Sunday, August 05, 2007

Do open houses work?


Looking back over the years, I wondered if all the open houses I hosted had actually produced a transaction. The answer is yes. Many years ago, I hosted a 1 bedroom, 1 bath condo in Sherman Oaks. This condo was located on Riverside Drive near Trader Joe’s and the Fashion Square mall. This Sherman Oaks condo was in an excellent location.

During that time, most Sherman Oaks properties were selling within weeks if not days. I’m sure several hundred people stopped by the property over the course of the first month. During this time, I did run into a gentleman who several years later did purchase a condo from me in an excellent location in Sherman Oaks.

I can say open houses do work for the agents benefit, but how well do they work for the actual seller. I mean, what percentage of homes actually sell because an agent held an open house and the buyer walked in and bought it.

Craig Procter, a well known Real estate agent and trainer in Canada, suggest that there is a 1% chance the home will sell because of an open house. Another words, there is a 99% chance the open house will fail to produce a buyer.

So why do agents continue to host open houses knowing that it won’t produce a buyer? There are two reasons why open houses still exist. The first, sellers still think open houses work – even though agents know better. The second, the agents get to meet buyers who are interested to purchase a home in the near future.

If your thinking of selling your home, instead of hoping to sell your home during an open house ( I know you have better things to do on your weekend), make your home more accessible by having the agent place a lockbox so other agents can get in and out without having to make appointments. Plus, it’s important choosing an agent who not only is responsive (calling back & answering the phone) to your needs, but also is available to quickly return other agents calls and requests.

Written by: Richard M. Johnston, RE/MAX
I specialize in Sherman Oaks and surrounding areas including: Studio City, Toluca Lake, Burbank, Van Nuys, Valley Glen, Valley Village, Encino, Tarzana.

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