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How do you view Open Houses?

I was reading Mario Trejo Romero's blog this morning, "Are Open Houses Still Worth It?" and found myself evaluating my own "motives," if you will, for holding Open Houses. It sparked my curiosity on how others on ActiveRain use Open Houses or if you do at all. I know that every market is different and mine is very conducive to this approach.

Personally, I see several benefits of using Open Houses as a regular practice:

First, it helps to show the sellers value, validating that we are using every tool available to market their home to the masses. Our goal is to expose our listings to as many people as possible so why wouldn't we use the Open House also?

Secondly, it gives the general public (neighbors included) an opportunity to view the finer details of the home. This may increase a buyers' interest over simply viewing it online as well as generate referrals from neighbors. Yes, I've seen the statistics on how buyers are using the internet today and I'm a firm believer in it, however, it does not replace the 3D effect of walking through the home itself. Buying is an emotional thing and it's difficult to get a buyer emotional about a home with 2D views of a home. Sometimes it's just about that gut feeling and how a home flows. I have had several instances of a neighbor knowing a friend or family member who wants to live near them and giving them the opportunity to see the house themselves will sometimes generate enthusiasm that then transfers to their friends/family. Also, in our market, buyers will often go out driving around looking at homes on a Sunday without their Realtor, simply to make sure they're being shown everything they may want to see (do they not trust their Realtor? That's a whole other topic). I've had instances of this generating interest in those buyers who otherwise may not have seen my listing. I love it when a buyer brings their Realtor back to my listing after the Realtor, for whatever reason, ruled it out as a solution.

Third, (and maybe most importantly) it puts me in front of the public. I'm less likely to sell something if I don't get the opportunity for a face-to-face meeting. I can honestly say that my first year of business, over 50% of my business was generated by sitting on Open Houses. I picked up buyers, as well as listings by being in a house and having the opportunity to meet legitimate buyers and sellers. This is an art that takes some honing but it's not difficult to convert lookers into clients if you have something to offer and they're comfortable with you. In an open house, they know going in that there will be a Realtor there, so most times they're not on the defensive. It's all in your approach.

Fourth, Open Houses give me the opportunity to help a newer agent learn the ins and outs of working with possible buyers & sellers. I think the best thing a new agent can do to grow their business is to sit on Open Houses and meet people. As professionals, we have to constantly learn more about how to earn others' trust. Figuring out what works and what doesn't is often a trial-and-error process so the more open houses you sit on, the more practice you get. It's a numbers game, right?

I know that part of the reason I'm so partial to Open Houses is that I was brought into the business this way. Before I was a Realtor, I was a community manager for a large local builder. I sat on an open house (my model home) daily so it's natural for me. Doing that was my schooling. It's where I learned what to do and what not to do. It's where I learned how to spot the people who want to talk and the ones you have to approach more carefully.

So what are your thoughts, Rainers? I'm interested to know what you see as the benefits or drawbacks of holding Open Houses.

UPDATE: I did a followup post going into more detail of how to hold a successful open. Enjoy!

Posted by Ryan Hukill - Edmond Realtor® on 01/16/2007 05:22 PM

Comments (48)

open house, real estate, oklahoma, buyers, buying, fsbo, fullservice brokerage, home, seller, service

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48 Comments on How do you view Open Houses?

JAN

2007

When I was new, I did them all the time as a form of loading up my database. In 7 years, I have only sold a home once that I was sitting in. I don't really do them anymore, but with our market being slower I am reconsidering that decision.

Good Post! I like to have open homes, I get to meet the neighbors and maybe one of them knows a buyer. And in todays market with so many agents just sending their buyers out there I have an opportunity to sell my house to them. When I'm at an open home - I'm selling that home, not trying to pick up buyers

For me Open Houses continue to be productive. Many agents will say the only reason to do them is to get buyers, but I disagree. Although 99.9% of buyers don't buy the house the come too, the additional exposure of the home is helpful in any light. I held one just this weekend, and had 7 visitors. It was great to speak with people just starting their search who didn't have realtors and how they were going about it, a few even seemed interested in the house. Take it from me, noone wants to work less on Sunday than I do, but in a slower market, any additional exposure you can give to a home is definitely helpful, as well as goes a long way with the seller.

