I agree, open houses are a total waste of eveyone's time be they to the public or to broker's only. In my five year career I've picked up only one client at an open house and that was in the very begining- I've NEVER received an offer subsequent to an open house.

Adam,

I would have to agree with you in many respects that Open Houses are just not worth the aggrivation to the Seller anymore. Many savvy Sellers understand that point and will tell you it's your choice to hold their house open or not.

You also make another valid point. Many agents will not AND cannot drop their commission. I listed and sold a townhouse last November and was able to drop my commission to 5% because I represented both Buyer and Seller. By March, my Qualifying Broker would not allow such to occur. His position:company owners would penalize him for cutting the commission. I was willing to do so to help my Seller who was in serious financial straits due to health problems.

Buyers and Sellers need to understand that it is not always the Agents' choice in performing an Open House nor is it their choice in cutting commission. Plus, if they knew of the research completed lately by Baylor University, Open Houses are not the most effective weapon in an Agents' arsenal to sell a house.

Lynn E. Williams
REALTOR/Associate Broker/ePro
Coldwell Banker Legacy
Rio Rancho,NM
505-977-9733
LEWilliams@CBLegacyNM.com

Let's not forget the danger aspect of open houses. Nowadays, many people going to open houses are their for alterior motives.

This is a 30+ year old subject, I swear.

I think Open Houses are successful in certain parts of the country and not as successful in others.

It also depends on the SPECIFIC market For example, gated communities. Open Houses are one of the few times that the public can gain entrance to view homes and the community. They work well there.

Rural/suburban communities: Urban buyers utilize the Sunday Open houses.

New Construction/Developments: It is not uncommon to see Saturday & Sunday Open House on the model home/spec house to attract weekend buyers.

I think conducting an Open House is an art. You have to be a savvy enough Seller Agent to write a compelling Open House ad. You have to make sure that your area fellow agents are aware of the Open House to encourage them to bring their buyers. You have to start advertising early enough (hey, how about a WEEK ahead!) so that buyers know about the Open House BEFORE THE DAY OF THE OPEN HOUSE.

If you use the 1960-1990's style of Open Housing, you probably are not bringing in the traffic you need.

I have sold in rural Midwest and am currently on the NJ Shore / East Coast.

Open Houses here do bring in the NYC traffic as well as the move-up buyers. The average house in my market sells for $1.5MIL and Open Houses are expected by both buyers and sellers in our market. Homes normally sell in less than 90 days here and it is not atypical for an agent to have at least 2 Open Houses during that time.

As for agents lowering a commission because of an Open House? This is the first I have ever heard of that. I don't even understand the relevance.

If you don't like doing open houses, but your seller insists, ask another agent in your office to do your open house for you. Your lack of enthusiasm will show through to both your Seller and potential buyers.

We have to remember that right now is neither a Buyer's or Seller's market

An Open House is just one of many tools that can be utilitized to promote the property. It is not a cure all, just like planting a sign in the yard is not a cure all.

But both ARE marketing tools. You simply need to know what works the most effectively in your market.

What works in Manhattan may or may not work in Peoria.

Victoria
20 Year Realtor Veteran

I have been doing open house for the past 2 years every weekend. I disagree that they are a waste of time. This is a great way to get your name out there in the neighborhood you would like to work, you meet so many people and potential sellers. I have gotten more listings and buyers than if I had not done open houses. I have been an agent for 7 years, the first 5 years I did not do open houses CONSISTENTLY and when you don't have listings and you are new in the industry you have to work hard to get exposure, even if that means sitting at empty open houses for 3 - 4 weeks, neighbors see your diligence and they will call you when they are ready to sell. What helps traffic to your open houses is put a sign at your listing stating Open House every Sat. 1-4 or whatever, and posting the open house on Craig's List every Friday before the open house. It works for me.

Open houses are proving to be a waste of time. Buyers can view houses on line and select the ones that they wish to visit. Agents can contact more clients on line, during those 2 hours, than they can possibly see at an open house.

