Of the 344 readers who responded to an AgentNews poll that posed the question, "Should agents do away with open houses?," 205 -- 60 percent -- gave a resounding yes. That sentiment is ironic considering that until recently, open houses have long been considered one of Realtors' most effective means of promoting listings. A recent poll by the National Association of Realtors, however, signaled the growing sentiment that open houses are losing popularity.

The 1995 poll revealed that less than 7 percent of home sales are generated by open houses. The largest number of sales -- 29 percent -- comes from referrals, through past clients and friends. AgentNews originally reported the results of the NAR poll in a story featured Nov. 19 ("Closing the Door on Open Houses? New Technologies and Safety Issues Toll Death Knell for Open Houses"). According to that same poll, 41 percent of homebuyers stated that they attended open houses before buying a property, but less than 5 percent purchased a home through an open house.

As we move into the 21st century, Realtors -- like it or not -- will become more competitive by using such technologies as well-designed Web sites, digital cameras, and virtual home tours. Not only are these methods intriguing to potential buyers and sellers, but a Web site also serves as a tool to weed out the "just-looking" visitors, who comprise a large percentage of open house turn-outs -- much to the disappointment of agents.

Respondents who voted against open houses in the AgentNews poll made their decision based on two primary factors: safety and time-efficiency. Not only did they worry about the inherent vulnerability of sitting in an unlocked, empty house; they also questioned the effectiveness of a marketing strategy which, in the end, yielded them very few sales and consumed large portions of their time -- which could be spent using more effective methods to sell properties.

One respondent who thought agents should do away with open houses added: "Open houses raise false expectations for sellers and use too much of an agent's valuable time. There is also an element of danger, of course, when a lone agent can be accosted by anyone with ill intent who might drive by the site. The availability of images on the MLS and Internet makes open houses less than necessary in today's marketplace."

Jean Brenner, too, voiced her opinion against open houses: "Not only has the practice of holding open houses placed the 'sitting Realtor' in the vulnerable 'sitting duck' position, but also, the time spent at the open house for three or four hours could be better spent on other activities. Motivated buyers generally are too busy to pop in and out of open houses. People looking for decorating ideas do that. Motivated buyers want their agents to narrow down possible home matches and plan a shopping session. Open houses also 'muddy up' the agency matter. Can the agent represent the walk-in if he/she is representing the home seller? What about the many Realtors who send their buyers to the open house with only a business card and no pre-registration courtesies? The reason may be legitimate, but the result is often adversarial, especially if the buyer wants to buy that property. But foremost, drop-in prospects to open houses mostly are totally unqualified and may be there for purposes other than purchase."

"I'd like to see open houses banned," a New Jersey Realtor said. "They usually attract buyers who already are working with an agent. Most people come from signs, and the open house they attend is not in their price range, so the chances of selling a home at an open are slim to none -- not to mention putting yourself at risk by sitting in an unoccupied house for four hours and advertising that you are doing so!"

On the "no" side, respondents who thought open houses should remain on agents' agendas defended their positions from the standpoint of maintaining the human element in the real estate business. And many of them contended that open houses were just one more strategy in a long list of marketing efforts that every agent should practice in order to stay competitive. Regardless or whether a sale ultimately took place, they said, getting one's name out is always an effective marketing tool -- which could prove its worthiness months down the road when a buyer is finally ready to take the plunge and remembers the Realtor he met at an open house months before.

"An agent should use all resources available to him/her in order to market the listing," one respondent said. "One never knows where the buyer will come from for that particular property." Another respondent, exasperated with our current emphasis on technology, said, "Open Houses are the cornerstone of the real human element of selling real estate in this computer age."

One "no" vote came with a few conditions: "A prospect may not enter a seller's home without proper identification. We must know who is in a seller's home -- not only for follow-up but for safety reasons. (2) Shorten from three or four hours down to one hour. There is no good reason that a home is open for the period of time that it is. Truly motivated buyers will select the property that they want to see the most and make time to see it. It would also eliminate 'browsers' and 'time-wasters' who suck up an agent's time."

While open houses may be losing ground, one agent summed up the future of this marketing strategy, at least for the foreseeable future: "Do I enjoy open houses? No. Will they go away? Not likely. As long as the open house is important to even a limited number of sellers, they will be offered by some agents. And as long as some agents offer open houses, they will hold an edge when dealing with sellers wanting opens."

Published: February 9, 1998

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