I can see how they are very valuable IF promoted correctly. I think an open house that is promoted to the neighbors, is advertised, and has a sense of anticipation to it can be quite successful.

It also helps if it doesn't rain.

Open houses work! It doesn't matter what your motivations are, buyer leads or just selling the home. It's also a traditional Real Estate practice. Sellers expect it, so the good agents do it. I still hate doing it!

Well said, Ryan. I, too, have only sold 1 home through an OH (but I did both sides and also did a referral later on when that buyer became a seller) but I see the advantages for personal marketing. And some homes here are selling that wasy, so you can't rule them out totally (except forthe very high end homes). I do let sellers know that it is unlikely their home will sell during an OH, and I limit them unless the seller is adament (or the house is vacant). Have had a least 6 buyer clients result from open houses. You have to promote them effectively, plus make sure the materials you provide are top notch, not ugly feature sheets with poor photos and typos (have seen plenty of those).

I think if nothing else, when you are a new agent, doing an open house gives you PRACTICE! Pratice talking to real buyers, real sellers, and most of all real people. It gives you a chance to step into the market, to not only look at the homes out there, but the buyers and sellers. Yes, they can be extremely boring, or extremely productive, you never know.

Open Houses! They are a necessary EVIL! If I can get into a good mindset, psyche myself up about it, plan for it and EXPECT good things I can have a KICK A Open. I notice that when I'm not in the mood and really just want to get it over with, I get just what I expected from it (self fulfilling prophecy) and I end up projecting my negative expectations on anyone that comes into the open. I know OH's can be an excellent source of business from sellers, buyers and referalls. I will do them if I'm low on prospects.
There was a realtor in my town that made a 6 figure income from ONLY doing opens. It was the ONLY thing she did! no mailings, no website, no email, no floor time, no nothing except Opens. If she didn't have a listing, she'd hold someone elses listing open, she did this every Sunday and made a Lot of money.

MY ONLY gripe is Do they have to be on the WEEKEND???

Debbie - Nope, they don't have to be on the weekend (although most are). While most are, try being creative - have an evening OH during the week to capture folks on the way home from work. Can work well especailly in some locations.I know people who have had more success then...and less competition. Just one example...

Jeff

I do hold open houses for some of my listings. YES - they can be an excellent source of making contacts/future clients. But the main purpose is to gain that property additional exposure. It can be surprising sometimes just how little even the next door neighbor knows about the house next door!

I keep saying that although most open houses may not lead to anything, we have sold properties in open houses,and that alone makes it worth while. Your other points are right on...including being face to face with consumers. Do we also pick up buyers at open houses, absolutely, most sellers know this. Great Post Ryan.

Ines

Here on Marco Island, every Friday the Board of Realtors takes out an ad in the paper (well Thursday for Friday) and we get free advertising. Open Houses in a resort community are a different animal. People get board, the weather not cooperating they visit open houses. So 20 or 30 Open Houses are not uncommon. It is just anothe way to get in front of people. I usually take work that makes me feel productive while sititng.

I offer to do open houses for listings, but prefer the home is easily accessible or on a busy street, so it promotes itself. I have met buyers, but you have to coach the Seller that the odds of someone just walking in off the street to buy THEIR house are low.

I like to take something to do, whether it is a phone list, or note pads to write letters, just in case it is slow.

My nieces have received some pretty good open house letters... and I owe them letters again.

I hate open houses! They are not for me. But, it is a great time to watch DVDs... how many jobs let you watch a movie while you work?!?!

Although there are very few neighborhoods on Kauai where open houses are effective, we do have a resort residential community that does not permit "For Sale" signs (crazy, huh) So Princeville open houses can be very successful if you do them on rainy weekdays to attract the tourists :-)

I agree they can be a self-fulfilling prophecy, so as long as you have something to make it fun, just go, be there, and see what happens.

