The Philadelphia Real Estate Blog

I have written about open houses before and we do them and go all out. Sellers (the ones that want us to do open houses) LOVE them. Neighbors even comment to the sellers that they think we are really working hard to get their house sold. Which we are. Actually we had a open house yesterday and this was in a not so great location (hard to get traffic there) but we got an offer on it today - from the open house. Another person is supposed to also submit an offer from the open house. So first and foremost we are there to do whatever it takes to sell that house. We don't go to do an open house just to sit there, we are usually very busy (even with bunch of other open houses around) we work hard to bring in traffic to our open houses. Yes the other benefits are we may get a buyer or a seller by doing them. Not everybody that comes in are going to like the house, but they may know somebody else that does and the house sells. I have noticed an huge increase in open houses and not sure if that is because agents want to do them or the sellers do? ~Rita

In our area open houses are a big thing.  I can't say I've sold a lot of homes at open house but as a result of the open house I have sold several.  Most of the real estate company have a lot of open houses on the week-end and it looks like your company is not doing anything if you don't have the open houses.  Its kinds a way of life in our area. Most of our sellers want them and expect them.

I will tell my sellers flat out "open houses do not sell homes...i will do them but dont want to do more than 1 or 2" my reasoning is this:

-i can not screen qualified from non qualified people...so lets say 10 people show up at once and 9 are not even close to this price range and 1 is...i have 1 out of 10 shot of giving my time to the right prospect

-why force people to come for 2hrs out of 7 days? im available all day every day to show it

-generally opens attract what i like to call "window shoppes" who just need to kill time or are neighbors who want to see the inside

I do them but I have sold very few from an open house. I do them to keep my sellers happy but I also like getting feedback from buyers who show up. Sometimes they are very observant and point out some interesting things.

Many Many Many conversation have been had here on the Rain re: OPEN HOUSES!

Sellers need to be educated that they have less than a 1% chance of selling their homes this way. If they still insisit on an OPEN HOUSE, be sure to tell them you cannot gaurantee the safety of their home. I think there should be a form they SIGN for this! and that open houses are FAR more beneficial for Realtor's to meet potential buyers than they are for the seller.

I still do 1-2 a month but sometimes I wonder WHY! I am at an open house right now bored to death! However, if they are in high traffic areas, it is a good meet and greet , especially for new Realtors. That is my 2 cents worth. Gotta go steal another cookie from the cookie jar...

I love open houses and have a success rate that is more than 10x what BethAnn mentions.  When I first started selling real estate 15 years ago I sold the open house that I was sitting at 3 weekends consecutively, my first 3 weeks in the business.

Ever since that time I have a passion for a good open house.  Some people only do them to meet new clients, some do them out of obligation.  I do them to sell houses!

Rita - Thank you for the feedback !  That is great that you are getting that much activity and traction from your open houses.  Are these newer listings ?  And what is the price range ?  Personally, I think it is a great idea to do the open houses in the early part of the listing as this is the time where the listing will generate the most traffic where sellers will have the most leverage from a negotiation standpoint. 

It is super that you are getting that traffic from your open houses from a lead generation standpoint. as well.  It would be great if you read this to come back and indicate what your strategies are in terms of driving traffic to your open houses.  In strong buyer traffic times, open houses are a great way to create a buzz about your listing.  The key though is that the traffic is coming in !  ~ Chris

As a matter of fact, I did a open house today.  Two different clients showed up and both were already working with a Realtor and were sent to the open house.  Both of these could have easily looked with their agents privately,  so this open house was totally unnecessary.  This area does way too many open houses. Considering only 1% of homes held open will sell because of a open house, it really is a waste of time, but the sellers here think it will sell their house.  They are sadly mistaken!  They just do not know any better! 

Stephanie, I don't do them anymore.

Well I did do one last year.

No shows...

The only place they are decent is right in downtown Ann Arbor.

I was out showing houses today and my electronic key was not working so I had to go to her open house to get in and show my client.

Got there 15 minutes before it was suppose to be over.............

REALTOR WAS GONE.

Connie - Thanks for sharing your experience.  I can see how a community can get into a groove for weekend open houses.  I would agree that if that is what is going on, I would want to be a part of it as well.  And I can see how an office could be "left behind" if they were not doing any open houses in that community.  Sometimes, having all those open house signs spread around town can be great advertising for an office as it just does not help get traffic, but all the future sellers are taking notice, aren't they ?  And that advertising for that time frame is probably much cheaper than a print ad !  

