I'm not really a fan of Open Houses. In fact, a year ago I would have told you that they were completely pointless in the current market, at least in this area. Even with advertising, they weren't drawing many potential buyers at all. Maybe a few neighbors and a few dreamers, but that was it...
As Lee pointed out in his post, It's Time For Realtors to Stand Firm on Not Doing Open Houses, the vast majority of buyers are starting their search on the internet.
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.
But I have a question...
What does that have to do with Open Houses? Almost 100 percent of the people that come to my Open Houses found out about the Open House on the internet. Sure, there are some drive-bys, and a few nosy neighbors... but Craigslist and a few other local sources can draw some traffic.
What do you think those buyers that are finding houses on the internet are doing next?
Some of them are calling the agent they know from church... many of the rest are actually getting in the car and going to drive by houses. And, if they find out that there is an Open House happening or coming up... if they like the house, the come in.
There isn't pressure or perceived pressure for many of these buyers in an Open House atmosphere. They can see the house and not really have to "hire" an agent and get committed. They might get a Buyer's Agent AFTER seeing a house they actually like... or they might not. But, they aren't hiring an agent first.
I find I have to train some of my buyers NOT to go to Open Houses if they can't help it, because some Listing Agents think that if they passed within 100 feet of someone, they own them (I don't share that opinion, holding an Open House doesn't create a relationship with people that step in the yard). And if they go they are instructed to tell the person holding the Open House that they are working with an agent. Usually, we see the houses before they ever come Open... IF they ever come Open...
But the simple point is...
Technology HAS changed, but people haven't changed completely. They like to SEE the houses, even after seeing 100+ pictures (yes, I have listings with 100+ pictures and multiple videos). They like to walk around in them. Sometimes they don't have a Buyer's Agent yet. Sometimes they don't want to work with the Listing Agent, sometimes they do. Sometimes they want to look and not bother their Buyer's Agent... even if their BA tells them over and over that it isn't a bother.
And a little note for the Sellers...
Don't feel too ripped off if your Listing Agent isn't an Open House fan. The chances of a particular home selling because of an Open House are about 2%. Lee's post was SPOT ON in that regard. The main reason Real Estate Agents hold Open Houses is to find more buyers... Then we find homes that actually work for their needs.
Bottom Line
Selling a home at an Open House is a lightning strike. Finding someone that might be interested in buying a home is a bit more probable. Of course, depending on the market traditions and weather and a score of other variables, they can be an absolute waste of time...
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