One method that real estate agents employ to meet more home buyers is to hold an "Open House" at a home that they listed for sale. Studies have shown that there is less than a 1% chance that the featured home will sell. So, one might wonder why Realtors even bother to hold them.

A recent National Association of Realtors study showed that 44 percent of people who meet with a real estate agent about buying or selling a home will actually end up buying or selling in the next twelve months. Therefore if a real estate agent gets 100 people to visit open houses annually, they will be dealing with about 44 potential clients. The advantages of open houses are that they identify leads, produce referrals and keep the salesperson or the real estate company name actively engaged in the market. They really do very little for the home seller.

So, if it is recognized that there is no more than a one percent chance that the home will sell, why do so many folks show up for open houses? The fact is that most people want what they cannot have. They shop in stores for expensive products, and later buy something that they can actually afford. It's a similar situation for most potential home buyers. They are attracted to homes that are priced a bit higher than they can buy. A Realtor who is able to establish contact with them at an open house can expect that they will ultimately buy a home that is priced 20-30% lower than the value of the featured house.

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

Preparing advertisements to announce the open house

Inviting prospects during the week before the opening through targeted phone calls and mailings

Flyer design and distribution to other real estate professionals

Going door-to-door in the local area to spread the word

Cleaning and staging the home prior to the event

Placing directional signs in order to maximize traffic

Preparing snacks and drinks for visitors (at times)

Cleaning up after the event

The next time you are out and about and decide to view an open house, you'll now know more about the ins-and-outs of these events. The real estate pro has most likely prepared all week for the event. Don't hesitate to ask her questions about the house, the neighborhood, and even other homes for sale that are comparable to the one that you are in. Who knows, maybe you'll be one of the 44% of open house visitors who purchase a home during the coming year!

By Jim Navary

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

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