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Open Houses

By Don Fabrizio-Garcia

Real Estate Agent with Fab Real Estate

May 19, 2008 02:47 AM

Lew Sichelman is one of my favorite real estate writers. It helps that he sometimes quotes me in his articles. His latest article pertains to Open Houses - Door is Closing on Open Houses.

Do open houses work? Are they worth it? The article presents both viewpoints. It also created some talk in my office today.

I heard over and over: Yes, open houses work! Yes, open houses work!
So I probed a bit deeper: How do they work?

"They help me gain new buyer clients," was the only response I heard.
But, do they sell the house you are holding open? The answer was a resounding, "No."

Yes, many agents have success finding new clients while holding open houses. I've done it. Many newer agents use it as a way to find their first clients. Of course, some experienced agents do the same.

Personally, I am not a fan of the open house. My job is to sell the home I have listed. Yes, I often obtain new buyer clients from my listings. But is my time - and more importantly, my sellers' time - best utilized by my sitting at an open house? Sure, I may meet a new client. How is that serving my seller?

Let's spend our time productively.
Sellers do not need to vacate their home for 3 or 4 hours on a Sunday so I can try to increase my business. Sellers can use that time to catch up from the workweek to ensure their home remains in model home condition for showings. Sellers can also use that time to enjoy their family...selling a home is stressful enough - we don't need to add to it by kicking them out of their house.
I can use the time to work with clients...or to market your home...
Heck, I can even use that time to speak with YOU, my seller, to discuss the market and how we are going to get your home sold.

According to the National Association of Realtors, only 7% of buyers begin their home search by visiting open houses. Meanwhile, about 85% of buyers begin their search on the internet. Where would you, Mr. and Mrs. Homeseller, prefer that I spend my time?

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

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Lisa Friedman

Alliance Realtors - Bedminster, NJ

Central New Jersey Real Estate

Don, I agree with you 100%. It seems almost selfish for an agent to sit an open house knowing that odds are that they are not going to sell that home and yet they are going to pick up new business to sell other homes.

May 19, 2008 02:56 AM

Pam Joffe

Solaris Realty - Tampa, FL

Good morning Don- I agree with what you said, however some sellers think you have to do an open house and you can't convince them otherwise.

May 19, 2008 02:57 AM

Associate Broker Falmouth MA Cape Cod Heath Coker

https://teamcoker.robertpaul.com - Falmouth, MA

Heath Coker Berkshire Hathaway HS Robert Paul Prop

The liability involved with representation is also a conundrum. If you are there to sell, and you are actually getting buyers under contract as a buyer agent, are you being the sellers fiduciary or your own?

May 19, 2008 03:01 AM

Andrew Baumbach

Homestead Realty Inc. - Milwaukee, WI

Greater Milwaukee Real Estate

Well Said Don.

I have not held an open since '06, and 97% of my listings sell. Too many agents out there still try to convince their worth because they claim they are holding an open houses to help the sellers, when they know in the back of their heads that an open will not sell the house but generate new business for the agent if anything.

The last stat that I heard was that of all home sales less than 2% were from Open houses.

May 19, 2008 03:18 AM

Don Fabrizio-Garcia

Fab Real Estate - Danbury, CT

Owner/Broker/Trainer - Fab Real Estate

Lisa - We agree! We agree!

Solaris - It is our job to educate sellers. That's why I wrote this blog post, and I've written about this before. So all sellers agree? No. But then we choose whether or not these are sellers we will work with. Whether or not to hold open houses is for the agent and seller to decide together.

Heath - Good point. The problem is that many sellers believe open houses will sell their home. They do not think about fiduciary responsibility and if they do, they think it is part of our responsibility to do all we can to sell their home, including sitting open houses. We as agents need to educate.

Andrew - I've actually heard that only 1% of homes sell because of open houses. I think it behooves both the agent and the seller to focus on the other 99% of sales. Focus on what will have the greatest impact to bring in the buyer.

May 19, 2008 05:20 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

I have to disagree. Judging from the number of calls I get from buyers who want addresses of open houses in my area, There is still a large number of prospective buyers to whom open house is one of their search activities.

Jun 09, 2008 12:07 AM

Lenn - Those who call for open house addresses are usually not real buyers. At least not yet. I've received those calls. They turn out to be non-buyers. Again, it comes down to where we should best be spending our time and efforts.

Jun 09, 2008 10:27 AM

Open Houses

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