Your thoughts on open homes...

[thepeoplesagent]

Just wanted to get some feedback from buyers regarding open homes.
As an agent you may be surprised to know that I don’t like them; there are many reasons but I won’t go into them now. Of late, my arm has been twisted to conduct a couple of open homes on the weekends.

My question is:

1. As a buyer, do you prefer open homes rather than making an appointment?
2.Would you not view a property because it has no open house?

Any other feedback regarding your thoughts on open homes would be appreciated.

 

[alexlee]

1. As a buyer, do you prefer open homes rather than making an appointment?

Yes, because I'm free to go or not go, and can look at multiple properties in one morning.

2.Would you not view a property because it has no open house?

Not necessarily, but it would have to be specifically appealing for me to call and make an appointment. i.e. by not holding opens you risk losing the buyers who might just come to 'take a look' and end up liking the place.

The agent works for the seller, and the more people who see the property, the better.

 

[wylie]

1. As a buyer, do you prefer open homes rather than making an appointment?

Absolutely HATE having to make an appointment. I liken it to browsing in an upmarket boutique, having the sales person hovering over you, trying to work out what you want, how much money you have to spend etc (which is why I NEVER go into those stores). I like to have time to myself to see the house without an agent hovering.

And yes, you get lots of sticky beaks and tyre kickers at open houses, but you have to take the good with the bad.

2.Would you not view a property because it has no open house?

The last house my parents bought was only brought about because I dragged Mum to the open house. She fell in love with it and they bought it.

I've been to auctions for a sticky beak and ended up buying. Mum and I took the dog and my kids and their cousins to an auction and we bought the house. I don't think we are extreme examples.

I think the chance of catching a buyer who might otherwise not bother to call the agent, book a time to go through and feel they are under scrutiny, is worth holding an open house for.

For those who say if they cannot be bothered to make an appointment, they are not going to buy... I say I'm the proof that it does happen.

 

[ozsupra]

1. Love open houses, not keen on making appointments.

2. No I wouldn't, however less likely to buy. Hidden gems are often only discovered by open houses and not by the description in the ad.

 

[Robstar]

1) Yes definately prefer opens as (as mentioned) you can work out your Saturday itinerary...
2) I would have probably moved on by the time of the appointment

 

[The Y-man]

Prefer to go to opens to gauge interest levels.
Having said that, need arranged ones as well if I can't get to 2 open's at once.

The Y-man

 

[westminster]

As a seller I want home opens, as a buyer I prefer them too.
And if I had to twist your arm to do a home open for me I probably wouldn't be using you.

 

[Ace in the Hole]

My question is:

1. As a buyer, do you prefer open homes rather than making an appointment?
2.Would you not view a property because it has no open house?

Any other feedback regarding your thoughts on open homes would be appreciated.

1. We recently purchased a 3 mil PPOR after a couple of quick inspections, it was an open house. We only looked at a few others before comitting, all were open homes.
Couldn't really be bothered making an appointment to view a home, I like convenience.
2. The answer above answers this question.

 

[Jen_PFR]

Some background to my answer: we are a couple in our mid-30s who, since 2005, have bought nine properties - one to live in, the rest as investments.

1. Love home opens. So convenient. I am also put off by making an appointment, part of the interesting thing of home opens is seeing how much interest the property is generating. This is useful for the bargaining process. Plus I don't appreciate the one on one attention that you get at appointments. We like to have a look around and come to our own conclusions, without an agent in our ear, trailing us around the property.

2. If we need to make an appt to view a property, we automatically assume that the vendor isn't really desperate to sell, so we don't bother, as we assume we are therefore unlikely to be able to negotiate on the price. As we manage our investments ourselves as well as hold down full time jobs, our time is precious, and there is no point trying to bargain with somebody who won't bargain back.

 

[Bigtone]

li like open homes so i don't need to talk to the agent before, during or after the inspection unless i want to

i have bought many places i wouldn't have if i had to make a booking to see it

 

[Ed Barton]

As an agent you may be surprised to know that I don’t like them;

Any other feedback regarding your thoughts on open homes would be appreciated.

Are you mad?

I've been to opens, that I had no intention of buying to fill in time between my more serious places, only to purchase the place I had written off and had no intention of visiting.

About a year ago I looked at an OFI of a neighbour, just as a nosey neighbour, I almost bought it.

1. As a buyer, do you prefer open homes rather than making an appointment?

90% of the places I look at don't require more than 3 mins for me to decided that they are not suitable. I don't want to have to call and make an appointment and talk some bs with an agent to look at a place that will have a 90% chance of failure, we're wasting each others times.

I prefer open homes.

2.Would you not view a property because it has no open house?

see above.

'this place looks the go' - I would make an appointment without hesitation (and I would be thinking less competition).
'this place looks ok' - I'd fit you in around the other OFI's; you might get me to view it.
'this place is questionable' - no inspection without a open.