There are endless stories about the agents who hold open houses incessantly and become Top Producers. So after reading your comments, maybe I will change my attitude and try again!

50% of your business generated the first year Ryan? I have never seen such great numbers. Maybe you are good with people.You mention a sort of technique you have.But you are probably right, there is nothing like the real thing and it is an emotional thing when they buy.I ahve found though that even though you will get some clients..most often its not to buy that home you are showing.The whole thing is to have to right home at the right price, then you are going places and showings are going to be fun.As you say it work if you have something to offer and that goes beyong that home. They want you to find a home.They like what they hear from you. They want to work with you.

If you are an agent trying to dominate or atleast get a foothold on marketshare in a neighborhood, I believe that open houses are a requirement. The challenge is doing enough to be seen but not raising expectations too high (with sellers) that they need to be done every weekend.

I like your post, very informative. I'm a newer agent and have thought open houses are not as necessary since so many buyers look online but you make some good points and now that I see it from a different perspective I'm going to start doing more open houses! Not by myself of course, women at my brokerage have had bad experiences when they have held open houses alone. Very helpful, thank you!

Ryan Thank you for another fine post.

I would like to add another approach to a very excellent source of new business if done well and effectivly.

As some of you know and some may not. and some don't care. But I run a web site called www.icouldbeyours.com this is a for sale by owner site that I have run for about 4 years. As you may visit this site you will notice only a few houses for sale we just in the past month changed our domain and our site is brand new. That is why we only have 3 houses on the site at this time. We will add about 30 in the next week. I have a very unique system for open houses that many of you may find as a different approach that works. I am going to add this approach as a new post. Check it out you will be glad you did Thanks again Ryan keep up the good work.

Curt Swearengin

www.icouldbeyours.com

cswearengin@amcapholdings.com

JAN

2007

I would like to develop an "art" in open houses. Right now I could use some really good tips. I have tried advertising on the mls, websites and newspaper. I had an expensensive smorgasborg, but disappointing turnout. Could be because it is an upscale listing and there are fewer potential buyers in that range. However, I want to try again. How do you market your open houses? Trade secrets, please...

I held two opens on a townhouse, the last on Sunday. We have two offers and I picked up a great client. If I stayed home and watched the football games, none of that would have happened.

Open houses are a great way for loan officers to meet Realotrs. I have rarely heard of an agent selling ahome through and open house. Each activity is part of your overall marketing plan.

Done properly and with a strategy behind it it works. Throwing out a couple of signs and winging it may waste your afternoon.

Never during footbvall season though.

Randy says it.... Doing an open house is better than laying around the house moaning there is no business...

I agree that OH's serve a purpose. We all know that, statistically, our buyer isn't coming from one of these, but the sellers like them. If my sellers ask, I do them, time permitting. When I first started and had no listings I sat at other agent's listings. Nothing ever came of those (again, this goes back to promoting them correctly). Apart from all that, I view them as a good opportunity to catch up on my reading of industry publications if I get no walk-ins.

When I set up an open house I always tell my seller that only 2% of homes sell during the open house. However, the open house often generates more publicity. It gives me a chance to have the house in the paper and an open house ad. I oftentimes see more activity after the open house with other agents showing the house. That, and the fact that I get to be in front of the public and perhaps get a few buyers out of the deal!

Being somewhat new to Realestate I do all the open houses I can. It gives me a chance to meet with potential buyers and sellers.

I am also new to Real Estate, and I do Open Houses frequently. I haven't sold anything from the ones that I've done, but I know of other agents in our office that have benefitted. It is a good opportunity to meet potential clients, but I think it's great just to build confidence in dealing with people in real estate situations. If you don't have a deep client base there really aren't that many times when you can talk to strangers about real estate, and have them actually listen to you. You really have a captive audience, and they've chosen to put themselves in that position. Open Houses are a great educational tool, and they do make your selling clients aware of the effort you are putting forth for them.