I'm a cash buyer and my routine is, given that I have all the pertinent details and I've done my homework re area price levels and infrastructure, price movement and previous selling price(s), is to check out a property from the road first, drive around a little (get a feel of the community) and talk to some neighbors.
If that produces a positive feel then I'll either make an app with the agent or attend an OH. Re the latter, I go with the view that the majority of agents use the OH as an opportunity to sell themselves. Is the OH a positive part of the overall marketing strategy for the seller? It has to be because, especially considering the current climate, if you want to sell you need to cover all bases. Given that, if your agent is useless and in my view I'd send 95% of them back for training, then an OH moves up the scale in level of importance. On the downside, the majority of viewers for OH are locals who always wanted to see inside or serial viewers our for a jaunt but that's not a reason to ignore the potential. And hey, innovate a little and I don't mean tit-bits and drinks. Remember, you are SELLING and we public like to be sold to. Know everything about the property, the local infrastructure, prices, possibilities to improve, to add but, don't oversell, check the reaction, work on the positive responses, watch the buyer's facial expressions. Know the signs and don't presume that just because someone has bothered to turn up to an OH that he knows anything. Always presume the opposite.
However, my MAIN advice to sellers/agents - PITCH THE PRICE AT A LEVEL THAT WILL SELL THE PROPERTY!. Far too many houses out there priced up to a point that simply add it to the glut of unsolds, which helps the market stagnate even further and delays the eventual upturn.
Michael
PS: and what was that from Victoria? "We have to remember that right now is neither a Buyer's or Seller's market". HELLO!

I agree with Victoria and Christina. We can only strive for the maximum exposure for the higher chance/probability of the sale. We should weigh in carefully for the best and maximum use of time, cost and effort.

I must say I learned tremendously by sitting for my broker's open house. Human behavior is something you can only learn by watching and interacting.

Veterans are constantly re-inventing the marketing strategy to make it work today. Before you decide to eliminate, you should give it the best attempt.

I do quite a few open houses. I find some most rewarding as I usually meet someone new. Another prospect. Don't feel they are useless by any means...
have sold a few to open house buyers and always get a new client/customer at every open house. Still expected in my market area, and those who do them, are the top producers. Signs are going up now for the weekend.

Open Houses.....All good points... We went to a Super Open House concept. Every other weekend we have 4 open houses with a a guest...Sometimes Elvis, sometimes a clown...Lots of traffic....you add a spark to your marketing... visit me on http://smartprospecting.com
Best of 2008 ..Terry McDaniel
Alamo, California

Open Houses are an archaic way of selling homes. They may have been great before the Internet, but now, you will be doing more for the seller if you provide virtual tours.

Open houses are great for plastering your name all over the neighborhood and meeting motivated buyers. 80% of my business last year was from contacts at open house. But not every property and area lends itself to a good open house. You have to know which homes are "magnets" for buyers. I will hold another agent's listing open if it's in a great area!

I have been in the business almost 2 years now.

I sold my first house in the first 30 days after getting my license via an Open House.
Since that time I have either sold my own listing via an Open House or sold another in the neighborhood by meeting someone at my Open House.

I continue to get listings by showing I work hard in my farm by having Open Houses. By consistently having Open Houses I am known as the neighbornood expert.

Know your farm, become the expert and people will come to you.

My Open Houses are the core of my business. Within the first year I became Top Producer out of my office.

Open Houses work but you have to work smart. Every ad is strategically written and every sign is strategically placed.

Dear Adam,

I live in a rural area that has many visitors on the weekends. Open Houses here are important for them to see what our market has to offer. Of course many Sellers do not realize that perhaps 1% of Open Houses actually find a qualified Buyer but I do Open Houses to find Buyers which all of our markets desperately need.

Denise Meek
Realtor
Kern River Valley Realty
Lake Isabella, CA

I agree that open houses overall are much less effective than they used to be. However, as someone earlier said, it depends on the area of the city - I am very choosy about where I hold opens. In areas where opens are not effective, I play up the virtual tour option.

