YES

I just bought a repo fixer house with the intention of fixing it and renting it out.
First day that I could go there after I closed escrow to start cleaning it, a lady showed up and said she wanted to buy it from me for more than I paid the bank. It was not an intentional open house; and I wasn't intending to flip it when I went over there. but... never the less. being there attracted a buyer.

How many extra buyers can open houses attract? One is often enough.

It might attract more lookers, but NAR stats say less than 5% of buyers come through open house. My experience has been that most of the traffic comes from other homeowners who have open house in the same neighborhood and have no place to go. Also with gas prices the way they are people aren't driving around. The best way to attract more buyers is higher a professional full time realtor who is actually selling homes in this market. Give me a call and we can chat.

Yes, but i find it hard to get these buyers to actually close. Now im trying a lead generation company called Nationwide Financing. So far so good. Ive went through alot of buyers but i've closed more with them this month then i did without their help. I get a few tire kickers here and there but for the most part the buyers i do get are qualified which eliminates the headache of trying to get them approved for the house.

Jan:

Just wondering how your journey into the FSBO world turned out? Did you sell your home by yourself or did you list with a realtor? Posting your results would be of interest both realtors and sellers.

Carol Pease, ABR, CRB, CRS, e-PRO, GRI

Hi Jen. I am a mortgage broker that has sat in on many open houses with. In general, I have found that the open houses do seem to attract more buyers. It all depends on how well you advertise it. Good luck selling!

Richard:

Thanks for your kind comments. How about flipping me a "thumbs up"

Have a great weekend!

Greg
Very good answers. We worked with a Buyer's agent to sell our home and everything went very smoothly, including the closing. It was easier than cutting cake.

A friend of ours tried to sell his home FSBO and had numerous open houses.....many lookers but not one single offer.

Before switching to the "dark side" of mortgage lending I spent time as a real estate agent. The office consensus was that open houses were a great way to find more buyers to work with. Many who defined themeselves as "listing agents" would encourage the new agents to staff their open houses for them, as they didn't wish to work with buyers.

Now on the mortgage side I can tell you that part of the reason open houses don't have a high success rate is that people tend to shop homes above their affordability point until they have someone help them identify a payment they qualify for and are comfortable with as part of their overall lifestyle.

I also used to have statistics that showed that over 90% of listings are sold with the help of a buyers agent and most buyers agents search the MLS to find the homes they show their clients. The power of the MLS cannot be underestimated for this reason. If anyone has a copy of any recent statistics about cooperative broker sales percentages please let me know as I would like to update my files.

Thank you -

Open houses bring in people if its on a busy street or heavily advertised. Medicine cabinet shoppers too. :-).

I don't know about that, but you will have more people going through your medicine cabinet.

First and foremost, the majority of walk-ins have not yet talked with a lender to get pre-qualified. At this point you don't know if they can purchase anything let alone the price of your home. Secondly, you don't know who is entering your home and what their motive is. An agent working with a client will have already talked with their lender before showing them homes. FSBO today is tougher than ever. Good luck to you.

Hi Jan,

My apologies in advance for any 'repeat' advice, as I haven't had the chance to read through all the replies yet.

Anyway, in answer to your question, in my experience Open Houses are, for the most part, ineffective. They draw very few serious buyers and lots of curiosity seekers. Especially nosy neighbors who always wondered what your house might look like from the inside!

Moreover, Open Houses held by FSBOs can be awkward for buyers. Buyers do not like to feel hounded and followed around when they are looking at a home, especially by the owner, and then have that owner pointing out all of the upgrades, the new paint, the under cabinet lighting my husband installed, the kitchen, the baths, the obvious... well, it's a turn-off.

However, with all of that in mind, all it takes is one interested person, so....if you do have an Open House, make it productive: See if you can have a lender on hand to prequalify or at least pass out information, make sure that people sign in so you can follow up, find out when interested parties are looking to buy so you can weed out the 'window shoppers', make sure you have Open House signage throughout the neighborhood and its main roads and not just on your lawn, and most importantly! Make sure your house smells fresh and clean and that your whole family isn't home watching TV or hanging out in the bedrooms. I've been to a few showings like that, and AK! can you say awkward?

Best of luck.

Realtors know that there is a 1% chance to sell a home through a open house. An open house usually generate buyers for the realtor. Its usually done to show sweat equity to the seller.However, there is that chance that an open house could work for you.

Open houses are really hit or miss. Sometimes you have a few buyers come through sometimes none. Don't expect to get any and if you do consider it a success. Good luck to you!

