Flippers: A perfect example of my earlier point
Flippers: A Perfect Example Of My Earlier Point OfferPad Incentivizes Realtors On May 7th, I wrote a post to help Sellers understand the pitfalls, THE
open houses: Effective or Fluff?
Open Houses: Effective of Fluff?
Originally called "Inspections" and dating back to the early 1900's, like the change in name, Open Houses today are conducted for very different reasons; and its not to sell your home!!!
I recently read that the first “Inspections” were often conducted for long hours and even for days at a time.
Agents would post ads in the newspaper to tell people the location, dates and hours. It was, at the time, one method for Realtors to lay claim on “their” listing.
But since this was long before the internet, this was an effective way to garner interest in a home and ensure potential buyers an opportunity to view the home.
Now that everyone carries a phone with Internet access, buyers can, and do, simply call the name on a yard sign to request a showing, or make the request via any number of Real Estate websites. And more often than not, that buyer will see that home, that day.
So if the only purpose one would conduct an Open House was to ensure easy access, hasn’t technology now changed that?
Yes. It has!!!
So why are Open Houses still conducted by Realtors? I mean we are the “professionals” and therefore we should know what works and what doesn’t. Right?
Right!
So there are 2 reasons Realtors continue to conduct or “hold” an Open House, despite knowing that it will NOT lead to the sale of that particular home:
- Appease Client/Seller
- Meet new Clients/Lead Generation
appease client/seller
Most Realtors hate conducting an Open House. I mean who really wants to sit in a home all day, waiting for strangers to come see the home.
So Realtors will often use Open Houses as a listing tool; hoping other agents interviewing for the job will not offer to hold an Open House.
Or, when a Realtor has agreed to over price a listing (to get the business) and the home isn’t getting any traction and no offers, Sellers will start to demand that their Agent hold an Open House. And to save their job and hold onto the listings, the agent agrees.
But here is the other twist, and I’ll talk more about this in my next post, but in a world of Real Estate Teams, guess who gets this exciting task, usually held on weekends? Yep, the newbie. The junior. The one with the least experience. And I know this, because 20 years ago I was the newbie and I did Open Houses.
meet new clients/lead generation
Now that the Listing Agent has been trapped into holding an Open House, now we can discuss why some agents conduct them often and enjoy doing so.
Open Houses are a great tool for Realtors to meet new clients. The fact is, most people that stop into an Open House are nosy neighbors or people who otherwise couldn’t step inside a home outside their budget.
The few actual buyers, who are ready today to buy a home, rarely find their home through an open house. At least, not the house that is being held open.
In fact, in the 2023 National Association of Realtors study of Buyers and Sellers, just 1% Home Buyers report starting their search at or with an Open House. And just 4% of those who purchased a home, report finding the home through an Open House.
So regardless of the reason, holding an Open House creates an opportunity for a Realtor to meet potential clients. Nosy Neighbors are future listings. And today's Dreamers are tomorrows buyers.
In fact, my very first buyers I met while holding an Open House at my very first Listing.
Since then, not a single Open House I’ve held has led to the sale of that home.
I should end with this warning about Open Houses. They can be dangerous as you’re allowing total strangers into a home; without first qualifying their identity and/or ability to purchase a home. And, other concerns focus on the theft of personal property when multiple parties walk through a home hosted by just one Realtor.
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