Open houses will be a success during the peak season Feb-Mid June
and again Mid Sept to mid Nov.
We will do what is best to please the seller, be in the community and attract buyers.

In our area, Broker open houses are done on a weekly basis immediately following our sales meeting. Sometimes we have several homes open by various agents. For example: the first agent will offer a salad at the first one, another agent will provide a main course at the 2nd, then yet another agent will offer desert at a 3rd, and your business card turned to a 4th agent at the 4th house. The card is initialed at each house and then turned in to the last agent/house, then entered into a drawing for a $50 - or more - Gas Card with each agent giving his/her share! This gets more agents familiar with the homes and therefore, is more excited about selling one of these particular homes! These are done at lunchtime and are very well attended by agents from several offices.

Even if many of us agree that having an "Open House" for a seller is of marginal value, at best (especially in a buyer's market, and when the local practice is aimed at brokers as opposed to the public). The real issue may be, what do we replace this activity with, which in the eyes of the seller is perceived to be more effective?

Does anyone have any suggestions?

Frank J. Pimental
Realtor
Marty Jones Realty, Inc.
Cashiers, NC 28717

Open houses are a major part of our business! Stats show that over 74% of buyers who visit an open house buy in 6-8 months. I'm confident in my skills to acquire a buyer or two from one of my opens in a year. In my eyes, that more than pays for itself. One of my agents acquires more than 50% of her business from open houses, whether it's her listing or not! The key to a successful open house is follow up! Let's face it, agents suck @ follow up. The ones who make the calls are the ones who sell...period! Open houses are a key part of our business model and they make all parties happy; the seller loves the exposure, the buyer appreciates looking through a home w/out their agent and agent holding the house open is prospecting for a new client! If I were you, I would hold a listing open every weekend!

I would rather be holding an open house than sitting around waiting for the phone to ring. I feel that's the "norm" for some of the older Realtors that hit it big in 04-05. But the phone ain't ringing unless it's a computer calling trying to sell you something. I am a 1 year old in this business, but I have a ton of Auto customers from my other job (selling used cars). I email them to let them know I am having an O.H. on Friday for the Sunday OH. Now I bring my laptop and can get some work done while I am there in this empty house, so all is not wasted. Hopefully I will get some nosey neighbor drifting in for a soda or cookies (that my wife makes fresh) and I can watch the ball game or strike up some conversation with a potential client. It depends on what you call a successfulO.H. If I can give my card to a potential client and strike up some intrest for the future than it is a good day for me. If no-one shows well then I got some work done on the computer while watching the ball game and eating my wives cookies! It's still a good day! In this time of hurry, hurry, hurry, we don't stop and slow down enough. An Open House is always a good time to do that, and take a breath for 3 hours. It beats spending 3 hours at the office. I am having an OH next weekend and if anyone is interested on how it goes feel free to email me and I will let you know honestly what happened. I live in a resort area of Northern Ca. mostly retired folks. There are younger families moving into the County everyday because they are getting priced out of the bigger cities they grew up in. So here, we are in a buyer's Market. You can bet I'll be having Open Houses as long as I got good listings that work for the younger families that are looking. It's seems they have the gas money to drive around too. Good Luck with your Open House! Don't totally discount them yet.

Before I got into real estate and I was looking for a house to purchase 2 years ago, I remember being at an OH and the agent saying she had never made a sale from one. After becoming an agent last December, my first two listings BOTH generated their buyers at the Open Houses I hosted. It depends on how you position the house, as well as what kind of luck you have. On the second listing, the buyer was unrepresented so I ended up with both sides.

So, for the time being, I'm as pro-open house as they come.

I believe in some areas Open Houses are a great way to find business. It depends on your marketplace. In my area they are truly a waste of time and not particularly safe. We are a resort market with most of our buyers coming from larger Metro areas. Because of this you never know whether the person coming to the Open House is really a buyer or someone scoping out the house or agent for not so savory motives. I don't do them and my sellers understand.

