Should Investors Hold an Open House to Sell?

In 2202, a survey by the Real Estate Center at Texas A & M University found that private open houses for other agents were more effective than public open houses. The agents surveyed thought public open houses troublesome, dangerous, and generally ineffective except for agents who needed to build a client base. The survey said "Although open houses are popular with sellers, they appear to be losing their appeal among agents. Sellers see the open house as an indication the agent is actively promoting the listing. Agents know, however, the odds are long that an open house will produce a buyer."

A more recent survey conducted by The National Association of Realtors in 2005 found that open houses led to only 7 percent of all home sales. In their profile of Home Buyers and Sellers, the NAR, reported that 42% of home buyers found open houses to be "Very Useful" as an information source. In fact, 55 percent of home buyers do look at open houses to gather information. However, of the nine categories listed where buyers first learned about the home they purchased, open houses was not even mentioned.

Findings include:
Most people attending open houses are not serious buyers.
Most open houses are held merely to appease sellers.
Three out of four agents think open houses are effective in interesting buyers in homes other that than the one being shown.
Agents also pick up new listings at open houses.
Not many homes actually get sold because of an open house.
Visitors include a lot of looky-lou's and unqualified buyers.
Sometimes, thieves look for easy targets by visiting open houses.

Should investors stage an open house?

If open houses lead to 7 percent of all home sales, you might consider a open house. We like to have an open house when we finish remodeling a fixer and invite all the neighbors. Often, neighbors know a friend or family member looking for a house.

We make the open house an event and tell the neighbors to bring anyone looking for a new home. We stage the house with extra flowers and essential oil scents, play music, serve refreshments, and have our loan officer ready to answer financing questions.

To do this effectively, you need help. Our adult children actively pick up after people and run a Swiffer around the floors. Asking home shoppers to put on hospital booties helps keep the floors clean. Plus, people like the idea that we're picky about keeping the house immaculate.

Even with all this work, the best outcome for us is meeting the neighbors in our target area and finding people who want to SELL their homes.

Fixing and Flipping Houses

Copyright © 2006 Jeanette Joy Fisher