Open House Confidential

If agents were totally honest, they would admit that only 6% of the buyers of a particular home come from attending an Open House at that property. In fact, if sworn to the whole truth and nothing but the truth, Open Houses are actually a better source for buyer leads for the Realtor holding the Open House!

Then why should a seller agree to an Open House at all? Isn't it just a waste of time (except maybe for the agent?).

I would have to respond with "No they are NOT a waste of time for the seller. Not by a LONG shot!" "Why", you might ask?

Even though only 6% of Open House attendees buy the house that they see during an Open House, there are numerous reasons why a seller will want to have his agent hold Open Houses in his behalf.

A good agent will notify the neighbors about the upcoming Open House. Yes, that means that there will be a lot of 'nosey' neighbors who just want to see what the inside of your house looks like. Yes, that also means that most, if not all, of these 'prospects' are not prospects at all. If they already live in the neighborhood, then it is unlikely that they will be buying another house in the same neighborhood - although I have had this happen in especially desirable neighborhoods.

Then why notify the neighbors? Because in some cases, the neighbors know someone that is interested in moving into the neighborhood. Often friends, family or co-workers will say to a neighbor, when visiting, "Let me know if a house ever comes up for sale here. I love this neighborhood."

I have had it happen more than once that a neighbor has told someone that one of my listings was for sale, or that I was holding an Open House and maybe they would like to come and see it.

At an Open House in Grandview Heights, I had 18 couples come through one Sunday. Many of them were neighbors. Many of them were 'tire kickers'. Some of them even admitted to going to Open Houses just to get decorating ideas. BUT, one couple's daughter had told them about the Open House. They wanted to live near their newly born grandaughter, so they came and got very interested. For a number of reasons, they didn't get the house, but the point is, neighbors are often good sources for leads for the sale of your home.

For those other potential buyers (after I eliminated the tire kickers and the decorators) I was able to refer to other houses of similar style or in a similar area. I sold two houses as a direct result of these types of leads.

Again the seller might say "So how does that help me???!!!"

Because it works the other way around, too. Buyers who attend other Open Houses then get referred to YOUR home as a home that is in a similar neighborhood or from a similar property that, for whatever reason, they are not interested in buying. Some agents actually send potential buyers from an Open House they are holding to another Open House they think might be of interest.

So the inside information is that, yes, Open Houses are good for Realtors, but they are also good for sellers and buyers as well.