The Open House: Making the "Seller Feel Like Something is Happening"

The Sacramento Business Journal examines the return of the open house and agent "caravans."

The popularity of open houses as a selling tool blossoms and withers with the housing market, and with the careers of individual real estate agents. While some agents swear by them, others find they're not worth the time...

Making connections: Leigh Rutledge, a Realtor with Dunnigan Sierra Oaks for 25 years, said she hasn't done an open house in many years, and doesn't miss them. She said 1 percent to 2 percent of homes are sold through open houses nationwide, a statistic that's not enticing enough for her...

Smoke and mirrors? Nightingale uses open houses to show off new listings, or to "breathe life into something that's been on the market for awhile," she said. If a property sits on the market for a few weeks, she circles back and does another open house to sort of "reintroduce it." Rutledge said once she explains the ins and outs of an open house, most sellers decide not to have one. With today's slower market, there will probably be an increase in open houses, especially since many agents will hold an open house just to make the seller feel like something is happening, she said...

A caravan of agents: Many agents are reviving tours or caravans, a particular day when a property is open only for real estate agents, Vlasek said. A common technique 20 to 30 years ago, tours fell out of fashion about a decade ago, and are now coming back into vogue. Vlasek said the changes in the marketplace in the past six months are spurring tours...

Rutledge said the popularity of tours or caravans fluctuates with the market. She participates in caravans with her colleagues about once a week, and finds them a useful marketing tool. "Homes are on the market longer now, so Realtors are getting together and helping each other get these properties sold," Rutledge said...