from Scripps Howard News Service Home sellers still favor open houses, but many real estate agents say they are a waste of time compared with other marketing methods, according to a new survey.
Agents surveyed by the Real Estate Center at Texas A&M University said private open houses for other agents are more effective than public open houses, which many thought were troublesome, dangerous and generally ineffective.
"Whether or not to hold an open house is a concern among agents," says Jack Harris, research economist with the Real Estate Center. "Agents must be on site for the duration of open houses, which are usually held on weekends, and be prepared to impress potential buyers. Safety is a growing concern because there is no way to know whether a visitor is a serious buyer, just curious or has more sinister motives."
Today's marketing tools include the Internet, cable television and low-tech innovations, such as yard signs that transmit radio messages.
The survey, which sampled residential agents in Texas, shows that almost all (97 percent) respondents have used public open houses, but only 41 percent say the technique helps sell the home. While 32 percent agree that public open houses attract many potential buyers, 62 percent believe most people attending open houses are not serious buyers. A slight majority (59 percent), however, say open houses are especially important for selling unusual homes.
Nearly three-fourths of sales agents think that open houses are effective in interesting buyers in homes other than the one being shown. Slightly more than half (55 percent) believe open houses help generate new listing contracts. These numbers suggest that open houses may not be a waste of the agent's time, although they may not benefit the seller.
"Agent open houses are more effective," says Harris. "Agent open houses are held when the listing agent invites other agents to view the home when first placed on the market, hoping one or more agents will have a buyer interested in the home. The vast majority (99 percent) of respondents use this process, and 59 percent of them view it as effective in selling homes."
An even larger majority (65 percent) agreed that agent open houses are more effective than public ones. Only 43 percent believe that holding an agent open house is essential to the sale of unusual home styles.
Holding open houses is not the only way agents can attract listings. Survey respondents view referral and community involvement as effective tools, which rank first and second in effectiveness and popularity. Open houses rank third in familiarity but seventh in effectiveness.
One of the keys to selling a listing, especially in highly competitive markets, is for serious buyers to see the home. Yard signs, the Multiple Listing Service (MLS) and referrals are common methods that stand out. Although these methods are not new, agents still feel they are the most effective.
