I read this and was astounded at what people do!  I don't hold open houses if I can help it. 

Hawaii...different story...different neighborhood.....different market. First and foremost, I do my own Open Houses....and I don't do both sides so obviously I am doing it to sell the house....which we all do here. It not only is great exposure (it's like a Sunday event here) but yes...it is an opportunity to pick up a buyer or seller....if it is a buyer who is interested in the home....I refer to another agent.

I guess in your area they just are not a go especially when they are going around looting...yikes!

Hi Simon.  I think a lot of agents till do open houses because the sellers expect them.  If you tell them exactly how uneffective they are, then the sellers may just think you do not want to do all you can to sell their house.

Oh, my!  Simon, you just can't make up stuff like this.  Thanks for posting this as a warning to sellers and to agents. I can see a seller suing the agent for negligence in allowing a stranger to wander through the house and "help themselves."  They certainly did, didn't they?

So, some reasons for NOT holding an open house:

1. They don't sell the house you are holding open.
2. You are inviting strangers into an empty house where you are all alone and may become the victim of a violent crime.
3. You may be inviting thieves in to rob the seller.

In spite of these facts, agents will still hold open houses to "possibly pick up a buyer for another listing." What about putting our clients interests before our own? 

These are 3 reasons I give my sellers to educate them as to why an open house is not in their best interest at all.

Every market area is different and every agent has different skill sets ... some agents are great at meeting people face-to-face and hitting a repore with the person and setting that initial appointment ... some are not.  What ever it is that you do that brings you appointments and deals you should do more of.

It bothers me that people blast Open Houses ... for some agents it works (keep doing it) for others it does not (stop and try something else)

Dan, I'm really confused as to why you are so passionate about not holding open houses--this is just one instance of a robbery out of how many??????      There was a case that a fellow agent had stolen some medications during a "Broker's Open."  Should we not do that either?  There will always be bad apples everywhere.  That's your choice, isn't it to NOT hold Public Open houses---it doesn't mean it's not a good idea.  I would say that 90% of the buyers that I talk to at my open houses are seriously looking and this may or may not have been the house for them but it's sure worth a look.  I did the same thing when I was not licensed.  It's not a bad thing.

Hey, I am on your side...I would rather do something more productive with my time than hold an open house.....but some sellers, believe that it will cure all.....

If you don't want to do open houses, don't do them.

If you want to, do them.

The same can be said of the many various real estate activities.  If you want to work with sellers only, great.  If you want to work with buyers only, great.  If you want to advertise in magazines, great.  If you want to advertise in newspapers, great, If you want to advertise on the radio, great.  If you want to advertise on the back of a bus, great.

Sorry for the delay in responses folks - been busy not doing Open Houses! OK - here we go.......

Jeffery - We were good till you said "if I can help it". Not sure exactly why you wouldn't be able to simply not hold them.

Sally - Interesting about it being the weekend event in Hawaii. The fact still remains that 1% of homes are sold through OH activity. Maybe what's going on here on the mainland simply hasn't reached paradise yet.

Venice- I am not sure if you are a new agent or not, but educating your sellers is a key part of what we do. It used to be that sellers insisted their listings were in the MLS Book. Well..... those ahead of the curve made sure those sellers were educated. Now Open Houses don't sell houses and so your sellers need to be made aware of that. As I said in another post, they are hiring you for your expertise. You should point that out to them. If they don't want your expertise then why exactly are you there?

Simon,

I'm sorry but in my neck of the woods you cannot get away with NOT holding Open Houses (They're only held once a month and are in a gated community with 24 hour security) and I feel that this posting (to the public) puts a stereotype on "All Markets" when that just isn't the truth.

Also - I've posted and have seen many, many other members posts regarding their knowledge and acknowledgement of the 1% potential of actually selling the home that is Open --- agents aren't "Lying" to their clients and to again, put a stereotype on "ALL" agents is just not very professional let alone true!

Now mind you --- some markets probably do need to be more careful and the agents that serve in those markets know whether or not it's a good idea to hold these Open Houses so I do understand why the article caught your attention but I just truly feel what you are telling the public is that "All Agents who still do Open Houses" are bad people and that they shouldn't be listing their home with them --- and that's just not right.

