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Gwen Sparks, Real Estate Pro in Mount Vernon, OH

Does open houses really work in all areas?

Asked by Gwen Sparks, Mount Vernon, OH Sun Apr 1, 2012

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Chris Rao’s answer
Open Houses are an opportunity for casual buyers to get to know some inventory and make some preliminary judgements about their housing search. As an agent, it helps me to keep my buyers active in looking at property even when I am tied up with another client. In October of 2004, our company sold 5 homes at Open Houses, but the market conditions motivated the buyers to make faster decision back then.
0 votes Thank Flag Link Wed Apr 4, 2012
I am with Debbie....
It makes seller feel you are giving attention but really... they are more effective in getting new buyers as clients, oppose to actually selling the home. I have never sold a home that was actually sat open as an open house. However indirectly, it may help... The neighbors will come by and perhaps they have friends or family that would like to move to the area.

Holding a "GOOD" brokers open would be more effective in actually trying to sell the house.

Ellen brought up a suggestion that I have not tried.... but surely sounds worth a try. Thanks Ellen will have to try.

Also indirectly may make someone that stops by with an agent move a little quicker if they see other interest.

Bottom line.... Dot all you i's and cross all your t's(meaning every effort and opportunity to advertise and show the home should be done), price it right... it will sell!!! And I must add... selling agents that put 1 photo on MLS... you kill me.... step it up!!!
0 votes Thank Flag Link Wed Apr 4, 2012
Open Houses are a real estate tradition...before the internet and websites this was the best way to showcase a home...it gave the potential buyer an inside look. Today buyers can get a look inside with a touch of a button...websites, pictures and videos are easily available for most listings. Buyers are narrowing their searches online and making appointments to view homes in person. Open Houses are expected because it is the traditional way to market a home and give the seller the impression that you are doing everything you can to sell their home. Do they work? Not according to statistics...will the promise of having them get you that listing...maybe. What clients need to understand is that every click of their website is like a potential buyer walking into their home to take a look.
0 votes Thank Flag Link Wed Apr 4, 2012
My Best Open Houses happen when I reverse prospect through MLS and CALL (I can't stress that enough) the agents who have potentials buyers and ask them to attend. All relationships honored, send your buyers or come see it together. Simple and effective.
0 votes Thank Flag Link Wed Apr 4, 2012
Open houses work if they are done right. They create a buzz around a certain home among the people that are in the market to buy through their brokers. There is definitely an art to hosting a successful open home, however, and many agents will not put in the work to make it succeed.
0 votes Thank Flag Link Wed Apr 4, 2012
depends on what your definition of "really work" is.........

.......do they bring in potential new buyers/clients for the agent? possibly, yes

.....do they result in a sale of the home? probably not.........at least not in my experience..

.............do they help the seller feel that you, the agent, are being pro active in trying to get the home sold? most definitely
0 votes Thank Flag Link Sun Apr 1, 2012
Hi Gwen,

I would say that its work 97% of the time.
Sometimes buyers would go in just to ask you if you have another property or tell you what they need, BOOMMMMMM you got a new CLIENT!!!
GOOD LUCK!!!
0 votes Thank Flag Link Sun Apr 1, 2012
For selling the actual home, data supports that open houses generally do not attract a buyer for that particular property. Open houses are a better source of real estate agents finding new buyers. Effectiveness of open houses is very much market specific.

Signage and how the open house is presented is a huge factor in the attendance.
0 votes Thank Flag Link Sun Apr 1, 2012
There are 2 questions. Are open houses effective? In all areas?

1. Yes. Open houses create energy for the home sale by providing exposure for your home, getting quality feedback in a timely fashion, and if located in a new home subdivision has a better than 1% chance of finding a qualified buyer.

2. According to NAR, National Association of Realtors, less than 1% homes sell via open house. Keep in mind that is a national average which means in some cases more and in others less. Averages don't mean a hill of beans in that you could have 49 states with 0% and in one state, one city 50% and get that result. If that city bought into the 1% ideology, they might now add open houses to the marketing mix and may potentially lose 50% of their buyer market. There is no real way of knowing the effectiveness of open houses without knowing your market statistics, which only your local Realtor would know.

Good luck!

Cathy Bureau
Broker - Owner
Green Home Realty
0 votes Thank Flag Link Sun Apr 1, 2012
That depends on your definition of "work." Home sellers think that open houses sell homes. Most of the time they don't result in a home sale, but they won't hurt and once in the while they do. Preparation is key. Advertise ahead of time both on the property and online/MLS, use signs and attention grabbers like balloons. I've had them where tons of people came by and I have had some where nary a soul arrived.
0 votes Thank Flag Link Sun Apr 1, 2012
When I take a listing, I do so with its location in mine. If it's located off the beaten path and the seller wants open house exposure, you may have a challenge before you...one of getting possible buyers to the home.

The best scenario for open house potential is a home with great curb appeal and located in a highly visible and well traveled area. Selling anything is all about "visibility"...the more people that know about the opportunity be better your chance for success.

To answer your question, yes, open houses do work. Many a contract is written on the dining room table.

Good luck,

Bill
0 votes Thank Flag Link Sun Apr 1, 2012
With a national closure rate of around 2%, sellers might not think they do.
0 votes Thank Flag Link Sun Apr 1, 2012
The inclusion of the word 'ALL' or "NEVER" can result in only one answer. FALSE OR NO.
0 votes Thank Flag Link Sun Apr 1, 2012
I highly believe in open house. I usually find a hand full of people each year that are in the market and ready to purchase that have attended my open houses. I stick with them until they are ready to purchase.

And if none of your personal listings would bring the kind of traffic you need to get a large pool of buyer prospects, do an open house for one of your colleagues that have a very nice home that you know is priced well and shows fantastic.

Deena Carvajal
Re/Max Avalon Park
0 votes Thank Flag Link Sun Apr 1, 2012
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