First of all less is more. Pack away all non-essentials put them in storage if you have to the less cluter the better make your home seem to have as much open space as possiable. Also do a full inspection of your home add a fresh coat of paint here and there, make sure you brighten up the atmosphere. Landscaping is a mojor factor to get the childrens toys out the front yard put in sesonal flowers first impressions are everything when selling your home. Last of all if you're sellign it yourself your best friend could be the person that gave you your mortgage. Keep in touch with the banker that did your loan they might have someone that is pre-approved and looking to buy in your local area. Also if your banker is anything like me they might be willing to attend your open house provide free advertising which would assist in geeting people in the door to look at the house and then you would also find out who is really interested and not just out looking around.

In the Seattle market, agents usually hold open houses to obtain buyers. It is unlikely to sell a home during an open house. With all of the electronic marketing vehicles available, this is a bit of an antiquated marketing technique, not to mention the potential inconvenience to the seller. For a FSBO, there can also be safety issues and identity theft considerations. Why would you want to put your personal phone number on your front lawn and open your home to anyone that walks in the door.

Online, 85% of buyers look online when they are the market for a home. Try free sites like Craigslist, Backpage, etc... However an agent will be able to market your home in more places that agents look for their buyers. Good luck.

My partner and I have sold several homes "By Owner" as a direct result of an "Open House". I wrote an article about it some time ago. Maybe it will give you some ideas to help you get yours sold as well. Here's the contents of that article (grammar mistakes and all :)

How I Use "Open House" To Save Time And Maintain Sanity!

When you're busy at work, the last thing you need is the frustration of having to run home 2, 3 or 4 times a week to show your home. It's especially aggravating when realize that at least 1 out of 4 people who schedule an appointment ... won't even bother showing up!

I’ve found that the best way to maintain control of my time (and my sanity), is to hold a "OPEN HOUSE" each weekend, until the house is sold. I set up a time frame a week in advance. Usually 11 a.m. to 2 p.m. on Saturday and 1 p.m. to 4 p.m. on Sunday.

When I return calls to people who’ve left messages on my ads and flyers, I give them these specific time frames and tell them "this is when you can see the interior of the home if your're interested".

I also put "Open House" (days and times) on my flyers (in bold print) so that everyone who picks up one of my flyers from my info box knows they're able to come back to see the inside of the house over the weekend.

I do this for three reasons:

1. I’ll have time to get the house cleaned up so that I'm prepared for my guest.

2. Odds are that the more people I schedule for these times, the better my chances of having someone show up, so that I’m not wasting my time. And when 2 or 3 potential buyers show up at the same time, it can create a sense of urgency (competition) among them that works to my favor.

3. The main reason for setting up showings in this manner is so that I maintain control of my own time. Otherwise, I could end up running around like a chicken with his ... well, you know what I mean. Been there, done that ... didn't like it!

I know some will say I loose buyers this way, and that may be true ... but personally, I think the trade off is worth it.

Now, I will show a house at times other than just the weekend “OPEN HOUSE”, but usually I’ll only do that for people who’ve already been there for a weekend showing. Often, you'll get people who want to come back for a second look. Sometimes it's because they want an opinion from a trusted friend or relative.

Keep in mind that "serious" buyers generally ask a lot of questions too. Since buying a home is usually the biggest investment of a lifetime, that's understandable. So be gentle my friend ... your potential buyer is probably a lot more nervous than YOU are!
***
BTW: If you happen to visit my website as listed below, keep in mind that it's a "work in progress" ... well, a work in "occasional" progress. I've been meaning to get to that eventually (just a little busy lately).

As a precaution, I always suggest that when you have an “OPEN HOUSE” you should keep valuables safely hidden away where someone isn’t likely to pick something up that they weren’t suppose to. And don't forget to use the "buddy system". Call a friend or neighbor to hangout while you have visitors in the house. Besides, you'll need someone to help make sure everyone gets a flyer ... and some of those chocolate chip cookies you're going to bake just before "Open House" starts!

No, I really don't believe open houses attract more buyers. They are becoming a thing of the past. Serious buyers use the Internet and seasoned Realtors. All of our listings now days have virtual tours on line....a Realtor can't compete without virtual tours and web site exposure. I think as a FSBO seller, you're making your life alot more difficult than it has to be. There are so many great Realtors out there with marketing tools that can and will get the job done quickly for you and commission is negotiable!! Another point to keep in mind is that potential buyers are uncomfortable when a seller is present...it makes them not feel FREE to explore the home and buyers aren't likely to be direct and upfront with owners as they don't want to hurt their feelings....so you end up not really knowing how they feel about the house.