Still, if a house is vacant and easy to get into, does it really need an open time as any agent can easily make an appointment any time to get access to the property ?  Or the buyer can just call the office and get a private appointment at any time as well ?

Chris - the funny thing is that the last two houses that we have focused our open house efforts on were not very new listings. Suprisingly we were/are still getting a lot of traffic. And to make it even more puzzling is that they are higher price points (over 500K). For some reason the higher price point houses have resulted in better results for us. 

We don't mind at all when we get buyers in with their agents or if the indicate that they do have an agent. Do they like they house, and maybe end up buying it - then great.

One of the sellers was almost passing out has he was trying to come back home and the house was packed! LOL. He turned around and came back later. :)

I think the best open houses we've had over 50 people come through. Here's what we do. We have 30-40 signs. Yes, we put them all out - well Brian does - takes him about 1-2hrs depending on where the house is. The signs are custom made and are complient with HOAs etc. We have attached flags to many of them. (Some people actually thought it was an auction - lol). We use sign riders that vary from Free coffee to other things. We also offer free list of area foreclosures, loan information and market reports and have that on the signs. We usually have at least the info available, but often we also have a lender present. Often we also have 2 agents there. We have a gourmet coffee makers (that our lovely buyer/seller gave us) and we bake cookies - there at the house.

There's more but I am taking too much of your blog on this comment :) Oh I'll just add one more thing. We have a listing coming up and we are starting it with an Open House extravaganza! Shhh, it's a secret project. ~Rita

Several key reasons you have mentioned are valid; Key to price reductions, exposure, attract buyer and seller contacts. I have gotten buyers and listings from the open houses. Many buyers look for the open houses because it's a mechanism to see the house without actually committing to a Realtor. If you can talk a bit with them without coming off too pushy, they will open up a bit, and with any selling, it's always easier to sell when the buyer feels like they are in control of the transaction, but appreciate the assistance. 

Sean - Thanks for stopping by and providing your input.  Yes, I think too many open houses for the same property can be overkill.  I think they work best in the beginning of the listing when it is fresh and the seller has the most leverage.  Or it is not a bad idea to combine a price reduction with an open house at the same time to gain a little momentum.  Sometimes an open house person cannot purchase the property but may talk about it in a positive light to another buyer who is qualified for it.

I also think that for new agents their time may be better served hosting an open house than doing a floor shift since they will have the opportunity to talk to people face-to-face.  Of course, if there is no traffic, than it is a waste of time for all parties. 

Plain and simple, An open house for a new listing says see me. Seeing creates desire and desire leads to buying.

In a depressed market people aren't looking or shopping as much. Open houses create traffic which can generates leads for new contacts. Buyers and seller sometimes testing the waters. Its sort of like fishing, if you get a few hits you might pull in a fish or two. Just remember a seasoned fisherman knows.... how to fish, where to fish, and when to fish!

Sound fishy?  Jess Graves

Great conversation provoking post.  The topic of open houses is an often controversial topic amongst realtors in my area.

Here's my reasons:

* Capture internet buyers - best case - for my seller, worst case - for me.  Some internet shoppers enjoy the anonymity of being able to see a house without the "rigamarole" of meeting an agent, being asked to sign a buyer's agency agreement, having a buyer consultation, etc.

* Collect meaningful feedback - sometimes the feedback from realtor after showing the house can be incomplete.  They will tell you what they want you to know or hear.  Feedback from an open house is the best way to collect data from buyers.  Real buyers.

* After the first open house or two, I will explain to the sellers that open houses are best received after a price reduction.  I tell them the price reduction hits the MLS and the internet and then people are alerted to the open house.  Great way to set up for a price reduction.

I don't do them personally because they are a waste of a Sunday for myself & my client. I think most Realtors do them to potentially land a client for something else or to appease their seller. Proper education up front ensures you don't have to be stuck doing them. If you are a busy agent why would you want to?

It's a toss up for me. If the listing is in my farm I will have an open house more frequently.

As a mortgage rep I used to do TONS of open houses - more so to build rapport with the agent then to get buyers. Rarely did something pan out from an open house, but from working with the agent things panned out.

