Open Houses, who are they for and why we do them. Jamie Hooper gives us the real story behind the open house in Vancouver.
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Why Realtors do Open Houses
(the following is a video transcription)
Today I want to talk to you about the Real Truth – Why Realtors do Open Houses.
Going back in history to early or mid 1960’s if you hired a realtor to sell your property, they were responsible for finding the buyer. There was no co-operative system that the MLS was operated under for the last 52 or 53 years. You were responsible for finding the buyer yourself. In 1963 if you were hired to find a buyer for someone’s property how would you do that? You would probably put a for sale sign out in front for when people drove by they would see, or you would put a classified add in the newspaper, or the third thing that you would do is you would hold an Open House for people to actually view the property. That was the only way you could get it done back then.
Well the system changed in the mid 1960’s but the industry didn’t change with it. In the mid 1960’s the MLS came into being and what happened is then there was a co-operative system where buyers and other agents could bring you an offer on your property. So this system has been under use for the last 53 or 54 years. Even knowing that however, we continued to do Open Houses as an industry.
The reason we continued to do them was because it was visual, the seller may not see you for the rest of the week he may talk to you on the phone but it was showing them that you are doing something to try and sell their home. The second reason for why Realtors want to do that is because they want to meet buyers. What do I mean by that? Let’s say Mr and Mrs Jones came to my listing and they walk around and they have a look (by the way this was during that era, this has all changed now) and they would come up to me and say “Gee you know we really like this house but its one bedroom short”. I would turn around and say “You know what, there’s one that has an extra bedroom just like this one down the street and I’m going to be available at 4pm today to show it to you, if you’d like I can get you in there!” What’s happened there is I’ve met someone who wants to buy real estate and hopefully they’ll like me and I’ll be able to sell them a property.
Realtors will come back and tell me right now “Oh I sell houses at Open Houses all the time”- well I’d like to qualify that because industry standards say a very small percentage of houses sell at Open Houses.
So that’s how we operated from the mid sixties to June 14, 2018. Now the rules have changed again and I think Open Houses are going to change again. What’s happening now is that realtors have to give a bunch of disclaimers to the general public when they attend Open Houses. We have to give them information on agency rules and regulations and it doesn’t give you that chance to bond with someone. If you meet someone at a restaurant and you’d like to talk with them and if ask them to sign a bunch of disclaimers first they’re probably not going to be very excited to speak with you. The first few Open Houses I’ve done since the change to the rules, that’s how I’ve found it. Its hard to build a relationship with someone when you have to start your conversation that way. The second thing that is coming along that is going to change Open Houses is Virtual Realty. Today there is only about 50 million people hooked up with Virtual Realty and they say by 2023 that figure will be over 1 billion people. You will be able to go online and check these houses out and do everything but smell them in 10 or 15 minutes when it would have taken hours before.
I’m Jamie Hooper with Re/Max Crest, hopefully that has given you a little insight into why Open Houses are not necessary to get your property sold and if you have any other questions about real estate feel free to email or contact me by phone.