We are happy to answer any questions you might have or provide other information that might be of assistance to you. Barb

I've never gone to an Open House and gotten excited about a home. Just went to one last Sunday and I was turned off by much of what I saw, including two dogs in a large cage back near the laundry/utility room. The Seller should have removed the dogs before having an Open House.

as a Buyer I search the internet trying to pick out homes which I believe have potential to satisfy my criteria. After I get a few of them picked out, then I make an appt to see them.

You need to really do it in combination with other marketing tools and techniques. It may bring in buyers, but usually mostly lookers.
I suggest a one/two punch, where you advertise in certain publications, create a website just for the property, and get flyers out in the neighbourhood.

An easier and more effective way is to get a Realtor to do the same as noted above, unless you plan on making the selling of your home a full time job.

It's better than not doing anything... However, open houses are probably one of the most inefficent ways to sell a house. E-mail me and I'll give you a list of things you can do that are more effective and not nearly as boring.

It attracts more people who are potential listings than buyers for me. Although the buzz on the street from an open house has produced at least 1 deal.

Do it for the listings...

I have done informal survey of open house guests. More than 90% of people who go to an open house do some sort of real estate transaction in the following 12 months. Now the good questions are:

Will they buy or sell?

Will they buy using the agent at the open house?

Will they buy that specific home?

An experienced agent who is familiar with holding an open house can present your house and your neighborhood in the best light and increase your chances of selling your home.

You can also look at this from another angle.

Almost no buyer will buy a home without seeing it first. And you only need one good buyer.

Would it make sence that if more people saw your home the more chance you might have of selling your home?

One of the biggest open house sins / do not dos is for the home owner to be home with a buyer is visiting your home.

http://www.888SiliconValley.com

Yes! The more people that see your home, the better your chances are; and don't forget broker's open houses, very often that is the only way other brokers, get to see your home. In Manhattan where people are very busy, and where we don't have lock boxes, open houses are virtually the only way, (besides virtual tours) that a buyer will get to see your home.
Also the "open house" listing in many digital listing systems, will come up in the "top position" in a search.
If you are selling the home yourself , please make sure that you are not alone or vulnerable; I wouldn't recommend just putting an "open house" sign on your property.
Agents and Realtors are recommended to have training in safety & security measures...

Open houses show your seller that you are actually doing something, working, to sell their home.

Does it attract buyers?

Not in my opinion.

I have been doing this for nearly 29 years and it used to be open houses was the place to get new clients.

Now Buyers can do open houses 24 hours a day on the internet. If they see something they like they call their agent or in the extreme excase that they do not have an agent they might call you for more information.

12 years ago it was unusual (but occasional) to sell a house because of an open house. It was common to sell a house from a newspaper ad. It was unheard of to sell a house because of the internet. - All of this was true 12 years ago. Things change. Now newspaper ads dont sell houses ( not often anyway) The internet is the next best thing after agents. (The most common source then and now) Open houses are staging a comeback. There are more success stories on open houses now than there were ten years ago. Every thing changes. Plug away.

No. Buyers find homes online. Neighbors come through open homes. If a buyer wants to see a home they have already seen it online and they want to either see it or make a comparison.

In the Los Angeles area, the answer is YES!

I used to tell my Sellers that open houses usually don't work - less than 2% of homes actually sell at open houses, but I would be ahppy to hold an open house for them because I could possbily gain a few buyers.

My experience has recently changed so now my opinion has changed as well. I sold a house at an open house last weekend. A buyer saw the listing on craigslist - and came herself (her agent doesn't work weekends) she came back with her agent on Monday and wrote up a beautiful offer.

I think the offer was good because the open house was busy and she saw the competition. I think the open house was good because it was well advertised (local paper open house section, local MLS, Realtor.com, Obeo.com, Openhomemaps.com, Homes.com, craigslist) and we did it the first weekend the house came on the market.

Try it - you might like it.

Jan,
The more exposure you get on your home, the more chance it has to sell. It is always a good idea to have an open house if you are trying to do everything you can to sell.

