How Effective Are YOUR Open Houses?

Statistics always depend on from where the information is drawn, and how it is interpreted.  The effectiveness of open houses varies, depending on many factors, and it would be difficult for us to come to a consensus here on Active Rain.  As for my experience, I've sold apartments to people who have visited my open houses; but never the apartment where I first met them. 

First of all, when the hell did you join RE/MAX? Wow! And second, I haven't done an open house in about 3 years. They are pretty worthless in this market.

I ran the numbers for me to see if its worth while for me to do open houses... I said if I do 2 a month and spend 5 hours per open house. Thats 10 hours a month. Thats 120 hours a year doing open houses. The average commission check is about $8000 here. So if I only picked up ONE buyer or seller from it. Thats 8000 / 120 hours  that works out to be $66 an hour! Not to shabby! Anything above that is just extra money in your pocket. So YES... Open houses are worth it!

Great Post! I agree that Open Houses are worth it for a Realtor, but not for the reasons that most homeowners think!

If your looking for buyers its good, not for selling the subject home. if the home is priced right and in the right neighborhood then it will sell regardless of open house, I tend to do well with sign call conversion.

Kathleen....Lorraine and I have a team just to man our open house events every weekend.....we never miss a weekend except for MAJOR holidays.....our new construction is sold because of the open house events....on resales, we hold one on the first sunday of the listing and from that we have received offers, more listings, and buyers for other properties....the most important benefit has been having future sellers visit to see how we market before we are asked to do a listing presentation....I market with direct mail postcards in advance of the open house inviting people within a 50 home radius.....it's a great marketing tool....I could write a book about the advantages of holding a home open to the public....it's one of the best ways to network and prospect for new business....and yes, on occasion, the home will sell from the open house....the sellers want them and we take full advantage of that.

I have an open house once and that's the first sunday of the listing.  I tell the seller at the time of the listing that they will get one by me and no more than that.

Actually 13% from a yard sign

Three is a win in my book. Good Job. Their perception is that this sells the home. It's just not the reality in some areas.

Agree with most all comments above. There is one reason I love open houses; it fulfills a promise I make to use every marketing tool available to sell my clients home.

If you position the open house to be the first showings allowed, it generates a bigger market for the home.

During my 25 years as a Professional Realtor, I can tell you that Open Houses have been a great part of all my marketing activities. I have been able to show a couple of renters how to buy the house, by simply showing them options that they did not know. I have shown potential buyers how to convert a porch into another room. These are only two examples of what can happen when somebody wonders into an open house. For me, Open House Sell!

Antonio

Open Houses can be an effective use of time when you have 3-5 parties come thru in a 2  hr. block !

Depends on a lot of things. Your location, price, how you advertised it.  The NAR stats are a big help, but the fact is, an open house is something that the sellers can SEE us doing.  Even though we do so much, sometimes, people think you're only working if you're doing an open house.

Kathleen, what an interesting post and your thread of comments as events unfold! I think it is phenomenal to have not just one but two interested parties at an Open House. Your Sellers just don't understand the process or they would be ecstatic. Congrats on the second showing for your OH and wouldn't it be great if they fall in that 3% that will buy from an OH this year :)

As for our success, I do think that OHs vary from region to region. Our Sellers are not much in favor of Open Houses - they know the stats, too - so we don't do many. When we do, it's really hit or miss as to whether you have a good turnout.

I do not perform open houses as part of my standard list of services. Each market is different. They simply are one of the least effective ways to market a home, and very inefficient with my use of productive time.

I don't do open houses at all.  I'm upfront with my clients that open houses are primarily for lead generation and do not sell property.  I know there are many posts that have been written that feel differently, but this has been my experience in my market.  The bottom line is buyer's work with agents, agents show properties and my well priced listing sells.

Don't let the old hum drum negativity into your world. If you have a open house, by dern you better count on selling the house! Read post here on the rain......how to have a successful open house, then skip over to........the power of your mind and positive thinking. I'm having an open house tomorrow. Well, actually a tea party. The home is built in 1900's. I've sent out hand written invitations to the "tea party" My 7 year old is going to be dressed in her best tattered flower girl dress and heels serving in her glass tea cups. My mom has invited any and all of her bff's that may know some one remotely interested in this old house. I invited 80 of the best agents of the who's who's in the area. I've got glass platters and cake stands for cookies. Signs are out in force. I'm packing a contract. In this market I can't afford any more negative thinking. I choose to believe this will lead to this home sold. If not I will take whatever positive comes from it. Go hold your next open house with a vengeance........it may just end in a contract!

Typically open houses are great tools for agents to pick up more buyers and sometime sellers.  Homes do not typically sell at open houses.  However, I do find that I have more showing activity before or after an open house.  Great post