As a listing agent, I'm glad that only a small percentage of my clients want Open Houses.  Imagine if every one of my clients did?  You can't get new agents to host open houses in my market area, so I have to do them myself, which means only four a month.  They are terrific ways to meet potential buyers and sellers without the pressure of an appointment.  I look at them like when I was in college and professors would have open office hours where you could drop by without an appointment.  It also allows me to tell people who aren't preapproved for a mortgage to just go to Open Houses and meet agents until you are ready to make the commitment to one.  They serve a purpose, it's just that they rarely sell houses.  As long as my clients understand that, I'm happy.

Chris and Stephanie, love this topic and I have a lot to say from many different angles so I will try to keep it short and to the point.  As a consumer I think often we are convinced that we "need" an open house to sell our home - I now know and believe that is not always the case.   I will say that buyers of my last home did come in from an open house but I also had a few open houses that provided zero visitors.  I do believe now that it's more of an opportunity for an agent to make possible connections with home buyers and get referrals.  I think many times it comes down to timing, weather, and pricing of the home that makes all the difference in the open house.  I think the more critical piece is the overall marketing strategy and showing your clients that more can be gained from other marketing methods and not simply relying on an open house which puts them and their family out of the home for an entire day and an agent in that home, most of the time alone, and with no traffic or true buyers to present the sellers.  Ok, that's my two sense and that's speaking from the consumers side and now working on the marketing side for many agents who do and don't do open houses.  As always, your post is thought provoking and love all the great comments left giving many different perspectives.  ~Anne Marie

Christopher,

Thanks for the post. I find that open houses work for the agent, particularly in getting buyers and sometimes listings.

Most serious buyers are previewing the property on the internet and if they like what they see, they then make an appointment.

I love doing open houses --- but only in certain locations where it's fairly safe, where buyers and lookers come out in droves, where there is potentially good traffic.

When I was a newbie, open houses helped me get some market exposure, hone my people skills, challenged me to know my local market so  I can speak with confidence and conviction, pick up new clients, meet other agents who bring their clients, observe people's reaction to various things and in so doing become more sensitive to people's wants and needs.

Now that I have a few years under my belt, I still like doing them for the same things. I can point to open houses as a strong source (15% last year) of my market revenues. That's why will continue to hold open houses at select properties.

Thank you for sharing some of your experiences and thoughts on open houses.  I think the bottom line is that there is no right answer or wrong answer.  In certain areas, open houses might be a "must do".  In others, it may just be time and money not being spent wisely.  I think each Realtor needs to incorporate a plan and strategy that works to market his/her listings.  One should definitely be doing Open Houses to generate your own experience from them.  And doing just one and extrapolating from there is not good enough. 

I really admire Rita's "secrets" in terms of planning for doing the Open.  The point here is that if you do one for your seller, do not just put a sign out front and expect traffic.  It does take planning and preparation.

I believe they work better in the early part of a listing or after a price reduction.   Either way, will come back and address some of the specific comments individually.  There are some great thoughts and insights in the comments.

Chris And Stephanie - When I first started I'd do any open house I could get my hands on.  Of course, I was doing them so I felt like I was "doing something."  I don't subscribe to the theory that open houses don't sell houses or that they're just for nosy neighbors.  I look at it from the viewpoint that it only takes one person to buy a house.  If at an open house I get 10 people to look at it, they just might tell a friend about it.  That friend just might be looking for a house in that area or know someone who is.    Its about connecting the dots to me.  Most of the "leads" I've received from doing open houses usually turned out to be working with someone already or just looking.  I've never really had a lot of new clients thanks to open houses.  I think the seller's love them and it does make them feel like you're doing your job (although I hope that's not the only reason they feel that way).  I do use them in my marketing and I often explain to clients that although many agents disagree with me on the potential of the open house, I feel that it's worth it.  We only need to find one buyer.  Sure, we may not find them at the open house, but then again - we just might.

I cannot stand doing open houses. It is a total shot in the dark. I do it to appease my clients. Strangely, I am not a believer in them even though I found my house just driving by and seeing an open house. I really think the location is key. Highly visible neighborhoods vs. hidden house is a determining factor.

I believe in doing open houses in moderation as long as they are treated like an "event." Meaning properly marketed online and offline, the home must be staged and the home must be priced right. They are a great tool for Realtors to connect with potential buyers, but the reality is that MOST qualified buyes will either find a home through a Realtor or reach out directly to a listing agent via the internet.