most cases holding a traditional open house is only good for picking up buyers. I much prefer to hold agent opens, I think they are much more beneficial to the seller. They're great for getting feedback for the sellers on price and condition and they are already familiar with the property when they have a potential buyer and much safer for the seller than having a traditional open house.

Great post here.

Being a loan officer, I have been asked to sit in on open houses with realtors various times this year, and of all those times sitting in, I had one "tire kicker" come into the home. Every other time, there was ZERO traffic.

With today's technology coupled with the more savvy customer, open houses, in my opinion, are a waste of time.

Paul

Why is it always "one size fits all"? I think marketing is tied to each specific market and agent. The key is to use your skill sets to their maximum. If you are good at developing relationships then open houses can be a great low key tool to do it!

I live in sunny AZ and we have lots of visitors who start out just as "looky loos" until they happen to step into a home that "talks to them". If they don't buy that one, and you have connected, they have the "buying bug" and you are their realtor/teacher.

Over 1/3 of my business has come from open houses...and yes, I have sold "that" house to several of those clients. One of them, I sold twice (3 yrs apart due to job issues!) to visitors to my open.

I realize the value of the internet, but it is only ONE tool...you don't need to throw out the baby with the bath water.

Personally I think there are a waste of time. Over the last 23 years., I can't think of 1 that got me any real business.

Patricia

I find that open houses are a waiste of my time? However I cannot deny that over the last 10+ years I have found many buyers and sellers through an open house.

I always tell my clients of the security issues, along with the rest of the pros and cons of having an open house but always follow that information with "It only takes one buyer and they might walk through your door at an open house"

I have also found that if you are trying to really market in one area and get your name out in that city or neighborhood that the more opens the better. Your signs are out every weekend and the neighbors are all out looking and talking to you, and who do you think they will call when they need a real estate professional?

Have I sold any of my listings directly from holding the house open? No. Have I ever gotten buisness from a open house? Yes and for 3 hours of my time a week it seems to be a good use of time. People only see blogs and most our marketing (including mailings) when they are thinking of doing some kind of real estate, an open house people see no matter what so are open houses a waiste of time?

The question of holding or not holding an open house is not even an area to area question. it should be approached on a house to house, owner to owner basis. I like your point "A seller who refuses to accept the facts, will probably be difficult when it comes to the many other things that come with selling a home such as pricing, taking care of the home, etc." Great post Lee, a topic obviously on a lot of minds.

I personally feel that open houses are a good place to obtain new clients and prospects as nothing beats face to face contact. I do think the internet is a good place to network also, I feel that too many agents are trying to tackle a huge giant, where competition is fierce. Unfortunately, many agents do not market properly online, or simply start the task and forget about it because they don't see immediate results. I personally do not do open houses every weekend, but rather once a month. Out of my open houses in the last couple years, I have successfully converted 5-6 Buyers and the best part about the open houses is that they cost nothing but time. Furthermore, I have created great relationships with these clients which have led to the creation of investment groups, handling rental properties, and more. With that said, most marketing can still be worthwhile if done correctly, but you need to designate your time and energy to what works. It is like door knocking, it works for some but not all. if door knocking doesn't work for you, then don't do it.

While they may work for some people in some areas, I prefer not to do them in my area. Besides being just a tool for me and not something that will normally sell the house (which I do tell my clients), I live out in the country (not in a subdivision). I've spent numerous Sunday's in an open house catching up on my reading (and not being interrupted once). :o)

There is still some value in doing open houses. There was a time when I picked up most of my buyers from open houses. Obviously that was years ago. As long as we as Realtors understand the new real estate marketing strategies, as well as our own market areas, we can decide individually, which, if any of our listings warrant open houses and how many. I don't believe we can let sellers dictate whether we have them or not. When we do a marketing plan for a new listing, this is the time to determine the relevancy of open houses.

These days an open house may generate leads which, if an email or snail mail address is obtained, can be put on a drip campaign and in time these leads could turn into clients.

I think a lot has to do with an agent's attitude about open houses. I was once in my childhood neighborhood, and saw a home where a friend had lived and I had visited many a time. It was being held open to the public, so for nostalgia's sake, I decided to go in. The sitting agent glanced up with a brief greeting/acknowledgment when I entered, then went back to the lively conversation she was having with a friend/colleague. I showed myself the main floor, upstairs, and basement, making sure I was visible to the agent. Not once did she say a word to me (and I was the only "customer" in the house at that moment), even as I walked by her on the way out the door! I never told her I was an agent, so I coulod easily have been a ready, willing, and able buyer that she simply couldn't be bothered with!