I'm a mortgage broker and have been co-hosting Open Houses here in Nashville and we're bringing in new business, 10-20 new leads each month, selling homes, and having allot of fun with it! You know, maybe the reason "hates" something is because they don't understand it; they're not good at it; they're not getting the desired results. This is a new era- old school ways of hosting open houses went out with bell bottoms, disco, and beepers.

I find the comments by those who favor holding open houses very interesting. After all these years nothing has changed. Two key reasons for holding open houses still prevail. 1.) the sellers expect it. 2.) It's a great way to meet buyers.
My question for you is "how many homes have you sold directly as a result of holding an open house?" What is your sales ratio per open house? I thought that when we list a home we represent the sellers best interest. You as an agent already know the odds of the home selling as a result of the open house are 98% that it won't sell, and yet your willing to kick the seller out of the home for 2 or 3 hours -hoping to make contact with a buyer that you can link up with later and sell them something else. Seems to me that is looking out for your interests, finding a buyer for another home, not the sellers. I know that there are exceptions. New homes, really sharp homes priced very competitively maybe just a bit under the competition etc., have a chance to sell. But overall, why decieve sellers? If you are willing to commit to the open house for the 2%, do it, but only after you have informed the seller of the odds.
I have made it a practice for many years to be honest up front when listing a home. I tell them I don't do open houses unless you the seller want me to, and here is why. I explain the whole process, how it works, why it doesn't work and why agents hold open houses. I have never had an objection. They are alway thankful and often releived that they won't have to deal with and open house.
I have many other effective ways of marketing a home, getting the exposure and finding buyers. Deception is not one of them. Let's elevate our Professionalism. I have not lost one listing or sale for not having an open house over at least the last 10 years. My sellers spend Sunday afternoons as they want to and I enjoy spending Sundays with my family doing what I want to.

Personally speaking, I find I work best with referrals and folks who know me. Open houses work well for those who enjoy meeting new people and are new in the business. I have never sold a home during an open house either, but I have talked with other Realtors who have had success with this. I think each individual needs to assess their strengths and weaknesses, and then work from their strength. My strenths are service, honesty, experience and listening to my clients. The better you understand what you have to offer clients, the more successful you will be. Oh, and P.S., When your cell phone rings, remember it is the "sound of money" not an intrusion. Sincerely,
Lynda Lynde, Broker, CRS, GRI
Lynda Lynde Realty, LLC
Helena, Montana
Buyer's Agent and "Win-Win" Realtor

I do not think it is fair or ethical to state (particularly to sellers) that an agent who uses "open house" marketing techniques is being deceptive. What works for the individual is whats best, and best for the sellers they represent. Open House marketing has worked for me. After 32 years of real estate experience I am combining old marketing methods with new ones, and still learning. Just because I am monitoring an open house does not mean that my cell is off or my virtual tours have shut down. The person who says it is deceitful to hold open houses (who did not leave a name) owes a lot of hard working associates an appology.
O. Paul Elder Broker/Associate
Results Realty
Live Oak. Fl

I'm with the group of people that don't believe in Open Houses - especially in today's real estate climate.

1) Gas prices are so high most people aren't driving aimlessly looking at Open Houses

2) With the internet, people can see the homes anytime of the day or night without having to drive anywhere

3) With our buyers market, the odds of getting someone to drive by your Open House and stop are low.

I see the point some have made that certain areas will still have good results at Open Houses - but the majority will not and have not in my experience.

I have not yet met an agent that has received good results from the Open Houses they do. Sure, every agent will have worked a few prospects with closings - but consider the amount of time you've had to put into those OH's to get those few prospects and it's still not a good use of time.

I tell every seller on my listing presentation that I don't do open houses - I will do one broker open with food and prizes and the public is always welcome to come in. I explain why I don't do the standard weekend opens and so far no one has balked and I haven't lost a listing because of it.