Before real estate, yes I had a life before real estate, I did a fair number of trade shows in high technology. I love meeting people face to face and have found over the past 5 years that Open Houses really work for me. I have sold 10 or more homes from open houses either by meeting the buyer who went forward to buy the house I held open or by meeting a buyer that I found a house for. Even now when much of my business is referral and lead generated, I still view open houses as part of my marketing strategy for both the buyer and seller side transaction.

There are drawbacks though. Risk management comes to mind in our ever litigious society and unfortunately I know this first hand. New and experienced agents have to be educated about the perils of holding listings open. ANSWER ME THIS....If there is snow on the walkway prior to your open house what do you do? I would love to see your answers in following posts. Another issue that is raised by Open Houses is Realtor safety. Here again, education is critical so that we don't end up a statistic.

It isn't as easy as throwing a sign on the front lawn and sitting at a table waiting for someone to show up is it?

John - isn't it funny how our mentality changes when business slows? I know I've had to make some adjustments also to more agressively get the business. The days of the fish just jumping into the boat are gone... at least for a little while.

MaryAnn - Thank you. I agree, neighbors can be a great resource for referrals on your listings. While I'm always trying to sell the listing I'm sitting on, I'm certainly not goin g to let other opportunities slip through my fingers.

Central CT - That's great! It's so much fun to reach those people early on in their process and really be able to guide them and advise them. Exposure is definitely the name of the game!

Brian - I agree, exposure is the KEY element to the Open House and rain certainly doesn't help us. However, one thing about doing an OH in bad weather, you know that the ones that come through are fairly serious buyers. Most tire-kickers aren't going to get out and get their feet wet.

Andrew - what is it that you hate so much about OH? I don't do it just because sellers expect it. THere are many expectations from uninformed buyers/seller that I don't follow. However, I feel if something works, it's our responsibility to do it for our client.

Jeff - Awesome! True, the higher-end home is a different animal but the OH can still be a useful tool. It just has to be modified a little for the market you're trying to reach. Materials are definitely a key element also. BTW, great suggestion on the mid-week OH!

Gloria - GREAT POINT! Practice is exaclty what a newer agent should seek out. Every opportunity to sit on an OH is an opportunity to learn and sharpen those skills. I believe the only differences between an extremely boring OH and an extremely productive one are our approach and our attitude.

Debbie - Our mood can definitely predict the outcome of our efforts. I know many agents like you've mentioned also, who make their living on Open Houses. What an missed opportunity for so many agents!

Kaushik - very true... curious neighbors can find you good buyers too!

Ines - Thank you

Colleen - I agree, it's a great time to catch up on things. It must be interesting doing an OH in a community like that.

Mike - The location can definitely make a difference in the overall exposure. I agree, communication with the seller on their expectations can be the difference between a happy or frustrated client.

Jamie - no signs? That definitely puts a dent in things. Does attracting tourists turn into business for you? I believe the success or lack of is mostly due to our attitudes about the OH.

Lloyd - yes, 50% my first year. I was already used to doing open houses so it was just natural for me but that was my way of finding clients. Open Houses can be a great source of business if done correctly and consistently. I think many agents give up on them before they learn what works and what doesn't.

Doug - very true! It's a great way to get your name into a neighborhood but holding the same house open too often can create problems also.

Patricia - yes, people definitely look a lot online but that will never replace the emotion evoked when walking through a house. I've never gotten really excited about seeing a home online. It's not until I walk through and visualize whether it would work for me that I get excited.

Curt - Thanks for the link. I'll check it out. I'm anxious to see what you're offering there.

Suzi - it is definitely an art and each listing and OH will be different in the way you market it but don't give up. As I said above, I believe most agents give up on them way too soon. It takes practice and honing of your approach. I posted a list today of some of the key elements to the open house. Check it out.

Randy - that's great! How true, we can't make it if we're not trying. Thank you.

John - success definitely requires a plan and you're right, football season makes it tough.

Mike - how true!

Maggie - true, many times an agent won't promote an OH properly if they have a newer agent sitting on them. I often have new agents sit on mine but I still market it the same. Several of them have picked up business from my OHs.

