Open Houses: Stop Lying to Your Client!

Rebecca, I feel there is a variation on the effectiveness on Open Houses that is commensurate with the preparation and marketing of it.

Rebecca,

They are a great source of leads and I tell my sellers that. However, I have picked up ywo double-enders off open houses and one open gave me 5 additional ends. Besides, it makes the sellers feel good.

Rebecca,  We agree with you 100%.  We have been discouraging sellers from wanting these things for years.  Generally they are a total waste of time.  Of course if you have a good book on marketing or business development you can get in some good reading time at most open houses.

Thanks for writing. The feedback was great reading.

It's really interesting to see all the different opinions and experiences here. In our area buyers ignore open houses while in others they make it a point to attend... Just differences in customs from area to area.

I think a lot of agents just want an excuse for not doing open houses.   I always tell my sellers that people coming through their open house may buy something else, but people going through one of our other open houses may end up buying theirs.  The idea of an open house is for the realtor to meet as many buyers as possible....the more open houses we have, the more buyers we will meet. The more buyers we meet the greater the chance of a sale...quite possibly yours.

I agree with you on this subject. Realtors' don't sell homes...homes sell themselves. If someone is interested in buying a home they will schedule a showing to see it!!It is like people are saying that the cause of a home not selling is because an open house was not held...totally false! The NAR stats clearly show that this is not the end all be all of Real Estate marketing. Most serious buyers are with Realtors. In fact I have written an article about public open houses are a waste of time for home sellers.

Ok, I have to agree with Robert and Jim (I appologize if left anyone else out, didn't read through all comments)

I always explained to sellers that the chances are slim that your buyer will walk through that door between 2-4 on Sunday HOWEVER, your buyer could be just down the street at another open hosue meeting an agent and discussing their needs, that agent could be printing out your listing to schedule a showing appointment. Open Houses keep the industry going, agents meeting buyers, buyers narrowing down locations, wants and needs. I encourage sellers to be a part of that.

Marketing is ALL about networking and getting the word out and open houses do this, I have had two occasions where the neighbor came the open house and then told a friend/co-worker about the house who ended up writing an offer.

Just because someone doesn't come in and say "I'll take it!" doesn't mean it wasn't worthwhile for a seller. Open houses serve many benefits to sellers and not just the marketing and word of mouth but also feedback, you can get a very good idea of how a house shows by buyer comments at an open house.

Once all of this has been explained to a seller then they can decide if they want to do them.

I also don't know of any agents that tell sellers they work. Most agents I know either chose to do them or not but they all tell sellers not to get their hopes up.

Of course, there's always the possibility that it could sell their house, so that's not a lie, but the probability is slim to none.  You're right, the sellers need to hear that up front.

I have sold one house in 8 years and of course found a few buyers looking to buy. However, just having returned from the Florida Realtors Meeting in Orlando FL I I now have stats and info to justify to my sellers at a listing presentation the value of using the internet for their home's visibility and marketing. Not to mention the safety factor. I rarely have problems with my sellers insisting on Open Houses. I honestly don't think they really like them either.

I agree with you on the most part that very seldom have I gotten a buyer from an open house that bought that house, but I have done it.

Furthermore If I can get buyer from open house A to buy house B, Buyer from open house B to buy house C, and buyer from open house C to buy house A, then weren't all 3 open houses beneficial to the sellers?

I have sold two homes via an Open House in one case random and in the second case the Buyers were looking at the house on line liked what they saw. I had posted the open house on line and they say that & came to see the house. On the other hand after determining that the home I was holding open was not of interest to then I will talk to potential Buyers about other opportunities. There is also a NAR statisic that states that 70% of persons lookink to buy will drive around to Open Houses, think reticular activator.

I do tell my Seller all of these facts. Some Sellers have tpold me straight up front they do not want them and others say they do.

I have sold two homes via an Open House in one case random and in the second case the Buyers were looking at the house on line liked what they saw. I had posted the open house on line and they say that & came to see the house. On the other hand after determining that the home I was holding open was not of interest to then I will talk to potential Buyers about other opportunities. There is also a NAR statisic that states that 70% of persons lookink to buy will drive around to Open Houses, think reticular activator.

I do tell my Seller all of these facts. Some Sellers have tpold me straight up front they do not want them and others say they do.

I agree completely. As long as you're honest with the client, and they still want you to hold the house open, more power to you!!

I know this is a hot topic, and agents vehemently argue both sides!  I side with you, though.  I did the same thing when I was a new agent, and never closed a deal from it.  It is a total waste of my time, unless I am gambling that some unrepresented buyer might walk through the door to whom I can sell a *different* house.  I also understand that open houses vary regionally.  In some areas of the country, they seem to be much more successful than they are in sunny South Carolina.

I agree exactly.  They are to appease the seller and hopefully find buyers.  Sellers want to know you are doing something to earn your money and this is one thing that they see you doing.  Thanks for being bold enough to spell it out.

Open houses are also open to the criminal element out there as well:

http://abclocal.go.com/wpvi/story?section=news/crime&id=7605341

I agree that open house success is regional. Although I realize it was a rare occurance, I happened to sell a home through an open house, my first weekend in real estate. The home was in the right area, priced to sell, and I worked the room for leads. Since then, I bring a display board with the local school scores, etc. I also have a folder of information to hand out as well. When I am engaged in conversation and a specific topic comes up, I give the potential buyer something relevant to take with them.  I have my contact information and photo on it as well. I have generated leads from this method.

Excellent post Rebecca!

Check out this interview for Suess Says where the truth is revealed about open houses!  http://youtu.be/DtroBHGFOH4

Do you agree or disagree?