On a recent post, one of my esteemed friends from Florida discussed his views on open houses. He offered some statistical data and suggested that any agent that included them in a marketing plan during a listing presentation should be thrown out the door.
I won't disagree with the statistical analysis that was presented. I am wondering why it is even an issue. He and many others feel that open houses are a waste of time. I accept that. He and others are quick to point out that one of the side benefits of holding an open house is that the agent may come in contact with buyers or others that are considering selling their home. Some how, this is presented as a bad thing for the owner of the home.
He is quick to point out all of the possible dangers. He mentions theft, injury to visitors, injury to the agent as things that may occur. He fails to acknowledge that theft can occur when visitors view the home with their agent, injury may occur when visitors visit the home with their agent, injury may occur to the agent when they are showing the home. Somehow, he and others perceive that bad things only happen during the open house. There is always risk. A meteor may strike the house during an open house as well. The same meteor would strike the house if no one was there when it arrived. Just because one event occurs during another does not create a causational relationship of one with the other.
A broker's open is a good opportunity to showcase the home for other agents. This showcase often increases the awareness of the home with other agents in the market. Increased awareness may land the home on a short list in the future.
People do visit open houses. In some cases, people buy the house. In other cases, neighbors recommend the home to a friend that is seeking to move into the neighborhood. There are times that viewing a home will enable the buyer to focus on exactly what they are seeking. In these cases, one open house helps sell another. I personally believe that open houses are a long continuem of product on the market. Making the product available for viewing does help increase the overall sales figure for the market.
It is one thing, to adamantly believe there is no value to your personally holding an open house. If you feel that way, I would suggest your chance for success in holding open houses will be limited by your attitude regarding them. I do not feel that they should be the "deal breaker" regarding hiring an agent. Throwing an agent out because an open house may or may not be part of their marketing plan is short sighted at best.
The beauty of our profession is found in the wide array of opportunities available to us to use in our day to day operations. Post cards work for some, farming works for others. Phone calls works for some and personal "pop bys" work for others. Shown by appointment only works for some and open houses works for others.
If we are to stop marketing in every fashion that is not singular in purpose, our costs would increase significantly. If we are to be honest about all the reasons we market, our listing appointments would go on for hours. Should we toss every agent that suggests the use of craig's list because in addition to marketing the home, it may bring potential buyers and sellers? Should we toss every agent that suggests placement of the home on their personal website because in addition to marketing the home, it may bring potential buyers and sellers? I, for one, think not.
I think that our job is to expose the home to as many potential buyers as possible. The greater the pool of potential buyers, the more likely we may receive an offer on the property. The ad for the open house brings exposure. The neighborhood notification about the open house brings exposure. The signage on the street regarding the open house brings exposure. The open house brings exposure. Exposure brings the potential for opportunity.
I will accept that he sees no value in them. I accept that others may see no value in them. Neither of those facts is sufficient to denigrate those that hold them nor is it evidence that they have no worth.
 |
|
|
Tell me what you want to accomplish, I will listen, counsel and encourage you. I will work with you every step of the way until the transaction is complete. First time buyers and military welcome.
Books and things I can't put down or part with........
How much is that bathroom in the corner?
Changes in rules will reduce your buying power in Spring 2008
Single Family Homes in Montgomery County for $400,000 and lower???
I have asked before...why rent when you can own
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2008 ActiveRain Corp. All Rights Reserved
Oh...thank you John!!! This was a good one! So often there will be opinionated people on different subjects although I have to disagree with some of the other posts as well. You are very insightful to point out that it will be in the attitude of the agent, that people DO visit open houses, and might I add that it DOES depend on the area as well. Oahu is closely knit with neighborhoods close together. We have just so much buildable land (obviously) so therefore, the Open Houses (resales) are definitely tops for needing exposure .... you are also correct about thefts, injury etc. happening at any other time during showing appointments.....and I also might add that at an Open House....at lease WE ...who are representing the seller is there to monitor....rather than worrying about other agents and their showing practices. (i.e. staying outside to smoke while their clients view the home) Thanks...you did a good job.
Sally - I do appreciate your feedback. It is my hope to present a fair and balanced opinion from the other side of the coin. There is no reason to resort to frustration. We are all in this together and rather than chew up and spit out our fellow agents, I would rather lift them up. Every success that any of us enjoys is a success for all of us.