Chris - great point, communication on the seller's expectations is vital and many times the fruits of our labor comes later. Thank you

Don - that's great... keep it up!

Francis - you're right on! It's all about practicing in real situations. thank you

Maurine - Good points on liability, etc... maybe you could provide some educational posts on these topics to help us all understand your points better. If I implied somewhere that OHs are as easy as just "throwing a sign on the front lawn and sitting at a table waiting for someone to show up," my apologies. Maybe you could read my other post from earlier today.

After quite a few years of not doing open houses, I have started to do them again. In this slower market, I have with one property, picked up 4 great buyers, plus a listing and buyer. I guess it is the way to go again.

Bring on 2007 clients!!

Ryan- Good post. I think OH are a good tool to have in one's toolbelt. Funny but most of my sellers here all say to me... I know OH are a waste of time... I usually say well approximately 1% of homes actually sell at the OH. So from that standpoint yes. But if you want to go through the effort, I will be happy to do one. I leave it up to the seller. Sometimes it is hard for them to disappear for 4 hours on a weekend.

And I really like the idea of a mid week evening OH. Very clever and outside the box.

Off to your other post on OH. I am curious what you have to say.... :)

JAN

2007

Open Houses were a good idea at one point in time. Probably before lockboxes, computers, digital cameras, virtual tours, MLS's, realtor.com, etc. etc. If you can't find something else to do that has a better return on your time then you aren't trying hard enough or you don't value your own time. But if you want to use your clients home to generate business for yourself even though you know it will not sell their house, then you have no reason to complain about the 5% approval rating that real estate agents get. But that is just my opinion.

Interesting. I've seen 1%, I've seen 2% and I've read 30%. I tend to agree with Tony, although I try to keep an open mind. If there is proven merit in an activity, I will do it. Before Tony actually wrote it, I have thought, "why?" I am easy to contact. I have signs up, I am on the MLS, I use supraekey, I have websites, I advertise hard copy. I will show 8 to 8 or dawn2dusk. I use real estate hotline. Still, with so many swearing by OH, I will follow above the above instructions and hold an OH in February, just in case.

Wow, there are a lot of posts so I apologize if I am repeating what someone else may have said. My team sat one evening and explored this very topci. What was born that evening was an approach we are using that we think doesn't replace the open house, necessarily, but does address some of the benefits. We have signs in all of our local listings on a given Saturday - typically 10 or so will participate. They are on-call signs with directionals into the neighborhood. From 1-4 we are available to show each listing within 10 minutes. What our sellers appreicate is that they are on alert, so to speak, to leave if need be and the house is ready for show. What they also like is that at 4:00 I can share with them that either we had a very light day so if nobody paged us they weren't alone because I can report activity on the nine others that participated. If they did get a showing it was likely someone who really wanted to view the home rather than a neighbor. While I have met neighbors that have later become sellers of mine and in one case a neighbor knew someone who they thought would like the home, some of my sellers, and I am sure yours too, prefer that neighbors don't come through the home. This approach we think is respectful of the sellers' homes while still getting them as much exposure as we can.

Mary, would you mind mind blogging that? Thanks. Interesting.

JAN

2007

Lesley - Congratulations! Those are great numbers!

Debi - thank you.. I thought that was a great idea too!

Tony - I guess we all have our own approaches and tools that we choose to use. I don't abuse my clients or use them and I'm not complaining about my approval rating. My clients love what I do for them. But then, Of course, since most big builders around the country spend hundreds of thousands of dollars furnishing and marketing model homes and staffing those model homes, maybe the OH concept isn't quite so worthless. Or maybe you're just smarter than everyone else? That is just my opinion.

Suzi - It's definitely not for everyone and, as I said, I can't speak for every market, only my own. I make myself available in the same ways but there are still unrepresented buyers wandering around out there looking at homes on the weekends, rather than calling an agent. Good luck on your OH in Feb!

Mary - That's a VERY interesting approach and you've got me thinking. I may have to bring this up with my team and consider giving it a shot. Thanks for the suggestions! I too would like to see a more detailed blog about that approach!

