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Open Houses - Are they worth it?

By
Real Estate Agent with Realty ONE Group CalBRE# 01245463

Many sellers ask me if it is to their benefit to do open houses to sell their home. National statistics show that only 3% of homes sell at an open house. What does this mean? What it means is that Open Houses are mostly used as a tool to appease the seller. The seller sees we are in their home for 6 hours and that makes them feel as if we are earning our commission!

If done properly, an open house can be a suitable way for an agent to expand their business. Open houses are a great way of meeting potential buyers, meeting neighbors, and for exposing your name to everyone around town (I use 70-100 signs for each open house I do).

What does this all mean....

I held an Open House last week in a condo in Anaheim. 73 signs, 7 hours and only 3 visitors (2 neighbors and 1 potential buyer who needs to sell his home in Las Vegas first). Not the types of numbers I'm looking for. On the other hand, I listed 2 new properties this weekend from an open house I held 3 months ago in Tustin (that had 18 visitors).

Be sure to select the right property to hold an open house in. A SFR is always a better choice than a condo.    

 

Jacqulyn Richey
Prominent Realty Group - Las Vegas, NV
Las Vegas Real Estate

Open houses are usually only good for picking up other buyers (who buy something else). But they do appease sellers. If your client needs to sell his house here in Las Vegas still, let me know.

www.lvrealty.net

Sep 24, 2006 08:10 PM
David Eiglarsh
RE/MAX Concierge - Weston, FL
CRS, CDPE, Serving South Florida

I say no to open houses. Don't let your clients bully you into doing them. Know your dialogs and be able to defend your position. 1) I and my brokerage doesn't want to be responsible for theft. 2) My time is better served searching for buyers from the larger buyer pool than just an open, 3) I did an open house every Sunday for the first 3 years of my career and never sold a house as a result. I've also never met any agent that has sold the house they are in. 4) Most agents use the open house as an office for the day to attract buyers for other houses. 5).....

Sep 25, 2006 03:04 AM
Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker

Just depends if it's part of your market plan. Are you a new agent, don't have much of a sphere? Then do some open houses for other agents. It can be a good way of gaining exposure and potentially new buyer clients. For seasoned, established agents, it just depends on your repsective markets. For me, I rarely do open houses anymore, unless my Seller is getting ansy and needs me to pull out all the stops.

Rich Jacobson, www.KitsapLife.com

Sep 25, 2006 08:55 AM
Dan Jungclas
RE/MAX of Naperville - Naperville, IL
ABR, ePRO, Broker
I agree with most of the others above.... open houses are nothing more than a tool for an agent to develop more business off of a listing...  if the seller really demand it try using a virtual open house... it will cause less inconvenience for all!
Sep 25, 2006 01:14 PM
Mike Osborn
Long and Foster Realtors - Chesapeake, VA

As a new agent, I agree with Rich that they can be a good tool to help expand our sphere a little. 

On another note, a couple of months ago I did my first open house with another agent who did actually receive an offer from one of the people who came to the open house.  It excited me at the time, but now I have heard from many that that was definitely the exception and not the norm. 

Sep 28, 2006 01:07 PM
Jorge Martinez
North Orange County ReMax Realtor - Anaheim, CA
Espanol Spanish Bi-Lingual Agent

Always hold open house on a SFR rather than condo.  Is agreat way to get new bussiness, but as you qualify clients to work wtih. Make sure the property qualify (nice curb appeal, nice neighborhood, location, etc.) to  attrack people.   

 

May 30, 2008 10:42 AM