The Value of an Open House: a much debated topic....

The Value of an Open House: a much debated topic and often a polarized debate by both camps…

Background Information: There are the pro Open House supporters and then there are the ones who battle them and fail to see the value of one. Some take their positions in a civilized manner, other take a more hostile and arrogant positions against it. (but that is the subject of another post)

I have read many anti-Open House post in the past eight plus years, that I have been on this platform, needless to say, by well-respected community members and others who have left this platform and moved on to other platforms. Being an outspoken person that I am, I have taken an opposing view….

Recently, I read a Post by one of our friends here on Active Rain, this in turn motivated me to write one more polarizing Pro-Open House Post.

Hosting open houses has always been more a benefit to the agent hosting the open, than the sellers of a home. It's an opportunity to try and win over the buyers not yet represented by an agent.  Well, in the day and age of Zillow, the longer a buyer can go without an agent, the more they feel they don't need you.  So I ask you, are open houses really helping this issue?  

Now to my point of disagreement: The above statement has an inherently faulty premise as well as a faulty logic. The fundamental principal many may call it Real Estate 101 is: to generate listings.

If a Realtor has a good inventory of listings, that Realtor will be successful no matter if there are different platforms competing for buyers, or they are selling buyer leads. Listings are the life line of Realtors. It is not about capturing buyers.

That is the strength of the Realtor, getting listings, providing personal and quality client service, by communication and interaction with the sellers. Most importantly selling their property. IF they do that their value is proven and recognized by all.

One of the biggest disadvantage of the Internet Platforms over Realtors, is their inability to properly evaluate a home’s accurate value. One might say part of the reason is, because algorithms are not good enough, you need to see the neighborhood, what the homes nearby are like, what the neighborhood feel is. Are there inherent in correctable faults where the house is located? Unruly neighbor living out of his garage and throwing loud parties as an example. Or two loud barking dogs that are being kept in the back yard or front yard instead of a Good Electronic Security System. The military calls it booths on the ground, sorry but living in the cloud (internet platform that is) you cannot properly determine real values of properties for not only Homes, Condominiums but vacant land as well.

Open Houses are something these platforms tried via Virtual ways, but it does not accomplish the goal to eliminate a Realtor, if properly done it actually enhances the value of the Realtor.

Quite frankly Open Houses allow the Realtor to be on the Stage to be viewed by sellers as well as buyers. They can be observed as to how good they really are vs. the Internet Persona they project. Here anonymously sellers and even buyers can interview that Realtor.

In turn they can choose the Realtor holding the open house as their agent of choice and not choose the Realtor who is paying for a particular Zip Code to capture a buyer. It can also discourage them from using the one that is being force fed by Zillow and other similar platforms i.e.: the one being designated as the preferred Realtor.

I must concede Open Houses help the Listing Agent in many ways which is not a bad thing:

1.        The Open House exposes the Agent’s name to the local potential sellers.  Many times when I held an Open House on my listings, I ended up having nearby home sellers stop in. They liked my style and I received the benefit of another listing just the way I handled myself.
2.        The Open House helps the agent to win over the buyer. In my case this scenario materialized less often i.e.:  picking up a buyer. Probably, because my focus was on exposing the house to all buyers vs. trying to capture a buyer for a future purchase. I always hand out quality house marketing materials to all who enter my Open House. One of the benefit I receive from it on occasions is that they pass my information on to other sellers and buyers. Yes, I admit I even received Relocation Buyers from Open Houses. The real goal is to sell the house quickly for the most amount of money, that is what a seller wants. Period!

 

  Last weekend I went to an Open House in Culver City, CA. just as the listing agent was closing up her Open House. I spoke to her, she told me, she had over 100 people coming through in three hours. For argument’s sake, let’s presume only to forty or fifty potential buyers looked at the house. Giving the benefit that the rest were not in the price range or were just nosy neighbors.  She clearly was working for her sellers. How long would it have taken for her to get 40-50 people by appointment only to see the house? I followed up with her midweek, it turned out she received seven offers by Monday and they were all from the Open House. She ended up selling above asking price the home. This could not have been done to orchestrate that many buyers to go through the house in probably four or five days and the sense of urgency to write an offer would have been missed as well.

In my observation we do not need to be “apologizing to sellers” that we are picking up future sellers and a few potential buyers. They understand that is a byproduct of an Open House, the reality is all they care is for us to sell their home for the top dollar in the fastest time period. BTW it is easier on them if they do not have to have their home showroom ready every day vs. an Open House or two. Any way I look forward to your comments.

 

If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002(m) or homes@endrebarath.com or visit one of my websites  at  http://www.endrebarath.com.  I am a pet friendly realtor and I contribute a portion of my commission to local animal rescue organizations