Dear Mr. & Mrs. Home Seller, I would like to take a few minutes and tell you what I believe to be today's reality on holding an open house in order to sell your home. I realize you want me to do all that I can to sell your home. Please know that I will do that. But I think both of us want to be efficient in those efforts and holding an open house in today's market is like driving a big SUV - not efficient.
In the old days, meaning one year ago, buyers would go to church on Sunday morning, take in a leisurely brunch afterwards and then go drive around several subdivisions looking for open houses to tour in hopes of finding a home they liked and might consider for purchase. Some of these people would be serious buyers while others would just be tire kickers and still others were just looking for decorating ideas. In reality statistics show that fewer than 2% of home buyers find the home they purchase via open houses. That means you would have to vacate your home and I would have to sit in it for 50 consecutive weekends for me to sell your home using this method. I don't know about you but at some point during that 50 week span one of us might get a little frustrated with the other. What do you think?
What is today's reality? In consists of two phrases. The first of these phrases is fuel costs. With the national average for a gallon of gasoline above $4.00 I do not believe that a whole lot of people are leisurely driving around looking for homes to preview. When people are paying $80 for a fill-up the needless expense of an idling vehicle is not something that most of us can bear. The second phrase that has affected the effectiveness of open houses is the Internet. When one can now sit at home in air conditioned comfort and use the computer to preview homes rather than drive around wasting $4.00 per gallon fuel with three kids screaming in the back seat I think most people will do that. I don't know about you but I am not into self punishment and monetary wastefulness. It just does not make sense to me and I seriously doubt it does to you either.
So please Mr. and Mrs. Seller when I tell you that open houses are a waste of time and money today believe me. Let's think of the buyer and not ourselves when making these decisions. I realize that some of you may not like to hear this from me. However one of the things I promised you as your real estate agent was veracity. To give you the truth at all times even when I knew you might not like to hear what I had to say.
Thanks for listening.
Ron
Open Houses - today's reality
6 comments • Ron Wickes • June 09 2008 10:06AMComments
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I'm upfront with any listings I take and explain to them that open houses are primarily for the Agent to get more buyers, NOT to sell the house.
I really enjoyed the reality of this post and think it is written in a way that most sellers will easily understand the veracity.
Excellent post Ron! Gives me some great bullets for my gun when dealing with my sellers! Thanks!
A wise person told me for every listing marketing dollar you spend 70 cents should be directed at other agents, 20 cents at buyers directly, and 10 cents to keep your seller happy. So for a dime we can hold an open house
Great response to those sellers who insist on Open Houses!
Ron:
Thanks for your post. I'll add it to my list of reasons that Sellers should not want their home held open weekend after weekend. In addition to it not being efficient, we all know as agents that opening the home to anyone on the street is not only ineddicient but can also be downright dangerous. We've all heard the stories of people masquerading as buyers just to tour a home and leave with some valuables or prescription drugs.
We also know that open houses are an invitation to many unqualified buyers who just happened to be driving by and saw the signs- not to mention the nosy neighbors who just want to get a peek at the home.
I've always felt that open houses were a big waste of time for the Seller, but convincing them of that fact is a tough one. Sellers have been brainwashed by this form of marketing over the years and they just don't get it yet.