Need open house tips?
A pleasant smell will set the tone. Some people bake fresh cookies just before the open house to have a great smell and a good snack. These days you can do other things to have the home smelling terrific. You might advertise a drawing to bring in more people. You may offer a gift certificate to a popular rest. whatever seems right to you. Ask them to leave their contact info. This way you know who has been throug the home if you want to follow up with them to find out the level of their interest and if they have any feedback to offer. The sign up sheet also is great as a safety measure. Unless you get bogus information, which you might, you will know who has been through your home. Next have color flyers with your contact information. You want to make it easy for them to contact you after they leave if they decide they have some interest in the home. Have the home spotless. It wouldn't hurt to add some fresh flowers somewhere. Hope this helps. Carrie

Jan,

As a FSBO, I would say yes, you need to expose your home. In GA I have never sold a home from an open house but in other areas of the country they are very popular. Ask a approved lender to attend to pre qualify any interested buyers, they can also help you with signage etc.... Balloons, draw prizes,food& refreshments always seem to work.
The best way to attract more buyers is to use a full time top producing Realtor. Todays Market demands exposure especially on the internet, so much so that we are now employing a full time data input assistant. We are also marketing abroad with the overseas currencies stronger than the dollar buyers from abroad are looking to invest here in the US. Some to recoup the money they had lent the US market in the boom times which now has been defaulted on. Serious buyer need serious marketing. Good Luck stay consitient and you will get results.

Yes...but one needs to decipher between the "just looking" crowd, to serious contenders/buyers.
Do not hesitate to ask questions to possible people coming in...when you do an opn house yourself, advertise in the paper, and craigslist, and make up a flyer about the home.

If someone appears to be interested, ask if they are prequalified, for how much and what bank...if it is a big secret as to what bank, they are probably lying....so move on to the next person. Do not be afraid to be firm, but straightforward with people...and do not get offended when people make commentary about your home...that is just a negotiating technique.

Since you are selling by owner, I would say an open house is a must. As an agent, the open house is probably second to newspaper advertising as the least effective method of promoting a house for sale. The truth of the matter is that open houses typically help the agent meet the neighbors and pick up new clients, but they seldom result in a sale of the property being held open in my experience. In your case, though, without the power of the MLS and an agent working the back channels within the industry, you should use every means at your disposal to get potential buyers through your door. J.R. said something that I have always maintained. Most people shop above their means when attending open houses. My assumption is that buyers see something from the street that is far more attractive than what they have been seeing in their price range. So they come on in, grab a flyer, and find that the house is also 200k above their ceiling. You will also have to wade through the nosy neighbors, the tire kickers, the agents trying to solicit your listiing, etc. With limited avenues of reaching the public as a FSBO though, I don't see it as a choice. You must include it in your arsenal.

Sylvia wrote:
This is has nothing to do with the question but I noted J.R.;s question about statistics so I thought the link to your site right in the middle of your answer must have something to do with the question and/or the statistics. Neither.
~~~~~~~~~~~~~~~~
Yes, I clicked on it, too. :)

Hi Amir:

This is has nothing to do with the question but I noted J.R.;s question about statistics so I thought the link to your site right in the middle of your answer must have something to do with the question and/or the statistics. Neither.

As you are new on Trulia, I just want to remind you that the commuity rules for using Trulia is to help the consumers and not for self promotion. If the link in the middle of an article is relevant to the question asked it's fine, but if not, please do not include links in your answer.

Thanks,
Sylvia .

In my experience open houses have been real hit or miss as well. Sometimes I will take out an ad and have only two people show up. Other times I have not done any advertising except for displaying some "open house" signs pointing the way and end up with a full house. I have only once sold a home as a direct result of hosting an open house. In my opinion it is still worth doing from time to time, but bring a good book with you just in case. I still beleive the best way to to make your home visible to buyers is to have it represented in the MLS.

Amir WRote:
More than 90 % of people who come to an open house end up doing a real estate transaction within one year.

~~~~~~~~~~~~~~~~~~~~~~~~~~
Do you have a source for that statistic?

Hi Jan. Most times when people see a sign, or go to an open house, if they ARE interested in buying usually think the house costs less. I don't know why, but every time I get a sign call and tell the price I hear "oh, that much?". I had an open house today and had 2 neighbors and no one else. I have done open houses and gotten a lot of paperwork done, but had no buyers. I also sold a house at an open, so it does happen. However, that time a bunch of agents in my office had taken out a full page ad in the local paper with open houses complete with a map. The buyers saw the ad and visited all the open houses in their price range and bought my listing.