Lastly, and most important for an agent, I have mental list of agents I would/would not sell by their behaviour at opens

 

[thepeoplesagent]

Thank you for all your comments, Kudos to all… Although many of you are in different states and markets I will continue to conduct my open homes.

As a seller I want home opens, as a buyer I prefer them too.
And if I had to twist your arm to do a home open for me I probably wouldn't be using you.

Now, after that comment I will have to tell my reasons why I am not a big fan. And the arm twisting was not from a vendor, it was from my boss. Actually, the large majority of Vendors I speak to don’t like open homes.

Firstly, I work in the Western Suburbs of N.S.W. The homes in our area are typically a “dime-a-dozen”. In other words, if a buyer misses out on my listing, they can buy something else very similar down the road or a few blocks over. Due to this, it’s rare we have buyers fighting over properties for sale.

There are exceptions, sometimes I may get a unique property but at the basic core, we are selling properties between $350,000 - $450,000.

In 9 years I have never had a buyer ring regarding a property and say “I’m not viewing if there is no open home”. I have never had a buyer turn up at an open home which I didn’t know was turning up and buy it. Though I have sold OTHER properties to these types of buyers. I also get to meet a lot of prospective sellers at open homes. Wow, this seems great! Well for the agent anyway….

Here are my concerns and opinions regarding open homes:

Open homes are for the benefit of the Agent. It gives them a chance to put on a ‘show’. Where many people view the property but not many are able to buy. Agent then says “Mr & Mrs Vendor, we had 12 people through the open home and no one has made an offer, we need to drop the price”.

A stated before, the agent gains potential contacts who are thinking of selling (how would you feel knowing your home is being used to source other vendors).

A medium size home appears small the more people you have through at the same time. People are crab-walking down the hallways to get past each other etc.

Some buyers can’t make the time and feel they are inconveniencing the agent if they ask to see the property via appointment (buyers have told me this).

As an agent, it is very hard for me to get feedback from buyers at a busy open home. Not everyone signs the book or leaves real information. Some buyers walk in and out before I get a chance to speak to them.
Quite frankly, if a buyer wants to view a home, I tell them they can view it anytime- 7 days a week.

I have been conducting 5 open homes each Saturday for the past month. None of these properties have received offers from the open home attendees. All buyers go into my database and are contacted when a new listing in their criteria comes on the market. To date, most buyers are:

• Looking for someone else
• Need to sell
• Have “just been keeping an eye out” and been looking for 1 year
• Live down the street and want to compare it to their home
• Looking for a bargain
• Rush through the home because they are running late for another open home
• In the information seeking stage, are yet to speak to bank about finance

So, although the open homes are getting lots of activity, it is not productive activity for my vendor. Sorry for the long post (I could have wrote a lot more believe it or not).

 

[travelbug]

In 9 years I have never had a buyer ring regarding a property and say “I’m not viewing if there is no open home”. I have never had a buyer turn up at an open home which I didn’t know was turning up and buy it.

That's because they wouldn't bother ringing AT ALL. It's like I was taught in my managemernt training. For every complaint you get assume there are 10 more that couldn't be bothered ringing up.

Open homes are for the benefit of the Agent. It gives them a chance to put on a ‘show’. Where many people view the property but not many are able to buy. Agent then says “Mr & Mrs Vendor, we had 12 people through the open home and no one has made an offer, we need to drop the price”.

A stated before, the agent gains potential contacts who are thinking of selling (how would you feel knowing your home is being used to source other vendors).

I believe it adds a sense of urgency to the sale. Competition is a good thing. One at the end of my street 2 weeks ago had 50 groups through. Sold on the day of the open at $60K over asking (offers over $695).

I don't care that people are looking at my house who are selling. Actually I do this myself. I have been looking for the past 2 months at my competition. My house has an open home tomorrow. I have a good knowledge of the market, what buyers want and the price my home is worth.
Local knowledge has worked in my favour. I know that prices have risen in the last 3 months and my price has been revised because of this. Thank you open homes.

A medium size home appears small the more people you have through at the same time. People are crab-walking down the hallways to get past each other etc.

Some buyers can’t make the time and feel they are inconveniencing the agent if they ask to see the property via appointment (buyers have told me this).

As an agent, it is very hard for me to get feedback from buyers at a busy open home. Not everyone signs the book or leaves real information. Some buyers walk in and out before I get a chance to speak to them.
Quite frankly, if a buyer wants to view a home, I tell them they can view it anytime- 7 days a week.

I have been conducting 5 open homes each Saturday for the past month. None of these properties have received offers from the open home attendees. All buyers go into my database and are contacted when a new listing in their criteria comes on the market. To date, most buyers are:

• Looking for someone else
• Need to sell
• Have “just been keeping an eye out” and been looking for 1 year
• Live down the street and want to compare it to their home
• Looking for a bargain
• Rush through the home because they are running late for another open home
• In the information seeking stage, are yet to speak to bank about finance

So, although the open homes are getting lots of activity, it is not productive activity for my vendor. Sorry for the long post (I could have wrote a lot more believe it or not).