If this is typical, I will guarantee that her success rate at open houses is zero! On the other hand. spending a little time preparing information for visitors to take with them, making them feel welcome, taking them on a tour (without smothering them), trying to build some kind of rapport will get you something, somewhere, some time. Maybe not today, or maybe not this month, but if you just put in a little effort, you will most likely get something in return.

Yes, there are some safety concerns, but there are safety concerns walking down the street. Use some common sense to minimize the risks and/or dangers.

It is my job to get my listing sold, and I need to expose it every way I can: Internet, print, mail, and at least one open house. After all, it just takes one buyer, and it doesn't matter whether they come from cyberspace or a Sunday drive!

What a fantastic thread! I'm a brand new agent and will be working my first OPEN HOUSE this Sunday for a seasoned Realtor from my office. The home happens to be in my new neighborhood. I think it's a great way for me to meet the community and practice my skills. I tend to agree that OPEN HOUSES are just one more tool in my kit and I plan on using them when prudent.

I feel that Open House results may depend on your location. We have found them to be expected and very successful here in Virginia.. I have personally had the home sell 2 Sundays straight,, 2 years this happened,, I didn't go for the 3rd.. I am very successful in selling from opens,, even if the other agents write the offer.. I am a people person , giving them lots of info and showing them the benefits of the home. etc.. of course I have gotten lots of listings from the open homes as well.. so we must do what works for our market.. I have been licensed for 29 years.. and still doing open houses.. it works for us !!! Never had anything stolen from any of my homes that I know of due to Opens or Showings..I do prepare sellers on putting away valuables. It's show time...

Lee

It is amazing how many responses this blog elicited. It produced an interesting thread.

Lee, I am not a big fan of existing homes open house and agree with you on enhancement on the Internet. Today most people understand where the business comes from and only want qualified buyers in their homes with a Realtor. A good dealof my business is development / new homes and here we are in a different arena where open house makes sense. I have sold many homes from open house. 85% have found the house on Internet, search engines and all the other web tools we use. This is what works for me in my marketing area.

I believe it would be a generalization to say that Open Houses don't work. There are too many variables that dictate their success. You just have to find out what works best in your market. I would never refuse to do an Open House, especially if the seller wanted one. Sellers do have to be educated that Open Houses do not sell houses. The right pricing strategy does.

In 2008-2009 85% of my business came from Open Houses, and I sold two homes for the seller as well.

Real Estate is LOCAL. Open Houses are a GREAT tool, to meet buyers face to face.

Lee,

I agree with some comments that an Open House may work in particular markets. I personally feel that the best way to sell real estate is to price it correctly for its location and condition. I'm not an open house fan.

Hi Lee,

A lot of customers here in Venice seem to like making a day of looking at houses they've seen on the net down by the beach. I've picked up several clients recently that didn't have representation yet because I was there, ready to show a few more homes. There will always be a place for face to face sales with qualified shoppers no matter what technology brings... you're plugged directly into every sense that they have. What could be better? Happy New Year.

Lee I have to disagree. I have gained many sales generated through Open Houses. I sit them not to sell the parrticular house I'm sitting. If 10 buyers walk into my Open House I know only one of them can buy it. So I concentrate on gaining them as buyers or sellers for other listings.

I explain the the sellers the chance of a buyer walking in is about 1-2%. But it does give the home exposure on the market. There are some agencies that do little or no advertising. Their websites are weak and they have no internal support mechanism. Every Open House I sit is advertised on the internet and in local papers. I use a lot of directional signs in the neighborhood. It also gives me an opportunity to connect with potential sellers and buyers in the neigborhood. It's cheaper than sending out postcards and I always get appointments.

It's just another sales strategy. Last month I did an additional $600,000 worth of business from a buyer/seller I met at an Open House last year. BTW the Open House I was sitting when I met them was the result of another Open House a few months earlier. That seller/buyer gave me $1,000,000 in business.

Maybe you shouldn't be doing Open Houses. If you think they are a waste of time then they probably are. I don't SIT an Open House. I WORK an Open House. There is a difference.

Each to his own. People need to do what is comfortable for them and works for them. Personally, I have been suceesful with leads that I have received at Open Houses and I've even sold that particular house in more that one case. Are they a bust sometimes, yes. But I'm willing to take a chance.

I don't generally do an Open House by myself and I have a pretty good record of having people sign. I follow up with eveyone who signs in and can pretty much tell if we have made a connection or not. Face to face works better than other means for me.

