How effective are open houses?

As a first time buyer in the city looking for a two bedroom/bathroom unit, i would say they are priceless. We went to over 75 open houses and really got to understand the market and the neighborhoods/buildings that way. we made three different offers on apartments and all were found by ourselves at open houses and the one we wound up purchasing we went to twice during open houses. Trying to see apartments in the city is so tedious without this venue as you have to contact your broker who then calls their broker who then calls the sellers and then you go thru the same routine with callbacks till you find a suitable time. As to how often they should take place...I would say at least twice a month. It may be an inconvenience to the sellers but I feel it really widens your audience.

Thanks Rosina, good points from a buyer.....

The question seems silly to me. Open houses are critical in most sales. Not the ultra-high end stuff of the $5MM+ type, but for average sales, you absolutely need OHs. People hate scheduling appointments. Many don't like feeling watched while looking at a place the first time. Volume-viewing is key to homing in on what you want and OHs help that, too. When my b/f and I sold each of our places a couple of years ago, our broker agreement required that the apartments be shown every week at OHs until they sold or unless we agreed to not have one on a given week. We ended up skipping a holiday that would have been dead anyway, but both went to contract within 7 weeks and sold to people who first saw the units during OHs. We also bid on an apt we saw first with an OH and ultimately bought another one we found and saw first at an OH.

I gather from discussions over the past years that my feelings on this are shared by the buyers and sellers I know. I don't know if brokers like the idea of "every weekend" but my selling and buying wasn't done to make brokers happy. It may be inconvenient, but it works.

Another bonus of OHs: you minimize contact with brokers. I found the worst part of the buying process having to speak to agents. I detested the prattle and found most to be idiots. There are exceptions, but a lot of shaff to sift before you get some wheat. The idea of making appointments to see a place and having to deal with phone/email tag with a broker to see a place was an enormous turnoff. Dealing with the broker trying to show you other places too, angling for your contact info and personal info...I hated it. If I had to schedule 70 appointments with brokers I would have given up. At open houses you often sign in and don't have to say a word to anyone.

I heartily agree--open houses are a must. As a buyer, I vastly prefer to be able to see apartments at my own pace without feeling pressured by a broker breathing down my neck. It's much easier to schedule a full Sunday of hoofing around than trying to herd cats making individual appointments with individual brokers.

Also, with an OH you (the seller) have the added benefit of overflow traffic from other similar properties open housing on the same day--folks who may not have considered your place when looking online happen to wander in and fall in love. It happens, trust me--I know from experience:-).

As a buyer, can't add much to what's been already conveyed.
Maybe some open house tips; Vary the time. one sunday 1 to 2:30, another sunday 3 to 4:30.
One hour is not enough, especially in the city when people are trying to see 4 or 5 homes that day and trying to create an itinerary. At least once in a two/three week period, try and get a midweek early evening showing as well.

Open Houses are for prospective buyers to educate themselves on the market, and for listing brokers to capture new customers. I know that you're not going to hear that as much on this board, because people come to streeteasy because they are DIY-ers, but IME, the vast majority of buyers make appointments.

ali r.
DG Neary Realty

Thanks Ali for your last comment, and coming from a "seasoned broker" I am sure you have much experience behind you to dictate whether or not most of your sales come from open houses............

It would seem to me that it's good for the buyer (a no pressure sale, they don't have to take time off work, can see more than one property in one day, etc.), but it ultimately may not make but a marginal effect on what sells.

I am curious to hear from more brokers like Ali R. to hear their opinion, she was the first to speak her truth here even though it was not the "popular" reaction.

I am asking these questions for particular reasons, as listing brokers aren't always anxious to tell their client "let do an open house this weekend", and "let's keep doing them"........ it seems to be fueled more by the seller to the broker......

damier
Why is her truth the only truth? Over the last year and a half Ive been to around 100 listings. 80% of the one's Ive seen were open houses. Of the eight offers I made, 7 of them were open houses. Now some I made appointments after the open house for a second time and a chat.
The one I am in contract now on was an open house.

Bottom line is no open house gives your apartment 10% of the exposure it should have. Do what you feel is right......its your aprtment to sell.

i found two of my purchases at open houses. i sold one of mine from the first open house held by my broker.

god forbid buyers should educate themselves on their own, and have a way in which to do so. brokers love to spend the time, after all, taking them around while they learn what they like and don't like.

damier, all i can say is that when i look at open houses i note that almost without fail all of the brokers i respect the most have open houses almost every weekend, multiple slots.

Open houses in this city would be more effective if they were truly open houses (meaning the house is "open" all day), rather than the 60-minute jokes we currently have.

I looked at a condo with a broker, then went back during an open house.

Bought the place.

Two days after contracts were signed by both sides the owner received an offer for $20K more from one of the open house viewers.

Had to hold the seller's feet to the fire to push the contracts through.

as effective as first dates

Wow, a variety of opinions, but the general consensus says that they are a good thing to do.....and that is what I will do as even though I didn't get a buyer, I usually had 8-10 lookers every week that could be potential buyers.

I totally agree with NYCMATT, the one hour to one & 1/2 hour time slot seems rather restrictive. I think they should be at least four hours, but I don't know any broker that may want to tie up 1/2 their day that way. They must have gotten shorter thru the years due to some reason or another.......

PS.- I didn't say Ali R.'s "truth" was the only truth, that is just her opinion and is one from a respected broker. I have mainly heard from buyers hear, it would be helpful to hear what other expereinced brokers have to say on the matter of "open house"...worthwhile, somewhat worthwhile, or a waste of time.....

apologies, i misread this
> she was the first to speak her truth here even though it was not the "popular" reaction.

Don't get me wrong; as an agent, I like holding open houses. They're a nice way to meet new clients, and they're a nice way to perfect your "pitch" through rehearsal.

And it's not that we never sell off open houses -- I believe my colleague Michael Walsh just took a Perry Street property into contract off its first open house.

I'm just not convinced that that's the way the majority of NYC real estate transactions happen.

ali r.
DG Neary Realty

Falco's analogy is perfect!

A useful supplement to public open houses is the "Brokers Only" open house. Usually held at lunchtime on weekdays, these events give brokers a chance to preview properties so their clients don't waste time on ill-suited listings. Brokers are generally permitted to bring clients, though it's always a good idea to ask.