OPEN HOUSES FOR SELLING HOMES? They’re Losing Steam Fast!
OPEN HOUSES FOR SELLING HOMES? They’re Losing Steam Fast!
PUBLIC OPENS GENERATE SALES LEADS FOR REALTORS BUT RARELY SELL THE HOME!
Early in my real estate career – some twelve years or more ago – each and every Sunday afternoon was personally booked for an Open House on one or more of my residential listings.
Depending on the area in Chicago in which the Open was held attendance ranged from a couple of "nosy neighbors" to two dozen families or more. It seemed more affluent Chicago Neighborhoods and Suburbs (Edgebrook Wilmette Skokie Sauganash Norwood Park Lakeview Lincoln Square and Ravenswood for example) generated more visitors than more middle class Chicago neighborhoods (like Portage Park Dunning and Avondale).
There was one thing these Open Houses all had in common however:
Rarely did they generate a qualified buyer interested in purchasing the house being held open! Indeed over the years our Team has sold nearly 500 homes condos and investment properties. How many Chicago-area properties sold as a result of an Open House?
Only Three! And Two of these home buyers were sent by their own Buyer’s Agents – who were taking Sundays off!
In other words two of these three Open House Attendees might have seen the house anyway – during a separate agent-scheduled appointment.
Many home sellers see the Open House as an important tool and become resistant when told about their lack of effectiveness. Some feel it seems as the Open House is the most visible manifestation that the Realtor they selected is actually WORKING to sell their home. Others agree to hold their house open – for everyone to see – but only reluctantly.
The truth is – only 7% of home buyers use the traditional Open House to first see the home they eventually purchase. Most you can imagine are first introduced to their new home via the Internet. National Association of Realtors research indicate nearly 84% of home buyers begin their new home search this way.
Here in Chicago and across the U.S. many in real estate are experiencing the same findings. Some say they have NEVER sold a house as a result of holding it open while some say "lead generation" is the only benefit of a Public Residential Open House. Most experienced Realtors generally recruit a "rookie" in need of business leads to sit their open houses for them.
When the market was stronger in Chicago a couple of years ago Open Houses in some neighborhoods provided the first and often only look at the house for sale. Attractive homes priced right were often sold in multiple offers by the middle of the following week. Today however according to agents who hold them many Open Houses attract only casual lookers with no true intention to buy.
The Open House can serve a couple of useful purposes however.
It can generate candid feedback about how the home shows and perhaps how it is priced for market. Also it could generate valuable word of mouth advertising – visitors can "spread the word" to those they know.
Broker’s Open Houses held mid-week for local agents to preview local inventory network with other agents and share home details with their active buyer clients for later viewing are effective especially in popular neighborhoods with competing inventory.
Finally an Open House can provide a "goal date" periodically for home sellers to make sure their property is staged to show perfectly.
In terms of effectiveness however effective Internet promotion may be a better use of time and money.
See Lew Sichelman’s article in last Sunday’s Chicago Tribune for more information and quotes from agents from across the country.
DEAN MOSS & DEAN’S TEAM CHICAGO