Hi Lee. I have to say, that I am not a Realtor that matches the profile of either of the "two types of Realtors that still do open houses" but I do strongly believe in them. I am consistently successful ranking for the past several years among the top 25 REMAX agents in New England. Each and every year I can contribute at least 25% of my business to open houses. I will either sell the home or meet a viable buyer but either way, why would I not want to do them? I do insist that my sellers lock up all valuables because I will agree with your comments on safety issues. I believe in them so strongly that I will try to book two each Sunday for a 2 hour period whenever possible. In most cases I see 10-25 people. The more eyes on a home, the better chance of getting it sold. Even if it is just a "nosey neighbor" sometimes they are the people that know a buyer for the home. My sellers appreciate my efforts. I find that the majority of buyers (first timers certainly) start out going to open houses. Many are shopping not only for a home but sometimes for a buyers agent. They meet many agents at these open houses and a good agent that engages them in conversation and impresses them with knowledge of the home, the area and real estate in general, may well be an agent they decide they would like to work with. I have had many phone calls from buyers saying "I met you at such and such open house and would be interested in working with you as my buyer agent. Sometimes many months after the initial meeting. (I love those calls). If I meet a buyer for the home at the open house, and they wish to purchase this home, I of course represent the seller and remain a sellers agent. If however this home is not right for the buyer, I have found that many "unattached buyers" are ripe for building a buyer agency relationship. For those buyers that attend the open house but are represented by a buyer agent, I will follow up with the agent whose name they gave to encourage dialoug about the house and potentially get them back in with the agent. I builds rapor and relationships with agents who send their buyers out to open houses. The long and short of it is that if I can say that 12 transactions a year came directly from conducting open houses and most years I can...I will keep looking forward to them!

To me its strictly a LOCAL issue. In my own territory, the variations are dramatic. There are some areas where open houses do absolutely nothing....zero, zippo, notta. And there are other locations where they come in in droves. Some areas fall in the middle. I have found that densely populated areas in desirable neighborhoods attract a lot of traffic. Please note that the area I work turns on a dime as far as neighborhood. You can be in a major down town center one minute and go one mile and be in a small suburban village or even near a big park where the population is sparse. The more remote the neighborhood, the less traffic I get. I don't think that its any accident that areas like Manhattan still have a lot of open houses.

Great post! Excellent use of title to stir up a lot of conversation. Kudos!

Well, I'm firmly on the Open House "side", and I used to hate Opens! Over half my business this year came from clients I met at Open Houses, and I'm a President's Club Realtor because of it! I'm not a big Internet fan, but I'm smart enough to know it's because I don't do it PROPERLY! :), and if Opens aren't working for you, it's the same reason. If you are focusing on selling the house at Open Houses, you don't get it! There are houses you will sell at an Open House (rarely), but the focus should be on meeting prospective clients, gettting their information, and following up! I use an immediate personal note that I write that day, and then a follow up call, and follow up mail info on a regular basis. Take your laptap of you like, and work on your website in your spare time! There's nothing better than getting a call from a client who came through your Open 6 months ago, and is calling you to list their home! Because you are the ONLY Realtor who made any personal contact with them and kept at it! Like some of the earlier comments, I can't believe how many Realtor's use statistics to "prove" their point of view, but skip the parts that don't fit in! :)

Our team uses Open Houses as a tool to appease the seller, and aquire buyers--also you receive alot of good feedback on Open Houses from other agents and the public. I do them periodically to work on my skills-- Kathy

Great post. I stopped doing open houses several years ago. They are worthless.

I can not get behind you on this. Yes, the chances of an actual sale from the Open House is Slim, the marketing potential fo rthe agent is there. open Houses do not need to be a total bust. I worked mortgages for years and as part of my lead generation I attended Open Houses. I captured many many clients through attending open houses and built solid relationships with Realtors at the same time. If you do not want to do them, dont and if the seller wants them...Dont Take The Listing. A Properly executed Open House is evident when you are at one. Sell Yourself....not so much the house. People who are loking for Agents attend open houses....potential buuyers and sellers are walking through the door. Granted, You need to properly advertise the open house and offer some "goodies". A tray of cookies is worth capturing a lead to me.

Newbies Can Build their Database from Open Houses. They are NOT worthless.