We're experiencing lower number of sales...not too much lower prices. Not too many foreclosures and short sales although it's unusual we have some. It's always been a weekend event. Our neighborhoods are close together and from one to the next is minutes.

I still say...neighborhoods and different markets determine the use of Open Houses.  I can't stand when the news comes on and they say NATIONALLY....the market is bad...etc. etc.  And then our local news comes on and says..hey, this month prices went up again...last month they went down a little. It is definitely about neighborhoods here.  Our Ewa area has LOADS of inventory and prices gone down. My area (Mililani, Waipio Gentry and Waikele they're about the same...which means up from last year) ....so I don't even try to go figure :)

I couldn't agree with Jennifer's comments more. Broad-brush statements are bad for the industry overall and no matter how well you may know your own market and what is or isn't effective in that market, NOBODY HERE knows everything about every other market. Making such a blanket statement is ignorant and reckless.

What I really can't figure out is this anti-open-house agenda that certain people around here seem to have. Is it THAT big of a deal?? Sheesh.

I see some brokerages that constantly advertise open houses in the Orlando Sentinel.  Some are advertising 10 or so every single weekend.  I wonder how well they are doing with getting anything sold.

We have an open house policy in our office that requires us to give written notice to sellers of occupied houses to remove or lock up all their valuables.  We also require our agents to have at least 1 other person with them at all times during the open house.

You are right though, the sales resulting from an open house is only a very small percentage.  I tell my customers that the advertsing that sells a house is (1) MLS (2) internet ads, and (3) signage.  Nearly every other advertising is just dumb luck.

Jennifer - I can only assume you did not read the entire blog.

1. They sell 1% of homes. In anyone's mind that is a terrible statistic.

2. As an agent you are personally at risk.

3. Theft from Open Houses is a lot more common than you might think. Do you ask for ID or do you just accept the word of the person who says his name is Joe Smith?

With a 1% success rate I would indeed urge sellers to seriously consider not hiring an agent that suggests an open house. Just as I would urge sellers to throw out any agent that brings in a Zillow estimate to a listing presentation!

Sally - thanks for coming back. Of course all real estate is local and you are right when you get upset at the media for giving national news. Here in Florida we regularly see coverage of consumer confidence. National numbers go down and our local news covers it. Numerous times as I have highlighted on my radio show, 24 hours later the Florida numbers come out. I cannot tell you the number of times Florida's consumer confidence goes UP against the national trend. Does it get local coverage? No. Having said all that, Open Houses are now mainly being held for Realtors and not for sellers. Sure there will be some spots where that is not the case, but they are becoming fewer and further between and ultimately we will encounter the law of diminishing returns - at least for the sellers.

Ryan- I have seen you on another blog accuse a highly ethical man of personal attacks. Apparently I am ignorant and reckless. I wonder where that fits into "Ryanworld" in terms of personal attacks?

As for what we DO know - we DO know that open house activity accounts for around 1% of sales. Therefore one has to ask why agents do it. When we add into that the story above - THEFT - we have to warn sellers that this is not only an idea that 99% certain will not sell their home, but that they are placing their valuables at risk. And if you tell them to remove them do not for one second think that will protect you. Also, no one would even think of removing an expensive bottle of champagne!

Rob -  You make extremely valid points. Thanks for stopping by.

Dear Ryan - Please refrain from inflammatory comments like labeling Simon's opinion as "ignorant and reckless."  I too have seen your comments on other posts where you resort to name calling and what in my opinion are insulting remarks.  I do believe that Active Rain has a "block" feature for dealing with just such members. 

Strong opinions and defending one's opinion is the American way.  I wouldn't have it any other way.  But resorting to mud-slinging only damages one person.

Actually Simon, I read the entire post -- and commented briefly on the 1% because I have heard that this IS the actual number of open houses that actually result in a sale! BUT the real message from my comment was regarding your "lumping" standards (not the 1% issue).

I'm not bashing you ... and respect your opinion on this, I just felt it was very one sided and that you should not have said what you did in regards to "not hiring an agent" because they use open houses. If the agent lives in an area that DOES these regularly ... it doesn't make them a bad agent (but that is what your post insinuates).

