 |
|
|
|
Photograph by Paul Myers
John Gray (left) of Property Inspection Service, reviews the house being sold by Suzanne Horrigan (center) of Coldwell Banker to Rita and Brian Etscheid (at right). The couple placed a bid on the house after visiting an open house that Horrigan had at the house.
Realtors differ on the value of open houses
By Jean Newton
While open houses seem to be one of the standard marketing tools in the real estate industry, Realtors have mixed opinions about whether open houses sell homes. Although there are some very direct benefits to holding open houses, there are definitely some drawbacks.
On the positive side Realtor Suzanne Horrigan of Coldwell Banker in Cupertino thinks open houses can be well worth the time and effort involved. A recent open house resulted in a successful sale that required more than a little commitment on her part. Horrigan promised to hold an open house for her sellers who were out of state purchasing a home, but couldn't find assistance on the scheduled day. At the last minute, she jumped in her car to drive several hundred miles back to the Bay Area in the middle of her vacation to make it to the house just in time for the opening.
"It was an exhausting day, with 30 or so couples and two real estate agents with very interested clients," Horrigan said. "When a couple of first-time buyers with lots of questions came in, I knew the day I had taken from my vacation would turn into an overnighter. My plans quickly changed when they asked if I could tell them how they could buy this house.
"The clients returned at the close of my business day and we made the dream come true. I gave the other two agents a call to see if their buyers could move that quickly. 'No' was the answer. With the assistance of the fax machine, the sellers accepted the offer. Since the buyers had been prequalified, they were quickly loan approved pending appraisal," Horrigan said.
Although she considers the open house a somewhat old-fashioned tool, Horrigan knows from experience it can be a very successful means of closing the deal. Open houses can also serve as a way for Realtors to meet prospective clients.
"I like open houses because they give me a one-on-one, face-to-face way to meet the client and see if there is a way I can help them and see if there is a good mix of personalities," said Dante Drummond of Coldwell Banker in Palo Alto. "It is also a great way to hear from the neighbors about what is happening in the neighborhood."
Drummond also likes to hold open houses for her sellers when she is particularly driven to sell a house. She believes preparation is the key so that she can give buyers information and selling points their agents do not know.
"It is particularly important to have reports and disclosures at the property so you can address items that may be of concern to buyers. As the listing agent, you are more familiar with the house history and all the reports and findings than the buyer's agent," Drummond said.
For Realtor Margot Lockwood of Coldwell Banker in Woodside, there is more than one reason to hold open houses. "Open houses often sell the house. I have had clients go to areas they said would not interest them and buy there. I think open houses are as valuable in selling the house as they are to agents in picking up new clients," said Lockwood.
As a Realtor/broker for more than 20 years, Juliet Lundy, broker/owner of Lundy Properties in Palo Alto, has some clear and realistic observations about open houses. While she believes they are a wonderful public service and a way to educate prospective buyers about neighborhoods, prices and condition of houses, she also believes there are some risks involved for both the property owners and the Realtors.
"To have your home with its contents totally open and exposed to the public is an extreme risk, since there is no discrimination as to whom may be allowed to explore your home. When there are more than a couple of lookers in the home, even a responsible Realtor cannot possibly keep a watchful eye on everybody who is wandering around your house and opening your closets."
Lundy said police departments across the country have reported prescription drugs being stolen from medicine cabinets in bathrooms during open houses on weekends. She also thinks safety for Realtors is an issue, especially in vacant homes where Realtors are alone.
There is a tendency for sellers to believe that marketing their home through open houses is a service that listing agents should provide, but whether open houses sell property is debatable, and Lundy thinks it happens only rarely. Lundy cites highly educated and more sophisticated property sellers as those who typically do not wish to have their homes held open. In high-priced areas, the trend is to vacate the property and have the house staged properly for marketing. However, she points out that the majority of home owners in an average price market cannot afford to move out of their home until they have sold it.
"Open houses can be very beneficial for buyers who wish to browse through homes for any length of time before they settle to work with any Realtors exclusively. Many say they feel much less pressured to check out the market personally and privately without their Realtor's presence. Most buyers have looked on their own for several months before they contact any Realtors to work with. However, relying too much on their own research to find the dream home is not fair to themselves," Lundy said.
Many top quality, best-priced homes are sold within a couple of days without ever being held open or having a for "sale sign" on the front lawn, said Lundy. "Realtors faithfully watch the multiple listing services activities in search of the perfect home for their buyers and don't rely on open houses at all. Clients who risk not having a Realtor to guide them are at a great danger, because a buyer can lose a chance for seeing the best bargains, which the listing agents know will sell quickly, without benefits of any open houses or advertisements," she said.
Realtors are definitely mixed on their opinion of the value of open houses. Former Silicon Valley Association of Realtors President Jeff Barnett of Alain Pinel Realtors in Los Gatos, said, "It really depends on the location, condition and price of the home and the judgment of the Realtor, as to the benefits of holding an open house for a particular client."
|
|
|
|
Saratoga, California Since 1955