Not only have I sold my own listings while sitting them open, I have picked up numerous buyers and sellers in the process, which have resulted in a string of multiple transactions for more than a few of them. Open Houses are obviously not my only marketing approach; I take full advantage of internet opportunities and social media networking. Let's face it, we should use a combination of tools that are available to us. When market conditions change, we need to be flexible with our marketing plans.

Favorite thing about Open Houses: Picking up new clients

Least favorite thing about Open Houses: Putting out/taking down the metal signs! (Especially when it's 100 degrees outside!)

Observation based on experience: Most buyers come walking up in the final minutes, as you are trying to lock up!

Lee,

True I am a fairly new agent 3+ years, but I do open houses and in the last three years have picked up 4 buyers - all who closed on a home, and 1 listing.

I have to agree with you, Lee. I've done some open houses recently at a seller's request...even though I've discussed that they usually don't yield a buyer. I've actually held open houses with the seller sitting with me as long as they agree to allow me to do ALL the talking to the guests. The time serves as a meeting and a bonding visit and I'm not by myself.

I refuse to do an open house alone. I feel like you may as well put a sign out that says, "I'M ALONE IN A HOUSE...COME AND GET ME!". To date, I've never sold a home through an open house and I don't think I've ever sold a home to a buyer who I met at an open house. I know one agent who has sold multiple homes at his open houses. I don't know how he does it but it's certainly not the norm.

I don't really care for open houses. I especially do not like it when traffic is slow to none. I find my self thinking about more profitable ways I can be spending my time. However, I will keep doing them because every once in a while a good lead comes along.

Although you might sell a house the main purpose of an open house is to connect with other buyers and sellers. Just because they begin the search on the Internet does not mean the end it on the Internet. At some point they need to make a connection with a real agent.

I LIKE open houses! When a house is vacant, I do open houses every weekend I can. When the house is occupied, I schedule Sunday open houses at the seller's convenience - Sunday because that's the day a lot of home buyers in this area drive around looking at homes they've seen online. I've not sold a house I was holding open, but there's always a first time! However, I have closed 4 transactions this year with people I met at open houses, plus 2 others from people referred to me by open house visitors. Plus, I've met many, many home owners, one of whom is ready to sell his house. I got a listing appointment because he liked what he saw and what he heard at an open house.

True, 80 percent or more of home buyers begin their home search online. They find a Realtor by personal experience, getting a referral from people they trust, advertising, etc. Often, they take a road trip to look at the houses they've seen online and stop to talk to agents holding open houses in the area. If I'm there, and they like what they hear, so much the better for me. Probably half he prospective buyers visiting my open houses have agents. Not a problem! If the agent is there too, that's one more showing and the sellers weren't inconvenienced with individual appointments. If the agent isn't with them - well, buyers sometimes switch to a more involved agent, don't they?

Preparation is the key. Yes, I've been left sitting alone at an open house, but can't remember when I had no visitors at all and I always plan things to do during the down times. Walking the neighborhood, newspaper ads, putting up directional signs early in the morning, all help bring visitors. Follow-up is equally important. If you have visitors, get their name, address, phone number, e-mail and don't stay in touch, you have only yourself to blame if open houses don't work for you!

Whenever there is an opportunity to meet people, there is a marketing/selling opportunity. I do prefer only to do my own open houses. I've experienced being asked by other agents to do open houses as a favor for them because their clients wanted them to but they had a personal obligation that weekend. This usually turns out to be a waste of my time and the money that I've spent on the snacks. However, when open houses are for my listings, and I do the marketing, usually something good happens. Either I meet a new buyer, and explain that as their agent, I will help them find the right house for them. It may or may not be this particular house. On my last open house, I was called by an agent who wanted to show my listing and was quite sure that her client would like it. She wound up bring her to the open house, which was great because all of the lights were on, there were yummy snacks and good smells, classical music playing. Also, there were others looking at the house at the same time, which urged them to put in a contract that evening before anyone else grabbed it.

I believe open houses are more of a waste of time these days BUT I think they are great for new agents trying to get their foot in the door and resales in additions with a lot of new homes are still great places to hold an open house.

Like I said, new agents should be holding homes open every weekend if possible. It gives them great experience and is a great way to pick up buyers.

DEC

2009

Like most aspects of real estate, the decision to do opens is based on many factors. By holding opens, I am prequalifying my buyers while meeting neighbors who may be 'interviewing' Realtors. If I have idle time, I'm updating my website or pulling market data. It's all about being productive. After 5 years Doing opens I find they continue to provide new client opportunities.

DEC

2009

Best post eva!

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Lee Morof, Associate Broker/Attorney/CDPE

Birmingham, MI

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