And as for "Theft" ... walmart deals with shoplifters everyday ... but you don't see them turning away customers based on something they do (that other customers don't do)! Why? Because their business would go UNDER! Instead they put "Theft Prevention Techniques" in place and educate their employee's. Rather than bash "Open Houses" why not encourage EDUCATING our agents instead!

Just remember boys that when you point a finger, there are four others pointing back at yourselves. The "other" post (only one, not many) is there for everyone to read and come to their own conclusions about who began attacking who's character. You two simply have an agenda and can't stand it when someone has a differing opinion. And yes, blanket statements are ignorant and reckless. That's not a personal attack. It's an attack on your approach.

Jennifer- I too respect your opinion and of course you are entitled to it. We disagree and that is OK, but I think the numbers speak for themselves. As for the WalMart argument, I don't think it stands up. If WalMart knew that every time they opened their doors there was a 99% chance they weren't going to sell anything, I don't think they'd be opening their doors at all. Also, your sellers' home is certainly not WalMart and I don't think they would regard "shoplifting" as part of the cost of doing business. Finally - yes I do indeed believe that in today's world sellers should be very wary of agents who recommend open houses because the numbers simply don't stack up.

Ryan - I'm a big boy and can certainly deal with your personal attack on me. Your double standards however are a joke. I have no agenda other than educating the public about the realities of 2007 real estate. As I have stated before, if there is a 99% chance that you are not going to sell a house through this method, then why would you place the house, its occupants and contents at risk? And remember - if someone gets hurt during an Open House, who is getting sued? Is it the owner? Is it the real estate agent? Is it both? And for what if you are the seller? A 1% chance of a sale? Give me a break!

Judy - You ask, "Dan, I'm really confused as to why you are so passionate about not holding open houses...? Gee, I guess I just want to make people mad at me, of course. Now, the serious answer...

At Little background first:

• I have been a Realtor for 14 years in Manatee County, Florida. 
• I sell, on average, 100+ homes each year.
• I am a Broker/Owner and team leader for my real estate team.
• I am a Past President of the Manatee Association of Realtors
• I am a certified Ethics Instructor, by the Florida Association of Realtors
• My brokerage team was awarded Small Businss of the Year by our local Chamber of Commerce
• I am a GRI, CRS, and E-Pro, CIPS Candidate, and Resort and Second Home Specialist candidate
• Founder and President of the Bradenton Real Estate Club
• Investor and Investor-Instructor
• Ezine Article Expert
• ...I'll stop here

I share my "position" about Open Houses and all sorts of business practices for one purpose and one purpose only.....to help other agents grow their business.  I have learned what works and what doesn't.  I don't know it all, but I think I have something to contribute. 

Simon, I agree with you on open houses and can add a couple of other reasons at least for myself. Around me there arte so many open houses every Sunday that even in my township it would be impossible for anyone to see them all.When you talk t6o other agents though most of the time you have all had the same people attend. Statictically when you see more than 5 to 7 homes in a given day they all become jumbled. Its just too many. Also I do my best to keep Sunday the Lords day. That being said My backgroung is in foodservice and we always went by the motto "The customer is always right" so if a client really wants us to do one even after i tell them the reasons why thet are a waste of time I fell obligated. As a by product my first sale was from a client I met at an open house I was siting.

Simon I just read through Dan,s post. Wow, but I can think of one time when open houses are a good Idea, My father lives and sells realestate in a retirement village. He doesn,t have a cell phone can,t work a computer and doesn,t take pictures. Most of his clientele are  senior citizens many who havent caught on to the computer age. He does do open houses and is top selling agent in his office.

There are always exceptions Hugh, but obviously we are talking about main stream real estate here. The theft problem however is also something your dad should be aware of as is the safety aspect. In terms of your previous comment, I don't agree that the customer is always right.

Example: "Yes Mr Krone, your broken arm will have to be re-set under surgical conditions."

"OK Dr, but I don't want any sedation and I'm not sure you need to sterilize the equipment."

"OK Mr Krone - the customer is always right!"

Now I know I am going to the extreme here, but the bottom line is you are being hired for your expertise. Your job is not only to sell the house, but to educate your client as to how that is going to happen. If the client said I want you to get 10,000 fliers and hand them out on a freeway rest area, would you do it (one of mine suggested it and obviously I did not comply)?

