Real Estate Talk:
Open Houses and Ads

Are open houses and advertisements effective in attracting buyers?

By Joseph Marovitch

Previously published  in WestmountMag.ca

An open house can be effective to some extent, but more often than not, it is the brokers who acquire new clients through them, more than potential buyers for the seller. Visitors arrive, leave their contact information, tour the property, and then leave. The broker follows up a day or two later to see if there is interest in the property. If the answer is no, the broker will take the opportunity to ask why and then inquire about the prospect’s specific needs. This is how the broker subsequently acquires a new client.

Ads can attract buyers, but more often than not, they attract clients. Advertisements maintain broker visibility and expose the property to the public at large. Ads also allow the broker to promote their website, so that buyers can view other properties they have for sale.

An open house can produce potential buyers, however it also may attract your neighbours, Sunday afternoon couples on a leisurely stroll, relatives, or worst case scenario, no one at all.

All that said, the most effective way to search for a property is to hire a broker. You provide the criteria such as preferred location, number of bedrooms and bathrooms, style and any other items you require for your future home. The broker can use the brokerage system to narrow the search to the desired criteria, thus finding the ideal property much more quickly.

The broker arranges visits and researches the house for any issues, such as problem declarations, how long the house has been on the market, and any debt. The broker can ascertain whether property taxes have been paid or if there is an assessment, under which the property has a certain number of days to pay taxes and/or other debts or be seized by the bank or government. Once these inquiries are completed, the broker can suggest a price for an initial offer.

Real estate advertisements are appealing to clients seeking successful agents. Brokers whose names appear regularly in publications seem to be thriving, which can be a major draw for prospective property shoppers. When inquiring, don’t forget to ask how many sales, listings and expired listings (unsold properties) the broker has. This gives you a solid idea as to how successful the broker has been to date.

The most effective ways to attract buyers are as follows, from number 1 being the most effective to number 5 being the least effective:

1.  The multiple listing service known as Centris. This system is a tool used by brokers who work with buyers.
   .
2. Broker-to-broker communication, such as calling and emailing to inform one another regarding their current inventory. Clients want brokers who are proactive within the brokerage community.
   .
3. Brokers with sizeable databases of potential buyers whom they email, mail and telephone call.
   .
4. Open houses
   .
5. Ads

Keep in mind that one of the key reasons homes sell is that they are properly priced for the market, and then these systems are administered. The first three are more effective in attracting buyers. The last two are more effective at impressing the seller because they see the broker actively marketing the home.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, go to the search link and type in Joseph Marovitch.

Image: Andrew Burlone

Other articles by Joseph Marovitch
Other recent articles