All valid points.
I still prefer open homes. Less inconvenience for sellers too as you have the open and maybe a few private views, instead of everyday.

 

[mumbai]

I have bought two properties in western Sydney recently. While looking for my PPOR, I made a list of inspections (open homes and appointments).
I always felt the urgency to reach the open homes and view it and take care of the appointments later.
Also, there was a mental advantage in open homes for a vendor when lots of prospective buyers feel the competition and each of them wants to put an offer asap.
With the appointments, I have been to, I never felt the urgency to decide.

I did end up buying my PPOR on the first open home within an hour of it finishing.

 

[thepeoplesagent]

That's because they wouldn't bother ringing AT ALL. It's like I was taught in my managemernt training. For every complaint you get assume there are 10 more that couldn't be bothered ringing up.

I believe it adds a sense of urgency to the sale. Competition is a good thing. One at the end of my street 2 weeks ago had 50 groups through. Sold on the day of the open at $60K over asking (offers over $695).

Your first point is good. I was actually thinking that. But there is a stubborn part of me believes that a serious buyer would take the time to make a phone call. I know there are exceptions though…

Your second point is not really in my category. As I said in my previous post, if a buyer misses out on a property, they can buy one similar down the road. Regardless, the house was probably worth $755,000 in the first place. Getting fifty people through sounds like the works of bait advertising to me.

 

[sanj]

2. If we need to make an appt to view a property, we automatically assume that the vendor isn't really desperate to sell, so we don't bother, as we assume we are therefore unlikely to be able to negotiate on the price. As we manage our investments ourselves as well as hold down full time jobs, our time is precious, and there is no point trying to bargain with somebody who won't bargain back.

This is often the case i guess but the last few ive bought have been on the market a long time (the last one was on and off for close to 4 years) and so if the property is stale and has sat there for ages you will find it is often by appointment only. I dont really think a lack of home opens is an indication that the vendor is not willing to be reasonable or to negotiate.

 

[Ed Barton]

Thank you for all your comments, Kudos to all… Although many of you are in different states and markets I will continue to conduct my open homes.

I thought you thought they were worthless? Why continue doing them?

Every post in this thread says they are a good idea.

the large majority of Vendors I speak to don’t like open homes.

No one likes heaps of people walking around their house. That doesn't mean it's a bad sales technique.

In 9 years I have never had a buyer ring regarding a property and say “I’m not viewing if there is no open home”.

Every Saturday morning I get the paper and call the advertisers...

• Euro solar - I'm not going to install your solar panels as I already have some.
• Westpac - You can live your own way, I don't need to consolidate my debts with a new westpac flexi loan.
• Opel Astra - I bought a vw last week; get stuffed.
• Myer is my store - not for me I don't need anything.
• 2 pairs no gap - I don't care if it now includes designer prescription sunglasses, I don't need glasses.

get the idea?

I have never had a buyer turn up at an open home which I didn’t know was turning up and buy it.

I don't believe that.

I also get to meet a lot of prospective sellers at open homes. Wow, this seems great! Well for the agent anyway….

We all know agents work for themselves, and the vendor number 4.

Some buyers can’t make the time and feel they are inconveniencing the agent if they ask to see the property via appointment (buyers have told me this).

There is a modern device, it's called a telephone. Some are even wireless.

As an agent, it is very hard for me to get feedback from buyers at a busy open home.

hire an assistant.

Not everyone signs the book or leaves real information. Some buyers walk in and out before I get a chance to speak to them.

That's because they have no interest in that property. Hire an assistant and you can call the prospects on Monday.

• Looking for someone else

based on your posts I would be looking for someone else.

I'd love to buy a home from you, there's no chance you would sell my homes.

 

[thepeoplesagent]

I'd love to buy a home from you, there's no chance you would sell my homes.

Guess I'm lucky your in Brisbane then... Thankyou for the feedback though.

 

[Scott No Mates]

You don't necessarily see every house have ofi's. Houses in the upper price brackets will be by inspection only - why, you need to qualify your buyers: who are they? are they cashed up/able to close a deal/are they motivated/what is their timeframe.....If you can't fill in the blanks, they're not going to be able to buy (in any time soon).

Every contact with an agent is a contact for the agent ie a prospect (buyer or potential seller) so open or not it doesn't matter, the open just gives the agent ammo to beat the vendor with to say there is lots/little interest at that price.

 

[spludgey]

There are a few places that I made offers on that I saw at an open house. I only went because of the open house in the first place as they didn't seem to fit my criteria that well on paper. None of them settled (though one was accepted).
To be honest, I don't like having a REA show me a house. I just want them to be there when I want to ask questions and an open house is perfect for that. Plus there is the added benefit of being able to eves drop on other people talking to the agent. And you can check out the competition and gauge if there is interest much better.