Wow Simon, I've heard that open houses are no longer a good idea, but I had no idea this sort of thing happens

Peggy - it's a dangerous world out there, but they are simply no longer worth holding in the main.

Simon I do agree with you about 98% of the way on this but Damn you are fun to argue with. Hope we get to do it in person some day. Its especially fun arguing with people with whom you agree with about most things.

The reality is the Open houses are more the agents to get leads than selling the house. When a client wants me to have an open house, I ask then if my time is better suited in sitting in the house on a Sunday for 4hrs or actively making phone calls, working with other agents, and conducting research that will access their position in the market.

Great article.

Simon and All - Simon and I are in agreement on the ineffective of Open Houses. I keep hearing agents say, "But they are a great way to find buyers."  Not so according to NAR Research and top agents remarks in this forum.

I have written a new post on this on going topic. You may be surprised and you just might change the way you do business when you realize that...

If this doesn't convert you to join Simon and I then I guess you'll just continue doing business as usual. 

With Simon's permission, here is the post: The Origin of Open Houses and Why They Don't Work Today: The Last Word.

Simon,

I do my best to not have them.....I let the Seller know the only reason to have them is for me to possibly get a new Buyer...

I too see no other reason to have one.  The dishonesty of some is a better reason to forget them.

Simon,

Your comment on Dan's post about "having my bumps felt" brought me over here.  I'm subscribing to your blog, and wish I could podcast your radio show.  Can I do that?  I'll park on your site for the answer.

Mike in Tucson

Those two ladies who committed the crime could have severely hurt or even killed someone. If you do have an open house it helps to have 2 bodies from the brokerage helping one another.

This is just unreal. It's amazing what people can do when others open their homes to them, both literally and figuratively. Thanks for the post, Simon.

Brian Wilson, Zolve.com 

Simon, I had not done an open house for years when a seller talked me in to doing one earlier this year.  Then someone wrote a post about the safety issues and that really had me re-thinking doing open houses.  I don't know about other areas of the country but in our area I just don't see them as an effective use of my time.  I have NEVER sold the house I held open and then there is the safety issue like you mentioned.

Mike- welcome to my blog. Hopefully you will find lots to interest you here and won't need your bumps felt! :)

Trey - You are right about two people - better still not to hold them.

Brian - Thanks for stopping by and for your comments.

What's an Open House? Those were from the 20th century wern't they?

Marchel - exactly!

Joey - Uh huh.

Perhaps readers of this blog might well be interested in my latest post - Are agents responsible for the state of their own markets? Controversial? Sure it is. Accurate? I think so.

Simon,

I have sold Real Estate in NY and now in Florida and from my 12 plus years experience..I have ran many here and there and personally no matter how many I have done...there was very little success. I think I might have sold one in my time but beyond that my market in NY was luxury condos and townhomes and they were all in gated communities. In my part of Florida it isn't any better as a matter a fact the same problem occurs here with gated communities it seems not to help...especially when you can even put a sign up in or near certain neighborhoods.

I have no idea what it is like in your area...this is just mine and most in my area will probably agree with me unless there is some special secret I am unaware of. I even wrote a post a long time ago called I want to run an open house but I  can't...it really centered on my trying to do it for my clients but when you are limited in getting it out there ...you can't do much.

If we are lucky we get 2 people that is good. I have even scheduled catered affairs for brokers open and trying to get Realtors (R) to come was hard enough...I had to call 40 just to hope that 10 showed for that. I can't speak for other people or other markets but mine is the way it is. As far as the valuables...thats the owners problem and they should know better than to leave that around if they are going to expect people to walk around without the agent. And the agent should have told the seller that too. That's what i would do if I knew there was that type of expensive thing around out in the open.

As I have posted in other areas, I'm not a fan of open houses. However, I know of agents who are and have had success with them. Every piece of advertising we do to market a home is also done with the hopes to generate leads, leads who may not buy the listing we are advertising, but may purchase another home using our services.

So for the agents out there who are doing them and are having great success...GO FOR IT!

For the agents who don't like them, don't do them! :)