A Buyer's Mini-Guide to Open Houses

One technique that real estate agents employ to find more home buyers is to conduct an "Open House" at a property that they currently have listed for sale. Statistical studies have shown that there is no more than a 1% chance that the featured home will sell. As a result you might question why agents even bother with conducting these events.

A recent National Association of Realtors study showed that 44 percent of people who talk to a Realtor to discuss purchasing or selling of a home will actually end up buying or selling within the next year. Consequently if an agent gets 100 people to visit open houses a year, they will be in contact with about 44 possible clients. The benefits of these events are that they produce leads, generate referrals and keep the Realtor or the real estate business name actively engaged in the market. They actually do very little for the home seller.

So, if it is known that there is a less than 1 percent chance of selling the featured property, why do so many people visit open houses? The fact is that most people want what they are not able to have. They shop in stores for high-end products, and later buy something that they can actually afford. The same goes for many home buyers. They are drawn to homes that are more expensive than they can afford. An agent who has an opportunity to meet with them during an open house event can expect that they will eventually buy a home that is priced 20-30% below the value of the featured home.

Here are a few tidbits of information that you may not be aware of. There is a considerable amount of work performed to prepare for an open house that happens behind the scenes. While the typical house is open for 3-4 hours, a true real estate pro will do plenty of work both before and after the event. Some of the things a Realtor does include:

Announcing the opening through advertisements Inviting prospects during the week before the event through targeted phone calls and mailings Flyer design and distribution to other real estate agents Face-to-face contact with people in the local neighborhood to spread the word Preparing the home prior to the event to include cleaning and staging Placing directional signs in order to maximize traffic Preparing snacks and drinks for visitors (sometimes) Post open house clean-up

The next time you are out for a drive and decide to view an open house, you'll now know more about the ins-and-outs of an open house. The real estate agent has in all likelihood prepared all week for the event. Don't hesitate to ask her questions about the home, the neighborhood, and other homes for sale that you may find appealing. Who knows, perhaps you will be part of the 44% of open house visitors who purchase a home during the next twelve months!

Article Source: http://casinoarticles.us

Jim Navary has been a freelance writer and researcher for over thirty years reporting on a wide range of subjects. He is also a licensed real estate salesperson in the Commonwealth of Virginia specializing in Fort Lee VA real estate and Fort Lee VA homes for sale.

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