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5 REASONS OPEN HOUSES GENERALLY DON'T SELL HOUSES

By Ken Tracy

Real Estate Agent with Coldwell Banker Residential

August 28, 2010 12:04 PM

In my five years in the business, I have sold one home via an open house. Not great odds, but one is better than none...

There has been much debate on Active Rain the last few days on the topic of open houses...

It seems the vast majority of real estate agents don't like hosting them. That is fine by me. Different strokes for different folks...

I host open houses for three reasons:

Sellers generally want them.
They offer lots of marketing opportunities for myself and my listings.
I will be meeting new people/prospects/neighbors.

Open houses are one of my most effective marketing tools. However, I understand the challenges of actually selling a home via an open house.

I thought I would take a look at why open houses generally don't sell houses...

Keller Williams

5 Reasons Open Houses Generally Don't Sell Homes

Tire Kickers
Most "buyers" that attend open houses are still several months away (at least) from actually buying a home. They are gathering information. When they are ready to buy, they contact a real estate agent to show them homes.
Price
No amount of marketing will sell an overpriced home. If your home is overpriced, don't expect an open house to help.
Timing
I usually host open houses 3 to 4 weeks after listing a home. My best priced listings are usually under contract by then.
Today's Real Estate Market
The real estate market is challenging right now. Most open houses struggle to get more than a handful of visitors, and without traffic, an open house won't work. 5 years ago things were very different.
The Internet
Buyers have so much information available today at their fingertips. Pictures. Virtual tours. Links to schools. Etc...

I hope this clears the air just a bit on the issue of open houses. If you don't like hosting them and your sellers are OK with that, great...

But if you are still undecided, I would suggest you use them as part of your marketing package...

You might be surprised with your results.

Ken

For more information on open houses, read my post "Two Keys to Making Every Open House a Success"

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Harry Logan

RE/MAX executives realty - Winnipeg, MB

Your Satisfaction is Guaranteed!

Great Post Ken!

When I do an open house I am genuinely trying to sell that house, but with the actual odds of it selling through an open house being low, the additional benefits that you mentioned can end up making it pay off down the road!

Aug 28, 2010 12:24 PM

Nogui Aramburo

Linda Craft & Team, REALTORS® - Raleigh, NC

Real Estate Professional in the Raleigh Area

Bring some work with you. That way you can be on the look out for visitors and get a head start on Monday.

Aug 28, 2010 12:46 PM

Ken Tracy

Coldwell Banker Residential - Naperville, IL

Helping clients buy and sell since 2005

Hi Harry and Nogui. Thanks!

Open houses are a great opportunity to catch up on other work when slow. Blogging, paperwork, emails, phone calls, whatever...

Why do that stuff at the office when you can do it at an open house?

Thanks again,

Ken

Aug 28, 2010 01:04 PM

Paula Swayne

Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA

Realtor-Land Park, East Sac & Curtis Park -Dunniga

Hi Ken!
I agree with all the reason that you should hold an open house, but have a different perspective with a couple of your points about why you shouldn't.

I hold my listing open the very first weekend it is on the market. I invite the neighbors to an exclusive neighborhood open an hour before the public open. It makes a big impact and I usually have at least 30 and as many as 60 people through.

The very fact that buyers are on the internet doing their own homework is the very reason that open houses work. The buyers need access before they have even hired a Realtor...why not be the Realtor that they meet and like at an open house?

I agree that generally speaking, open houses don't sell that particular house, but there is no better way to meed legitimate buyers and sellers (don't forget...sellers might be out there to see how you do and open to decide who they are going to use)!

Aug 28, 2010 02:03 PM

Robert Schwabe

Herron Real Estate - Orange Park, FL

Orange Park Real Estate

Ken - Great post. I generally don't like doing open houses. I guess I need to change my attitude and have fun doing them.

Aug 28, 2010 03:52 PM

Steve Shatsky

Dallas, TX

Hi Ken... I met one of my most loyal clients through an Open House. You never know who will walk in the door!