Hey J-Mac - I have no problem with you telling the world I was your friendly Florida Realtor! The answer I gave to you on my blog - Realtors not up to the challenge! - was as follows - and I think it fits this main post as well:
As always from you a very well thought out piece and you defend your ground very well. The statistics however do not bear you out and I believe if an agent is saying that this is part of their marketing plan, then a seller should be aware that they don't sell houses. Therefore why hold them? It is the second benefit that drives Realtors to do that and I don't believe you should be inside someone else's home knowing you are not going to sell it while you market yourself. Unless of course the seller is fully aware of the likelihood of a sale and all the reasons its being done.
As for why I did this on the radio - there are two reasons. Sure it is great radio, but I also think it is important to inform my listeners of the facts surrounding real estate. FACT - less than 1% of buyers find the home they purchase through an open house.
And yes - bad things happen in homes even when they are not for sale. Why invite the possibility for an exercise that won't sell your home.
As for the no calls - I'm not sure you are right. I think simply that those that hold them KNOW they won't sell the house and they didn't want to expose themselves to the challenge.
JMac, there've been a lot of posts here as of late that managed to to be disparaging, some without really meaning to. I think we are all entitled to our opinions of what works and what doesn't, and statistics on something like that are not a terribly accurate tool (they generally aren't anyway, or we'd all have a quarter of a person in our households). I think the only real issue I have with what Simonsaid and posted here is that it seems rather self-serving, this whole putting someone else's way of doing business down thing. Unless someone's marketing is unethical, or illegal, it should only be appropriate to give advice on what works for you and doesn't, but I hardly think it is prudent to even suggest that a specific marketing technique makes one a worthless agent. (or anything else for that matter).
JMHO. Simon, feel free to let me have it, if you are so inclined...
John, Open Houses are a part of my marketing plan. I do not perform them myself, but have other agents do so. I may have to reconsider after reading Sally's comment, it's just that the past several have not had any people attending.
I'm not going to let you have it Inna - but please don't put words into my mouth that I didn't say. I certainly did not say that anyone was worthless for example. I strongly believe that if the Realtor does not inform the potential seller of two things then the act is unethical. Those two things are (1). It is unlikely to sell your house and (2) there is a benefit to me because I may well attract other buyers and sellers for other homes. If everyone did that I wouldn't have any kind of a problem with it. As a radio host i have a duty to inform my listeners. I want them to know what to look for and that is why i do what I do.
Inna - Heavens to betsy.........no one is going to have at with you unless they go through me.(your hubby, kids and Jen are exceptions).
Marc - Every market is different and to be honest, every agent is different. If something works for you, I think you should continue on that path.
Simon - Simon - Simon - In response to your response to Inna's response to my post. It may be a bit far fetched but sometimes I have to use glaring examples. You violate ethics when you do something you know to be wrong. If I believe that holding a house open will increase the opportunity to sell the home, I am bound to do so. It would be unethical for me to fail to do so. If, on the other hand, I hold the opinion that it is a waste of time, I must share that with my client as well.
Once again, the beauty of our job is that we determine what we believe works and we are not bound by a firm set of rules regarding marketing. In addition to the above, there is nothing within the bounds of ethical behavior that requires me or any agent to mention that Simon Conway feels open houses are a waste of time. There are a multitude of marketing techniques that are available to us. It is foolhardy to believe that any one of us has all the answers.
Your ethical dilema does not exist for those that do believe that the practice helps sell the home.
If you wish to examine a parallel debate, review the division between those that believe life begins as conception and those that feel life begins at birth. Both sides truly believe that they are correct and neither side is correct. It truly is a matter of what you believe to be true.
Wow John! Never thought this would incorporate a Roe v. Wade discussion! Anyway, if you read all I have said on this subject (and I freely admit there is a lot), you will find that I am in near perfect harmony with you my friend. I certainly do not believe that I come even close to knowing it all - or even half of it! If I was as old as you I might know half of it! (OK now people - before you all go and jump on me for that one, John is a friend. You wouldn't believe the kind of things he has said to me! But we love each other. We had a nice long telephone conversation today!) I believe the ethical problem is there without full disclosure. Pure and simple.
Please note that full disclosure does not include giving Simon L Conway's opinion on any matter to your clients or potential clients. No babies or potential babies were harmed as a result of this comment.
Ok, Simon (J-Mac, I promise this is the last time i am highjacking your comment section to resond to Simon).
