Are Luxury Home Open Houses Effective

Over the past several years I have had the privilege of listing and selling some noteworthy luxury properties in the area ranging in price from $1 to $2.75 million.  Through those sales I gained some great experience working in this exclusive and extremely small segment of the market.  Further, through attending the National Association of REALTORS® conference in the U.S. I have met and kept in contact with two of the top luxury home REALTORS® in the U.S. and I have read both their books dealing with the luxury home segment.  This has and continues to give me additional insight into the luxury home market which along with my own experience I will share via this blog.

  Many sellers and REALTORS® for that matter question the value of Open Houses.  I can honestly say that in over 13 years of practicing real estate, I have never sold a home through an Open House.  I have however met many people to whom I sold another property to at some later point in time.  Properly utilized, Open Houses have always served as a great way to meet people and gain potential clients.  Every once in a while, a house will sell through an open house but it’s rare.  Times however change and the validity of holding an Open House even for an expensive luxury home should not be discounted or casually dismissed.

  

  As I have stated before, technology and primarily the Internet has had a profound impact on all manner of businesses and real estate is no exception.  Many buyers spend weeks if not months searching for properties online.  Buyers have often viewed countless listings and gathered an abundance of information before they ever talk to a REALTOR® much less step inside the front door of a home listed for sale.  An open house, properly executed even for expensive properties can serve to bridge the gap between a prospective buyer sleuthing around online versus physically getting into a property and meeting a REALTOR® with whom they can develop a relationship.

 

  Much of the real estate market here on southern Georgian Bay has traditionally been made up of secondary properties.  While some potential Buyers in this market may be moving up from a lesser property to one of greater size and value, many of these buyers currently do not reside here nor are they ultimately familiar with the market.  I often find that a great number of attendees at Open Houses ask more market related questions than they do about the property they are in.  As a REALTOR®, this creates an excellent opportunity to demonstrate your expertise, thus potentially gaining their trust as a client. 

  What’s changed in recent times however with respect to Open Houses is this. On an increasing basis however, I learn by asking questions of my Open House attendees that they have seen and have been watching the listing online.  They have never called or emailed me to inquire further but as soon as they learn of an Open House being held, they are there.  The Open House is a non-threatening way to get inside for a first-hand look without feeling pressure by contacting a salesperson.

  In my next post I will touch on the various ways in which a luxury home Open House can be organized and executed in order to generate the best results.