One technique that real estate agents employ to find more home buyers is to hold an "Open House" at a property that they currently have listed for sale. Studies have shown that there is no more than a 1% chance of selling the featured house. So, you might question why agents bother with conducting these events.
A National Association of Realtors study showed that 44% of people who talk to a real estate agent to discuss selling or purchasing of a home will actually end up buying or selling in the next year. Consequently if a real estate agent gets 100 people to visit open houses in a year, they will be talking with about 44 buyers or sellers. The advantages of these events are that they generate leads, produce referrals and keep the agent or the real estate broker's name actively engaged in the market. They really are of little value to the home seller.
So, assuming that it is known that there is a less than 1% chance of selling the featured property, why is it that so many folks attend open houses? The fact is that a large number of people want what they cannot have. They shop in stores for high-end products, then buy something that they can actually afford. The same goes for most home buyers. They are attracted to homes that are more expensive than they can reasonably afford. A Realtor who is able to talk to them during an open house event can expect that they will ultimately buy a home priced 20-30% below the value of the featured home.
Here are a few tidbits of information that you may not know. There is a lot of work performed getting ready for an open house that happens behind the scenes. While the standard house is open for three to four hours, a true real estate pro will work hard both before and after the event. Some of the things a Realtor does include:
Preparing advertisements to announce the opening Targeted mailings and phone calls during weekdays inviting prospects to attend Flyer creation and circulation to other real estate agents Knocking on doors in the local area to spread the word Cleaning and staging the home before the event Placing directional signs in order to maximize traffic Preparing snacks and drinks for visitors (sometimes) Cleaning up after the event
So, when you are out for a drive and decide to view an open house, you'll know more about the ins-and-outs of an open house. The real estate pro has most likely prepared all week for the event. Don't hesitate to ask her questions about the house, the community, and similar homes for sale that you may be interested in. Who knows, maybe you will be part of the 44% of open house visitors who purchase a home this year!
Jim Navary has been a freelance writer and researcher for over thirty years covering a broad range of subjects. He is also a licensed real estate agent in the Commonwealth of Virginia featuring Fort Lee VA real estate and Colonial Heights VA homes for sale.