I do believe that open houses are still worthwhile, in particular for certain properties. For instance, you have a home that is perhaps not as appealing on the outside as the inside. People driving by are not likely to schedule an appointment to see this home. They may, however, stop in at an open house.

Pictures on the internet are not the be all and end all. Sometimes an in person look can make all the difference. I have sold two homes in the last year at open houses. One that had a waterview you would not know existed from the outside of the home and another on a busy street that was actually rather private from the inside.

Don't rule open houses out. Look at each home on its own merits and then decide whether it is worthwhile.

Yours truly,
Christopher Rich - REALTOR
Your Fairfield County CT Real Estate Agent
William Raveis Real Estate
http://www.fairfieldcountyrealestate.com

I agree with the agent who said they felt open houses have different levels of success in different areas of the country.

I was previously active in Northern NJ and Eastern PA where I found the use of an Open House very successful. I would sell an average of two to three houses per year as a direct result of the Open House (In one instance I had two offers in the same afternoon on the same house!). Buyers expect/demand them in these areas.

I have recentlty relocated to the Dallas area where I am currently licensed and find that it is more difficult and less rewarding to hold Open Houses. Signage regulations are much more stringent and the presence of so many builders offering new homes with "special pricing" drives attendance way down. This seems to be the concensus of several agents in my office.

As I plan my strategy to prospect and secure clients in Texas, I will spend less time on Open Houses in Texas.

Dear Adam: Your article is correct. However, I look at an open houses from a different perspective. Sure some buyers that walk in are working with other Realtors. But this gives me a one-on-one personal interview with potential buyers. I usually can turn this open house into a listing or buying presentation if they are interested. In 21 years I've only sold 3 homes at open houses, but it's gained me 100's of clients and referrals.

Thanks,
Gary Maglinger, ABR, GRI, AHS
REMAX Professional Realty Group
www.Owensboro.biz

Think outside the box. I listed a funky Geodesic dome home years ago. There were no comparables, so no lender would finance it. I made up a big foamcore board sign with Goedesic Home Tour Open House and had over 50 people stop in, & generated two offers that day. What can you do to make your listing different from all the others?

Open House? Maybe, but only if it is priced right. All the open houses in the world will not get an overpriced listing sold!

I totally disagree with Adams assumption that open houses are a waste of time these day. I think it is the quickest way to find the right buyer and since the consumer, and product are already present at the open house this should make it even easier to pick up buyers.

Open houses are only beneficial to agents, as we garner prospects, with no chances of selling the property. As a matter of fact, there were times when I hoped I wouldn't sell the open house quickly, due to the amount of prospects gained.

You hit it right on. Open houses only real purpose in todays market is to show the seller that your making some effort to do something to try and sell their house.

Buyers who think they are going to save money by going to a listing agent directly are fools. They are wasting a load of time, and are never represented. They'll be best off by hiring a competent buyers agent.

I have had my license 18 months. I try to do an open house once a month. The purpose to me, for an open house, is for exposure of the house and myself. Very rare is the day a sale happens do to the open house. That being said, I have built a farm from the people who have viewed the house. I email them weekly and send a monthly mailing. This has proved to be good for future sales and a couple have blended into friends.

I am a newbie - only licensed in February of this year and I did 2 open houses for one of my listings and not one person showed up! I advertised the Open House twice, placed signs twice, printed up special brochures, baked cookies, made refreshments, created a sign in sheet set up balloons! I felt it was a complete waste of my time, the sellers time (who spent the week prior prepping and staging their home). Because the house is over priced (which is something I expressed from the beginning to my seller) I decided to not list thie price in the OH newspaper ad. This home is located in the Poconos (PA) and weekend traffic is heavy - not even the directional signage I spent an hour placing were helpful. THe lesson I learned... unless the house is a "BUY" it's not worth spending the money and time for an Open House!

