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Open Houses. Do They Work?

By
Real Estate Broker/Owner with Sasha Dear Real Estate Brokerage

If you are asking if an open house will help sell your home, then my answer is "unlikely".

Before the Internet boom (before the majority of people turned to the Internet to find their next home), people relied on printed MLS books, newspaper listings, Real Estate magazines, and driving around their desired neighbourhoods to find open houses. Back in those days (before 1995), open houses were an effective way to help sell a home. The people who entered the open house were actually ‘likely buyers' who were in the market to actively search for a home to purchase.

What we see nowadays though, is a trail of nosey neighbours and week-end tire-kickers who want to get decorating ideas or just want to compare your home with theirs so that they can imagine up a value for their own.

So why are open houses still held?

  1. There is still a VERY slim chance that the person who enters the open house will in-fact buy it (based on the opinion of at least 50 Real Estate Agents questioned in the Toronto, Barrie and Muskoka areas, the response is about a 2% chance)
  2. The Seller may not believe, or has not been educated about the way in which buyers now purchase a home, and the Agent holds it to satisfy the Sellers demands.
  3. The Agent wants to draw in potential Buyer and Seller Clients, and this is a great way to meet new Clients.

The majority of Buyers, about 96%, now look at the Internet when searching for a home. Real Estate Agents look on the Internet within their own system, and email or call their Clients when suitable homes become available. The Real Estate Agents own system is the one that feeds the public realtor.ca website. Most real estate boards have now stopped issuing the printed MLS books.

In short, if your home or cottage looks like it may be suitable for someone, then they will make AN APPOINTMENT to come view your listing. Those are the type of people who you really want looking around your home!

Posted by

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

 

Donna Bosze
Realty Executives Top Producers - Chesapeake, VA
Ask Me Why I'm Different!

I still do them though....they work for my business and my clients don't mind letting me for the slim chance they might get a buyer! Of course, I most always pick up a buyer/seller. Works for me!

Jun 27, 2011 03:55 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

I have sold ONE home as the result of an open house and that was about 8 years ago. I just don't do them anymore unless a seller is insistent upon it - and yes, I even explain the odds and how buyer's search for homes today. But there are few folks who pretty much expect at least one open house. So silly. I certainly wouldn't want a bunch of folks tramping through my house out of curiosity - and that's pretty much what happens at an open house. Good reminder Sasha.

Jun 27, 2011 03:56 AM
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

My wife had an Open House for a listing she had just taken. This Condo had been on and off the Market and had experienced several agents over about a 2 year span of time. I agreed to hold the house open for my wife (being the good husband that I am). Nobody came, so when it was quitting time, I was ready to go. I was turning off the lights and a couple walked up and asked if they could tour. Of course I said, "Yes"! Guess what, they liked and bought it! We closed in about 3 weeks. Sometimes Open Houses do work.

Jun 27, 2011 03:58 AM
Ralph Janisch ABR CRS Broker
Janisch & Co. - Conroe, TX
Selling Northwest Houston to good people like you!

Open's might work in some markets but in most markets they are "Old Technology"....  We have sold one property as a result of an open house in our entire combined experience of of over 50 year. Soooo..... as a general matter of course we don't do them and discourage them to everyone.

Jun 27, 2011 04:36 AM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

Sasha - generally, like you, I seldom hold an open house as they generally do nothing for the Seller a qualified Buyer or the agent sitting the open house ..... on occasion when a property is first listed and the market is hot then yes perhaps and a few other scenarios but as a rule of thumb NO

Jun 27, 2011 08:12 AM
Not a real person
San Diego, CA

It’s a major holiday here in South Canada, so I’m making an attempt to set a new record for comments in one day. Hope you have lots of fun and food with family and friends today!

Happy Fourth of July!

Jul 03, 2011 06:35 PM
Sasha Dear
Sasha Dear Real Estate Brokerage - Bracebridge, ON

Thanks all for the insight. It is interesting to know how you too feel about open houses based on your experiences.

Russel - Thanks. Hope you had a great long weekend

Jul 06, 2011 05:00 AM