Open Houses:

The first week I acquired my Real Estate License, I was invited to assist in an open house for a home that was just listed. The doors were open and about five interested parties toured the home. Nothing difficult about that.

What was a surprise was that one of the parties made an offer and purchased the home at the open house. I figured this business was easy - get a listing, have an open house, and collect my commission at closing. Interestingly, 15 years later I was still waiting for someone else to buy a home at an open house.

What really happens at open houses is the Seller thinks that is a way to sell a home and makes sure the Realtor complies. Some Realtors like them because their purpose is to acquire leads, not necessarily to sell the home. Now, if the house eventually sells because of the open house - wonderful.

The truth of the matter is that most people who come to open houses have no interest in them. They are just looking for something to do on a Sunday afternoon. Some of these people are neighbors who are curious to see what the seller did to their home to warrant the price.

For security reasons, every attendee is asked to provide their name and phone number for follow up. About 75% of the attendees provide bogus information. There are a select few who are generally interested in buying a home and these are the people the Realtor tries to work with. It is a good way to make introductions.

Simply put, Open Houses are strictly for exposure both for the Realtor and the prospective buyer.

Condos and Townhouses:

Condos and Townhouses are a different story when it comes to open houses. Most of these complexes, especially the upscale developments, do not allow for sale signs. Some even have restrictions on directional signs letting people know that an open house is in progress. The only way the public knows they are for sale is either through a Realtor or through an open house advertisement in the newspaper.

Broker's Open Houses:

Several years ago when the housing market was very slow, Realtors began having Broker's Open Houses. These homes were open only to Realtors, generally after their Tuesday office meetings and tours. The more elaborate hostings provided a snack or a refreshment of some sort to draw the Realtors into the home.

This type of Open House was particularly important if the seller had a home with an exceptional interior but had a poor or uninviting street appeal. The idea being that if the Realtor was impressed, they would show the home to prospective buyers. It worked very well.

Broker's Open Houses virtually disappeared in the 'hot' market that has been around the last several years. There were so few homes available that prospective buyers would look at almost anything, thus diminishing the importance of Broker's Open Houses.