Sellers usually want their listing agents to work hard for their commission check. One of the ways an agent works really hard is by holding a public open house during the weekend. Is it effective? In my view, it is not.
You may be asking yourself, if it’s not effective why do it? Well, there are several reasons. The most important one being that, in real estate sales, public open houses are a long-standing tradition.
Let me tell you a story about the power of traditions. There was a sweet lady named Betty whose claim to fame was making the best-baked ham in the world. Every Thanksgiving Betty was asked to bring her delicious ham to the family dinner. One Thanksgiving, her husband Max walked into the kitchen as she was getting ready to place the ham in the baking dish. Max was surprised to see that, once she had done that, Betty picked up her electric knife and cut off about two inches from the end of the ham. He asked what the purpose was-and according to the story-Betty replied in a whisper, “It’s my mother’s secret.”
At dinner that evening, Max asked his father-in-law about “the secret.” He wanted to know why cutting off the end of the ham made it taste better. His father-in-law asked Max to keep it confidential and quietly recounted the story. It seems one Thanksgiving (More than forty years ago!) Betty’s Mom bought a very large ham; so large that she couldn’t get it into the baking pan. The solution? She cut off a piece at the end and voilà, she made it fit perfectly into the pan.
Max kept his promise to the old man; anyway he didn’t have the heart to tell Betty. To this day, the secret is safe; the tradition of cutting off a piece of the ham lives on.
Just like in the story, the tradition of holding public open houses lives on, even though in modern times they are ineffective. According to a survey conducted by the Real Estate Center at Texas A&M University, public open houses may be more beneficial for agents than sellers because they provide an opportunity for agents to make connections and generate business. Despite this, most agents try to discourage sellers from requesting public open houses. In essence they are troublesome, a security risk, and a waste of time.
My advice? If a seller wants their listing agent to work hard for their commission, I would start by suggesting they require professional photos. Sellers should also make sure the agent has developed a marketing strategy and a media plan to promote the property. A comprehensive plan that is not limited to small print ads in community newspapers and real estate supplements. Particularly if the ads feature the listing agent’s photo more prominent than their home.