More than 90 % of people who come to an open house end up doing a real estate transaction within one year. Frequently they have their own agent or they might not choose a different agent than the agent who is holding th eopen house. Just ask yourself, would you buy a shoe without trying it? Some people do, and personally I think that most people do not.

http://www.888SiliconValley.com

In addition my personal experience has been that the seller who do not want an open house are the same sellers who do not allow easy showing of their home. I have found it to go hand in hand. Some sellers want an appointment or hours and days advanced notice.

The bottom line is the more that a seller shows their home the more chance of it selling.

There are definetly exceptions. One that comes to my mind is very expensive homes. In each area that could mean a different thing. For example I just previewed a $ 30,000,000, thirty million dollar home in Palo Alto, California yesterday. This house had 15,000 sq ft on 5 Acres. Holding this home to general public will attract hundered of people a day and would require possibly over 5 agents. Probably most people looking at this home would not be able to afford it. I am not the listing agent for this home. If I was was the listing agent for this home I would have an open house by invitation only.

I say "go for it." Any effort, strong and well-presented is vital the minute your home become a part of the market. Time is important and I certainly think any effort is worth of try especially if by FSBO (for sale by owner). We have had good success with our open houses, but as others have mentioned it can be area-related on how successful it will be. It only takes one person.

Being a FSBO and doing an open house ( host it sooner than later ):
• People can easily access your property and you now have the ability to request feedback of people after they have completed touring the property. It is imperative to listen to what all are seeing that maybe you don't see.
• Meet some REALTORS® and neighbors: have patience you never know if they might bring you a buyer and they could give you some good pointers and local tips.
• Have good signage out there that is readable and accessible from main roads (if applicable or reasonable)

As others mentioned, they may not all be qualified and it may not generate "more buyers." If anything it might be worth exploring just to make your property more accessible to the public. Or see your signs out that may not have realized you had your property for sale.

Best of luck Jan!

Hey Jan, I'm a Broker in the Denver Metro area, I have sold 2 homes through open houses. So it is possible. Most of the time you will get Brokers like myself coming in offering professional advice in hopes to earn your business later if you chose to use a Broker down the road. You may get unqualified lookers through the door, but they may know someone who is qualified.

I guess the bottom line is open houses are not proven to be the most effective means of selling a house, but I think its worth doing from time to time.

You will attract buyers if you have open houses. They may or may not be qualified to buy your home though. That is one of the most important things that realtors do for home sellers. They qualify the buyers before they waste your precious time.

It will probably bring in more unqualified home lookers than actual buyers. Chances are low that someone from an Open House will walk in and say - this is it! but anything is possible - For sale by owner having an open house - it should bring in realtors but that isn't a bad thing - you can listen to what they have to say and get to meet a lot of realtors who may have buyers for your home.

Hi Jan,

Are you selling and buying? Having an Open House can give you an opportunity at attracting buyers. As you are trying to sell your home on your own, please be careful. Your property should be ready to show. You may provide an opportunity for potential buyers to come and view the property. However, the real buyers in your area are out there already looking. They may be working with Realtors and may miss out on seeing your home. I do not know if they "bring in more buyers" I think Open Houses provide an additional opportunity to buyers to view your home. With some Open Houses you actually get traffic, while with others you may get 1 potential buyer or 2, or none. Inlisting a good Realtor in your area can be a great asset. Best wishes!

Hi Jan:

Open House is a hit or miss. Statistically, you get most of the buyers through listing your property with Realtors and other marketing methods.

When I hold open houses, I mostly get people who are either 'just looking', 'has been looking for years', 'their realtor told them about it - in your case, the realtor probably does not know', 'want to get ideas for remodeling', 'taking a walk and happened to see the sign', or every once in a while, I will get people who said that they saw the newspaper ad and decided to come and see the house.

Most of the houses are sold by Realtors bringing their clients through. Not to be self-serving, but this the law by largeness. When people sign up with Realtors, they are more serious and committed to buy at that time, and the probability of serious, preapproved and ready-to-buy buyers is just so much higher.

But never say never, doing one more thing always gives you more exposure.

Sylvia

Yes, you will receive a few buyers. Realtors will also probably stop in. Who you might not get at an open house that you do is the neighbors. Neighbors like to come to open houses that Realtors do. It allows them to preview without having to visit with the homeowner. Neighbors are welcome visitors because they frequently recommend the property to their friends and family.

Statistically, few homes are actually sold directly through open houses. Holding pubic open houses is one part of a comprehensive marketing mix to promote your property, but it is not a primary vehicle for obtaining a buyer.

Good Luck.