I have been licensed since the end of June. I have held 2 open houses for other agents in my office and have not had 1 person even show up to either one of these.
Starting out, my goal in doing the open houses was/is not to sell that house, but to get contacts that I could build on. When no one shows up, it is difficult to even do that.
I am beginning to feel like they are a waste of time, Saturdays with hubby and kids is important to me, so I'm starting to not look forward to holding them. HOWEVER, I just found out that the OH ads go out in the Saturday edition. UMMMM...if people don't get this particular publication and read it Saturday morning, I get no one. I'm going to list the next ones on Craigs List and use a few other ideas. I guess what I am saying is that the jury is still out on this one with me personally, but you can see how I'm leaning...

Open houses can be productive if done properly. I've seen open house agents to all kinds of things to turn off visitors/buyers. They hover over them every step of the way, ask too many prying questions, show little enthusiam, and aren't prepared to answer good questions. Some can't even provide names of the local schools. Sellers often shop for agents by going to open houses. Put out at least ten directional signs (in most locations) and sell yourself to every visitor.

I use to think that open house's were a waste of time till I sold a 1.2 Million Dollar home off one.
sometimes local realtors don't know or show homes to prospects. they pre judge a home. I had a open homes for a new home last fall and the buyer found the open and then came back with their Realtor and bought the home.

I do work open houses - got my license in February & had my only sale so far this year to a person I met at an open house who selected me because she thought I was organized. I also do mailings, have a 1st time home buyer seminar scheduled, circulate a newsletter, have a brochure box at a Metro stop. As a fairly new agent I would like to hear what specific marketing DOES work for succesful agents. It is encouraging & enlighting to hear what works - esp in urban areas. Satistics indicate that agents sell about 48% of homes that sell - what is the best way to get other agents to view your properties? Email does not seem to work... My Broker's Open was a bust & I spent a lot of time & money for a quality set-up. Ideas on how to get agents to engage?

THE BEST REASON FOR REALTORS TO HAVE OPEN HOUSES: TONS OF INSTANT FEEDBACK FROM BUYERS.

Marketing is essential in a buyers market and I love the feedback I solicit from those who stop by my open houses.

Most of the people coming to look at open houses have realtors and want to see houses outside their price range in the neighborhood or don't yet want to work with a realtor but are in "buying mode." I want to know what buyers in the area are looking for.

Many times they are excited about an aspect of the house and think of great uses for the space that I didn't think of. I then use this information to target other like minded buyers in my online advertising.

Although not typical, one of my listings received a full price offer because when the buyer and her realtor came by to get a buyer's packet during an open house the place was packed. Instead of the typical low ball offer they decided not to risk it and offered full price. That was truly my most successful open house!

FYI... 99% of the people who come to my open houses find them on Craig's List. Buyers are looking on CL, they just tell their realtor about the house and don't respond to the ad itself.

We live in an time where the internet allows buyers to do much of their own research. As a buyer's agent it is our job to to expand the search, notice what the buyer seems most attracted to and suggest ways/places for our buyers to search for homes. Real estate is a team effort between the agent and client.

Jen Grauer
Grauer Real Estate
Denver, CO

I have been a Realtor for over 20 years in Canada. Our system is somewhat different than some parts of the USA. We do not have specific offices for buyers only and sellers only. We can represent both parties under dual agency. That being said...

Open houses are usually for the sellers, to make them happy. I agree, most buyers today are tech savvy and search the internet everyday for new listings regardless if they are under contract to an agent. 95% of buyers who come through the door are under contract with an agent and have nothing better to do than see homes and those homes are usually above their price range. Some agents are too lazy to show properties so they send their buyers out to specific listings that are having open houses on the weekend.

Conversely, open houses are can work well because you meet a person who is about to sell and they are scouting out agents at open house.

I also use my time at open houses to cold call the neighbours and invite them to come over and see the house. Neighbours love an invitation.

I agree as well, it depends on the area you work in. Some areas, especially higher priced here in Toronto, the buyers are always working with a Realtor.

Happy Open Housing to all.