Tell us what you really think of open houses
National open house weekend also a chance to plug homeownership, Realtors
By Inman News, Monday, April 23, 2012.
Open house image via Shutterstock.Editor's note: This story has been updated to include a statement from the National Association of Realtors that the Realtors Nationwide Open House Weekend is not an official NAR event.
"Want to pick a fight in a roomful of real estate agents? Ask them whether they think open houses are worthwhile."
That's how reporter Mary Umberger kicked off a two-part series for Inman News examining the pros and cons of the time-honored technique of marketing homes for sale.
Today, Inman News is doing just that -- asking agents and brokers whether they hold open houses themselves, how they promote them, what they get out of them, and what they think of the upcoming Realtors Nationwide Open House Weekend (click button below to take our survey).
Some agents Umberger talked to said open houses have a low conversion rate -- many who tromp through the featured homes turn out to be curious neighbors. There are better places for agents to focus their marketing efforts, they said, like the Internet and social media channels. And open houses also raised safety concerns, both personal and legal, for some.
But others said Realtors shouldn't be too quick to give up on open houses -- sometimes, a buyer really does walk in off the street. Open houses can provide valuable feedback for sellers and generate "buzz" about a property, some agents said. And, of course, open houses can help agents prospect for clients -- some said that's the main reason they exist.
Where buyers get information about homes for sale
Internet | 88% |
Real estate agent | 87% |
Yard sign | 55% |
Open house | 45% |
Print newspaper advertisement | 30% |
Home book or magazine | 19% |
Homebuilder | 16% |
Relocation company | 4% |
Television | 4% |
Billboard | 4% |
Source: NAR 2011 "Profile of Home Buyers and Sellers" survey
There's certainly more to the Realtors Nationwide Open House Weekend than just selling houses. The annual event, which takes place this year on Saturday, April 28, and Sunday, April 29, is a chance to talk up housing markets, homeownership, and the value of working with a Realtor.
"With plentiful inventory and record-breaking housing affordability conditions, Realtors expect this year's spring homebuying season to be a busy one," begins a press release the National Association of Realtors is providing for use by local Realtor associations.
In media talking points NAR is distributing to members for the event, Realtors are advised to highlight their "unparalleled knowledge of local market conditions," which they can "leverage" to "help their clients reach their real estate goals."
NAR is reminding members that the event "not only brings buyers and sellers together, it is also an opportunity for Realtors to connect with consumers in their communities about the housing issues that matter most to them."
Realtors should communicate to the public that, "We need to make sure that any changes to current programs or incentives don't jeopardize a housing and economic recovery," an allusion to the many issues the trade group is engaged with on Capitol Hill.
NAR is opposed to any changes that would limit or undermine the current tax deduction for interest paid on mortgages on first and second homes, for example, or the exclusion from capital gains taxes of up to $500,000 in profit on the sale of a married couple's home.
NAR spokeswoman Stephanie Singer, said the Realtors Nationwide Open House Weekend is not an official NAR event.
"The name of the event is the Realtors Nationwide Open House Weekend because it is organized by the communication directors of various local and state associations," Singer said. "NAR supports these efforts, but the event itself does not originate from the national association."
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Submitted by Shantee Haynes on April 23, 2012 - 1:08pm.
An open house is only going to yield successful/unsuccessful results based on the effort you put into it. If you spend the whole 3-4 hours reading a book or a magazine, then you haven't put forth the effort into making sure that people know there is a property to see. And if done right, agents will come through with their clients...that's TWICE the feedback (that of the agent and their client)...you can't go wrong with an easy way to get people into the home to see it and use it as a means to provide more perspectives to your sellers...
Submitted by Andrea Geller on April 23, 2012 - 1:15pm.
Open houses are a piece of the pie in marketing a home. They are more effective with some properties that others. WIth more and more buyers being introduced to a property online, many times their first time through is a home they may be interested is an open house even though they are working with a real estate agent.
I have sold many properties as a result of open houses. Just as there it is not just one way to procure a seller or buyer, there is not one way that works all the time to get the sale.
Andrea Geller, Broker Associate
Hot Property® Coldwell Banker Residential Brokerage
3740 N Southport
Chicago, IL 60613
(773)809-3090
www.andreageller.net
Submitted by Michele Nixon on April 23, 2012 - 1:20pm.
I agree with Shantee completely. If you make the open house an event, people will respond to it as such.
I think the profile above tells the story, though. If people aren't at their computers, they are out driving around. So, in that respect, "yard sign" and "open house" are lumped together.
- Have you visited the neighbors to tell them of the open house?
- Do you have comps available?
- Are you showing prospective buyers a financing profile for the home?
- Has your seller agreed to dual agency and, if not, what's your back up plan?
And, for the other side of open houses:
- Do you have other listings in the neighborhood in case this home doesn't quite fit a prospective buyer's needs?
Submitted by William Metzker on April 23, 2012 - 6:14pm.
I've done too many houses where no one comes, even the neighbors. And no one would have come even if I'd guaranteed the Second Coming of Jesus to occur.
A few sellers want no part of them, but most do, because they've bought into the myth that people often buy homes during on open house. Statistically, that's far from true. But open houses can serve two purposes. The first is to get buyer-clients. The second, if the home is a great property, well-priced and well-located, is to create buzz.
I hate them, but if I were a beginning agent, I'd beg to host as many open houses as I could.
Submitted by Scott Gill on April 23, 2012 - 6:28pm.
A long time friend and 35 year Professional Broker, with all sorts of designations (CRS, CRB, EPro, GRI, etc) and outstanding records of productions over decades, told me that an "Open House" is the penalty a Realtor pays for having a seller "sell the Realtor" that his/her home is worth more than legitimate market conditions can sustain. I think he's correct!
Scott Gill
Sr. Vice President
Realty World Northern CA, Inc.
Submitted by Steve McKenna on April 24, 2012 - 8:15am.
Open houses have their place in the marketing mix, just as yard signs, ads, and postcards do. You wouldn't solely market a house using postcard, nor would you rely on an open house as your only means of promotion.
It takes multiple marketing touches to engage buyers (and sellers). I agree with the comment from Andrea Geller, an open house is only one piece of the pie.
And at the end of the day, it doesn't matter whether WE think open houses are effective. We should be asking potential buyers and sellers whether THEY think it is useful in the home buying/selling process.
Steve McKenna
www.yourhomeforsale.com
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