Open Houses: Stop Lying to Your Client!

Love your post Lenn.  Personally, I have not had good luck with open houses but it's still a part of my brokerage's marketing plan, and I will be the first to admit I'm still learning how to do open houses successfully. I'm willing to say it's ME not working the Open House correctly, rather than say "Open Houses don't work."

I think it's rude to criticize how someone writes or thier choice of words.....but in this case I commented on Ms. Diamond's post that I disliked her choice of the word "lying". 

I think we went through this last week, Lenn, but like you say, Mitchell made a great list! The only thing I would add is that the value of Open Houses is cumulative and experienced over time. There are a few communities that I farm and list in. There are hundreds of communities my office covers. The Open Houses that we held in 2009 have attracted buyers to particular communities that eventually bought in 2010. The Open Houses we hold this year may create buyers for next year. It's not a "picking up buyers" mentality, it's the idea that each of our listings (and their agents) has to do their fair share in how we bring buyers out to our area.  People still drive around on nice days to look at the yards and parks, schools and stores, malls and rec centers.  If an agent takes a long term view to being a credible presence in the community, open houses certainly do "work".

Lenn, I have worked many open houses since coming into the business.  Have I tried to sell the home I was holding open?  Yes.  When it became apparant that the buyer wasn't interested in that house, I added the buyer to my database and did sell them a house. 

I see agents in my office holding houses open every single weekend until it sells.  They do this to appease the seller, not because they actually think the house will sell at one of these open houses.  They, as the listing agent, don't work the open themselves.  They, instead, send out a blanket e-mail that looks something like this:

"LOOKING FOR BUYERS...COME WORK BY OPEN HOUSE ON SUNDAY!!"  Hmm, don't you wonder if their sellers know this.  I'm sure they don't.

I have responded to such e-mails and worked them why?

1. The home is priced right for the neighborhood and actually has a chance of getting an offer.
2. The home is staged to sell.  In other words, it looks like a model home.
3. It hasn't been on the market for 150 days and already had 45 open houses.

In a seller's market, I think you actually have the opportunity to sell a house at an open.  In this buyer's market, everyone is being more cautious and doing lots of homework before buying a home.  Can you sell a house at an open?  Yes.  Have I done it? No (but I have sold them another home).  However, this can be different in different markets, as already stated above.

Lenn I am going to have to disagree with you and everyone else 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.

Lenn... interesting twist of things... I have heard that open-houses work in some areas and don't work in others.  I personally would think that it comes down to a few different things..  the market itself (timing) ... the realtor, and the house itself...  I think Bill Gassett makes some good points.  I think this topic can be looked at from many different sides...

Lenn, I think that Jim Weichert sort of has the secret to a successful Open House.  Back when I worked there (briefly after he bought Shannon & Luchs) he installed helium dispensers and thousands of gaudy yellow balloons at each office.  And on our way to Opens, we would stop by and pump up the balloons and tie them to our For Sale signs.  Once I held an Open with signs, a mailing and a post ad with balloons and had 80 people come through.  The agent down the street at an Open for a similar property had 6.

It is possible to make an Open not work.

Lenn, I just posted an open house post. Not another argument whether open houses work - but how to make them work by working them.

Great post! I WORK open houses and have had some great successes in a limited amount of time. Count me in as a believer that they work if you work them!

Lenn, I wrote a blog about "How to Hold A Successful Open House."  While it's not an activity I regularly do, I appreciate that my clients do it and as such I will do my best to teach them how to do it effectively.  I would love for you to take a look and offer any other additions to the list.  Have a great day!

Agent in my office had an open house with 45 visitors yesterday and an appointment today to write an offer on it herself.  I am green with jealousy.  I do not like having crazy busy open houses like that but...   

Mitchell's post Sunday was good.

While everyone here comments, I'm going to hold an open house...it's where the buyers are.  I don't lie to sellers and never have.  They know why open houses are important.  Open houses have been and will continue to be a staple in this crazy business.  Not to mention, they give less experienced agents an opportunity to learn the "language" of real estate.

I think the only reason there should be an open house is if there is no lock box. And that "no-Lock Box" issue is a WHOLE other blog!

Stephen