Ryan, I don't believe I said you abuse your clients but judging by some of the comments, we as real estate agents aren't being truthful to the consumer. As a marketing tool for selling a house it is hard to find a less effective means. But as a method for finding buyer leads and generating business for you it is a good tool as you so clearly point out in point #3. Ask yourself this question: If I gave a copy of this post to all my listing clients, what would be their opinion of my motivation for holding their homes open? And how would this reflect on my efforts to sell their home?

Your arguement that builders hold "open houses" is not very convincing. A model home is not the same as someone's personal residence. I not quite sure how you can even compare the two.

The title of your post asks for our views of the open house. Just because mine doesn't align with yours is no need for you to become sarcastic. If you don't want to hear an opposing view, don't write the post. Or just don't respond to the comment.

Tony - while you didn't use the word "abused," that is what you implied with your comment "If you want to use your clients home to generate business for yourself even though you know it will not sell their house..." Several of the posts here specifically addressed being honest with the seller and letting them know that their home will most likely not be sold through the OH, which I always do, and yes, it is a good tool for me to generate more business. I look at my book of clients as a whole, as well as individuals and if I am providing outstanding service and the desired results for my clients as a whole, then everyone is happy. I don't hide my methods from my clients or do anything underhanded. As for the argument of builders' model homes, an OH is very similar if marketed and performed correctly, as I have outlined. The reason I draw this similarity is that builders model homes are something my team handles regularly, and where I got my start. It's where I learned many of the ideas I posted in my blog and I use those same methods on my Open Houses. While sitting on builders' model homes, I've sold many other properties to many other buyers who either couldn't buy or didn't prefer what that particular builder was producing, all with the knowledge of the builders I represent.

My sarcasm is in reaction to the condescending nature of your response. I guess we both could have done without it. I appreciate and value everyone's opinion, and open houses are not for everyone or every market, as I stated. I don't expect or want everyone to agree with me, but that doesn't mean I appreciate being told that I'm not working hard enough or I don't value my own time, or that I'm using my clients to benefit only myself (by someone I've never had any interaction with). Have a great day.

Fair enough. Point taken.

JAN

2007

Good post, and some interesting ideas. I'm especially intrigued by Mary McDonald's idea of posting signs saying you are "on call" to show the home during a particular time period. I live in a development that currently has a GLUT of homes on the market. Regular open houses have produced anywhere from zero to few visitors. Maybe this is a way to minimize the time waste and still offer improved exposure...

MAR

2007

GREAT post! I'm a brand new agent and I do Open Houses for other agents EVERY weekend. I have been very fortunate when doing this I have gotten 2 Buyers and a listing from this and I've only been doing the consistent open houses for the month of March! \

I'm definitely amazed!

APR

2007

I do one open house a year just to remind myself why I don't do them.

There are better uses of my time, both on Sunday, Recovering and regenerating from a tough week. And better things I can be doing to find sellers.

My buyer agent loves Open houses!

APR

2007

I find that open houses can be very frustrating. We have them every week and we will typically get less than two people through each open. Occassionally, we will get 7-8 but that is not the norm. I am not sure if it relates back to our local market or not. My OH today resulted in a grand total of 0. A very long two hours.

MAY

2007

Great way to get started or going again!

MAY

2007

It seems I've neglected to reply to a few comments here and thanks to David, I was brought back here to check things out.

Beth - I agree with you. I liked Mary's idea also and plan to use it soon. Let me know how that works out for you.

Erika - Those are AWESOME numbers! I believe that OHs are the best way for a new agent to get the ball rolling QUICKLY! Keep up the good work my friend!

Guy - The OH is definitely geared more for the buyers agents. There's a big difference in mentality between a BA and a SA. OHs are not for everyone!

Patrick - They can certainly be frustrating. I don't know your situation, but I've found that doing OHs too frequently can be very counterproductive. They much be a special thing with much anticipation built around them or they will be a waste of time.

David - Absolutely! You know what they say... when things slow down, go back to the basics. OHs are a very productive basic!