My father used the weekend open house as a way of selling new construction for a mom-and-pop developer in the mid-1960s.

I occasionally tagged along with him -- not because of any interest I had in the houses he was selling, but because the development was a couple of miles from Long Island Sound and the best places for fried clams and frozen custard.

He considered open houses an efficient way of obtaining the most exposure for the houses in the shortest period of time. Since he was only a part-timer, weekends gave him plenty of free time to prepare transactions, even though little could be done outside of Monday-through-Friday business hours.

Since then, open houses have become an integral part of a much different real estate industry. But real estate agents and brokers differ considerably regarding the value of such showings.

For example, Christopher J. Artur, an independent broker in Philadelphia, considers the open house a waste of time for both his buyers and sellers.

"The people I deal with are first-time buyers who typically don't have the credentials to walk in to a house and make an offer," said Artur, who hasn't had an open house in more than a decade. "Most of them don't have enough for a down payment and closing costs, and have to have their credit cleaned up before they can even be considered for a mortgage, let alone pre-approval for one."

Yet other agents say that weekend open houses are a tradition and that sellers expect it as part of the total package, just like regular advertising. In downtown areas of major cities and in suburban communities, especially in the spring and autumn, the open house has become an integral part of Sunday afternoon, whether or not the browsers are buying.

Many agents say that some of the lookers might not be interested in the house they are showing that afternoon, but might be willing to check out other listings. Some of them also might be looking for others, including family or friends relocating from other areas.

On the down side, some owners complain that chief benefit of an open house is to give maximum exposure to the listing agent and not their house. While that might be unfair, some of the people who do show up at open houses are neighbors who may never have seen the inside of the house, other sellers checking out the competition, or owners want to list houses and are looking for a capable agent or broker.

If anything, the open house puts the sellers on their toes. As Philadelphia agent Bari Shor says, "this is show time," and that means the house has to be as pretty as a picture for the hour or two of maximum exposure.

Agents do seem to agree that open houses have a limited shelf life. Most will not offer more than two open houses for a listing, and certainly will not have them after the first couple of weeks a house is on the market.

If a house hasn't sold by the second open house, there may be a problem with that house. And unless something is done to correct that problem, further open houses will be pointless.

Open houses are good for feedback, especially in the search for "proper pricing."

For example, take my house, which went on the market on June 3, 2001. The neighborhood had been one in which the rambling Victorian housing stock had long been undervalued. However, as prices of comparable houses in similar, yet better-known destination neighborhoods put even well-to-do people out of the market, my neighborhood became hot.

Lack of inventory turned up the heat. The agent and I agreed on an asking price of $179,500. However, a two-hour open house that attracted more than 50 groups (and a police officer to direct traffic) helped bring in a selling price of $222,500. There were six other bids from that open house -- all at or above asking.

Again, a hot market in which a rather ordinary house sold in three days. And there were similar stories elsewhere in the neighborhood.

So an open house can help validate an asking price, or, through feedback, can help put that price in line with what the market will bear. The same open house can also help affirm an agent's advice -- the way the house looks or what it needs -- as well as marketing strategy.

Some agents have taken the open house along new routes. For example, instead of sitting at one house at a time, one enterprising agent organizes tours of listings in a particular neighborhood or on a single street.

He advertises on Sunday of the previous week, identifying the location where prospective buyers can meet him. Then, either in a van or on foot, the potential buyers are shepherded through each house.

By the way, he does this on Saturday afternoons in the fall. That way, he doesn't have to compete with professional football.

For more articles by Al Heavens, please press here.

Published: January 3, 2002

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Broker Value Increases In Tough Markets

Al Heavens writes about real estate and home repair and improvement. He is the author of What No One Ever Tells You About Renovating Your Home: Real-Life Advice For Hassle-free, Cost-Effective Remodeling.

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