Here goes: You did not use the word "worthless" or "idiots" in your blog, or your radio broadcast I am guessing, however it was more than implied in what you did say. There was pretty much no way to interpret your comments to your listeners as anything other than "If the agent says they will hold open houses as part of their marketing, that agent is not worthy of your listing." As for full disclosure in this case, it would only be valid or appropriate if the agent marketing the property held the same beliefs as you do, and obviously if they thought that it was a waste of time, they wouldn't be doing it.
As to your other point that you feel needs to be disclosed, the one about the agent deriving a benefit from and Open House: I think every time an agent runs an ad of any kind in any medium they stand a chance of attracting a potential buyer. Do we disclose that? I am with Nietzsche when it comes to altruism... In the end, even that is selfish:-)
Again, pardon me JMac :-)
John, when I entered the business I was told one of the best things I could do was hold Opens every Sunday, not to sell the home but to gain buyers. I have to say neither of those things have happened as a result of holding an Open House, but I still do them at the request of my sellers. I always tell them their house probably won't sell by doing an Open but it's a good way to market myself.
Learning as a result of respectful disagreements is what I am here for. Thanks guys for keeping it real...finally an Open House blog where nobody got hurt and we are beyond the 10th comment. LOL!
Inna - there have been blog entries by Dan Forbes, myself and others on this subject. Most of those holding OHs say explicitly that the house won't sell, but that it's a good way to market themselves. See Joddie's comments as an example. One even said they held them to "keep the peace". Disclosure is all I am after.
Joddie - thanks for making my point for me. :)
Amanda - good to see you! Yes it is possible to have disagreements without the name calling. John and I do it all the time.
Ah yes, another reason for me to prefer buyers over sellers. Great information. Oh, any AR's who wants to get into silly arguments, going back in forth, please come to my blogs to do the same. I could use the points.
If YOU THINK a house won't sell from an open house, then it won't. It will be the old "self fullfilling prophecy" we all learned about in basic Psyhology 101. I think it's all in your attitude about holding open houses.
I felt the same way as a lot of people and I really didn't like open houses for a long time (I would rather have a root canal than hold an open). I was pleasently suprised in the heat of August this year when I held my listing open.
I hadn't held an open house in 2 years. The seller had baked Homemade Choclate chip AND Raisin Oatmeal cookies and left the place spotless. I felt that the least I could do was change my attitude for just one day about open houses and try to enjoy having one for once!
Don't you know, Low and Behold - One couple stopped by the Open House, ate some cookies, stayed a rather long time (45 minutes) AND ended up buying the HOUSE. It was one, if not the most hassle free transactions I've had all year - GO FIGURE
From the woman that didn't believe in Open Houses!
John, Well done my friend. I too am not a fan of open housing. I'm also not a fan of working after 5, working on Sundays, driving buyers around ever and taking over priced listings. BUT I feel everyone has to find out what works for them in their business and then do it. Well except for the over priced listings:) There are certainly areas where an open house may be beneficial. Real Estate is way to local to make blanket statements.
I've done one open house in my 14 years. I had one potential buyer show up. He contacted me almost 2 years later to buy a house! So it was a success for me but not for my sellers. I tell my sellers at time of listing that I don't do open houses and I don't run newspaper ads. If this is something they insist on then they have the option of not hiring me. If they say to me that so and so said they would do an open house then I say the same thing I always do when a seller starts talking about another agent:
"Everyone has their own way of handling their business. It may work for them but it doesn't work for me."
That's it. It would be unethical of me to say anything negative about the way another REALTOR(R) handles their business.
Good for you, Bryant! if only all of us could have the basic decency and humility to let other agents do what they feel they need to do, so long as it was no unethical, we wouldn't be having this discussion. :-)
Hey as I said to (I think) the same post - I bought my last 2 homes (prior to my career in Real Estate) from Open Houses. They DO work - sometimes. They may only work 10% of the time - but in a slower market we should be giving our sellers 100% exposure not 90%
John, as I stated on the original post in question, I advocate open houses in specific communities where they have actually proven successful. I do not find them worthwhile in every corner of my market, but no agent on the other side of the country can tell me what does and does not work in my area based on national statistics. Even by local statistics, the current absorption rate is pitifully low. And yet I have managed to sell all of my listings this year with the exception of one. The houses in the far reaches of the Valley that are languishing on the market may skew such stats, but have no bearing on my well priced properties in better locations. Each property, agent, list price, condition, neighborhood, etc is unique. There is no one size fits all method of marketing. Forcing all properties into the same marketing mold is foohardy at best, intellectually lazy at worst. I am struck by the words thou doth protest too much. Attacking a practice seems to be one way to counter the inability to fit it into a busy schedule.