Despite the popularity of the Internet and its ability to open the doors of listed homes to the viewer with multiple photos and stop action tours, nothing takes the place of the buyer being able to see the home in person. For that reason alone, the open house will continue to be one of the most effective marketing tools for agents, and a compelling reason to have a real estate agent involved in the transaction.

According to the conversion ratios as taught in the CRS classes by the Residential Sales Council, agents who hold open houses convert (sell) the home one in 10 times, making it still one of the most effective ways to initiate and close a transaction. This is much more effective that telemarketing (1:500,) door knocking (1:100,) classified ads (1:25,) and calls from signage (1:20.)

But open houses have other uses. Not only does it convey to your seller in a concrete way that you are actively working to sell the home, it gives an equally favorable impression to potential buyers and other agents who may attend.

Open houses are important business builders. If you don't have active referrals, you have to obtain new customers somehow. An open house perfectly demonstrates your services in action. Potential buyers meet you and immediately know whether or not they would enjoy working with you on your open listing or on another property. Some can even see ahead to the day when they sell their home, and they will remember you, your enthusiasm, and your hard work.

According to the National Association of REALTORS®' bi-annual survey, "The Home Buying and Selling Process: 1997," first-time home buyers accounted for 42 percent of the nation's housing market during the second half of 1997, one of the highest percentages on record.

Homebuyers across the board used a variety of methods to search for a home, with over 39 percent responding that they attended open houses. By comparison, 82 percent used real estate agents; 51 percent, newspaper ads; 38 percent, yard signs; 34 percent, home books or magazines; 24 percent, friends, neighbors or relatives; and 18 percent, on-line services and the Internet.

With held-open homes selling one out of ten times, and 39% of home buyers using open houses as a means to search for a home, the odds are definitely in favor of the agent who holds open houses as part of their overall marketing plan.

In an Agent News survey last year on whether agents should do away with open houses, one respondent wrote, "An agent should use all resources available to him/her in order to market the listing. One never knows where the buyer will come from for that particular property."

Another respondent said, "Open Houses are the cornerstone of the real human element of selling real estate in this computer age."

Published: August 31, 1998

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