Is the open house what it used to be?

The Providence Journal, October 7, 2007 by Christine Dunn, Journal Staff Writer

"You can talk to 100 real estate agents," broker John Hodnett says.  "And 40 or 50 will tell you they're a complete waste of time.

...It's one of the most widely debated things in real estate."

In his 16 years in the real estate business, broker John Hodnett has held only one open house.  "I don't think I've ever lost a sale as a result," he said.

Hodnett, of Lila Delman Real Estate, acknowledges that many agents, including some in his own office, swear by open houses as an important and effective marketing tool.  But "personally, I'm not a fan," he said.

"You can talk to 100 real estate agents," Hodnett said.  "And 40 or 50 will tell you they're a complete waste of time...It's one of the most widely debated things in real estate."

According to the National Association of Realtors, 80 percent of homebuyers last year started their search on the Internet, up from only 2 percent in 1995.  But 42 percent of buyers also went to open houses as part of their search process.

For buyers, open houses offer an opportunity to see properties in person and get a feel for the market without the pressure of working with a real estate agent.  For sellers, just the act of scheduling the first open house can jump-start an effort to get a property market-ready by ridding the house of clutter and attending to small repairs.

The Internet, and the opportunity it gives buyers to get detailed information about properties through virtual tours, and even detailed floor plans online, has made the open house less relevant, Hodnett said.

It's Hodnett's view that "real buyers" call and make appointments to see properties, and open houses usually only attract the curious and unserious.

"You can go to an open house without crossing the threshold,"he said.  "...If you're a real buyer, you'll call."

"I'm personally not convinced that me sitting in somebody's house for three hours on a Sunday afternoon is the best use of my time."

Some sellers, especially frustrated sellers in a rough market, don't believe their agents are working hard enough if they're not holding open houses.  Hodnett said some agents may schedule open houses just to show their clients that they're making an effort, willing to put "sweat equity" into the sale.

Other sellers, particularly owners of high-end properties, don't want to open their houses to the public, Hodnett said.  Many clients worry about security and don't want unqualified, unknown prospects wandering, possibly unattended, through their homes.

If three or four people are visiting a house at the same time, it's difficult for one agent to keep an eye on every person every minute.  "It's a major issue on higher-end lisitings," he said.

The Providence Journal, October 7, 2007

Christine Dunn, Journal Staff Reporter