Aug 28, 2010 06:20 PM

Bill Gassett

RE/MAX Executive Realty - Hopkinton, MA

Metrowest Massachusetts Real Estate

Ken I am certainly in the camp that can see for my own eyes that an open house is one of the least effective marketing efforts. Serious buyers are most often with Realtors. If someone truly wants to look at a home they are going to schedule a showing. Will not holding an open house cause the property NOT to sell - NO! I wrote a blog a while ago about this subject...Public open houses are a waste of time for sellers!

Aug 29, 2010 12:49 AM

Ellie McIntire

Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD

Luxury service in Central Maryland

Ken- Although I have only ever sold a listing from an open house once, I have had MULTIPLE buyers who I met at my open houses and have closed transactions.

Aug 29, 2010 02:22 AM

Ken Tracy

Coldwell Banker Residential - Naperville, IL

Helping clients buy and sell since 2005

Hi Ellie, Bill, Steve, Robert, and Paula. Thanks for stopping by.

Hmmm. We are certainly getting some different views on the topic.

Not surprising....

Thanks again,

Ken

Aug 29, 2010 03:43 AM

Craig Daniels

Tech Training for You! - Staten Island, NY

Technology Instructor/Project Consultant

Ken - thanks for your posts on open houses - gives some good food for thought - getting visitors is the key - I'm trying to get attention via craigslist (gotta like that site, my namesake) - I did this ad this morning trying to see how much attention craigslist might bring to an open house

Aug 29, 2010 04:17 AM

Damon Gettier

Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA

Broker/Owner ABRM, GRI, CDPE

Ken, you are a better man than I! I have never sold a home from an open house......I just don't like spending my days sitting in a house hoping and waiting.

Aug 29, 2010 02:48 PM

Petra Norris

Lakeland Real Estate Group, Inc. - Lakeland, FL

Realtor, Lakeland FL Homes for Sale

Ken - Open Houses depending which market are you're in. In my area most homes are sold through online advertisement and web presence. I do my marketing based on its effectiveness and open houses is in my opinion and from research the least effective way.

Aug 31, 2010 02:08 PM

Sham Pathania

SAVE MAX FIRST CHOICE REAL ESTATE INC. - Mississauga, ON

Ken - In my opinion, it's just marketing and building new contacts. There has not been much success in the last 5 years. except the only lead which I got in June. It was a listing !

Sep 04, 2010 06:07 PM

Fran Gatti

RE/MAX Integrity - Medford, OR

Managing Principal Broker - RE/MAX Integrity

The only folks that attend my open houses are people who are looking for something to keep them busy for an afternoon. What a huge waste of time. My clients aren't to hip on having the "public" into their homes. Open houses are for the agent IMHO.

Sep 22, 2010 05:41 PM

Judith Abbott

Coldwell Banker Residential - Dallas, TX

I have at least two Open Houses per month and have for as long as I have been selling real estate (since 1998). In all that time, I have sold many, many properties to people I have met at an Open House but I have only sold two properties that I was holding Open.

The thing I find fascinating is that clients now have an expectation that Open Houses are going to be my primary marketing tool. They have gotten that expectation from HGTV. What I keep asking is where is it in these United States that Open Houses work the way they are portrayed to work on TV?

Oct 15, 2010 07:21 AM

Steven Levengood

Remax Cornerstone - Lebanon, PA

In 12yr I only ever sold one home from an open house but open houses have been a great resource for buyer leads and even some listings . My best friend is someone I met at one of my open house and now my and his family are very close

Jan 27, 2011 02:24 PM

Ken Tracy

Coldwell Banker Residential - Naperville, IL

Helping clients buy and sell since 2005

Hi Steven, Judith, Fran, Sham, Petra, Damon and Craig. Thanks so much for reading my posts!

Bottom line is sellers want us to have them. Give them what they want!

It is great for business too! Judith, way to go! Two a month! Great...

Thanks again all,

Ken

Jan 27, 2011 02:53 PM

Alan Atchley

Atchley International Realty, LLC - Sarasota, FL

Great blog. I find it true that my open houses usually don't sell the home that is having an open house. However, they have helped market me and get listings with other neighbors. I have also received leads from them that have converted into closings on other properties.

Mar 22, 2011 03:23 AM