Neighbors Visiting Open Houses

[DTalos]

There is a home for sale in my neighborhood that went on the market last week. However, about two weeks ago, the listing agent left a "coming soon" notice on the door indicating a preview open house, presumably for the neighborhood before the house went on the market. From my window, I observed some neighbors I know of visiting the "private" open house before the home was listed and then after the listing was officially listed and appeared on popular national real estate websites and with a for sale sign in front of the home, I still saw neighbors visit when there was an open house.

The home has close to 50 pictures on these popular real estate websites with each room and all the upgrades well photographed. Knowing that one can view the detailed listing photos online, what is the purpose or benefit of a private open house before the home goes on the market officially, and of neighbors physically visiting the open house? Is there valuable information that a listing agent can provide about the neighborhood? For neighbors who have lived in the neighborhood for a decade or more, is there any benefit to telling the agent all about the neighborhood?

[barnaclebob]

The main benefit is for the agent to get more leads on any neighbors looking to sell soon.

A minor side benefit would be to generate some word of mouth for the listing so your neighbors can tell any friends that want to move to the area. The agent can also provide some feedback to the sellers if the neighbors have any useful critiques.

[livesoft]

Marketing. Neighbors can tell their friends who may be looking for a home to buy. Also, the agent meets people who may sell their house in the future and might use them as an agent.

[delamer]

The main benefit is for the agent to get more leads on future listings from any neighbors looking to sell soon.

A minor side benefit would be to generate some word of mouth for the listing so your neighbors can tell any friends that want to move to the area.

On Bogleheads, we sometimes see posts from people who want a bigger house in the same neighborhood.

So there’s that too.

[barnaclebob]

The main benefit is for the agent to get more leads on future listings from any neighbors looking to sell soon.

A minor side benefit would be to generate some word of mouth for the listing so your neighbors can tell any friends that want to move to the area.

On Bogleheads, we sometimes see posts from people who want a bigger house in the same neighborhood.

So there’s that too.

Maybe it also gets more neighbors to not come to the real open house and tell dirty secrets under their breath where potential buyers can overhear.

[Kenkat]

These are held for nosy neighbors who want to get a first hand look at your house. The neighbor will say they have a child / sister / friend who is looking for a house just like yours. When we sold our first house, our agent called them lookie-loos.

[Parkinglotracer]

I put my house for sale by owner in upstate New York last month. Couple days later, surprising to me my next door neighbor texted me and said they wanted to match the highest offer we got and buy it for their aging parents who live hours away. Every person who knows about your house for sale may be the one to buy it.

We bought a house 2 miles away after being a lookie loo. I don’t think it hurts to have neighbors look at your house. After looking - We put flyers in the condos newspaper boxes saying to let us know we are interested in purchasing in the neighborhood. The seller called us and we bought it with no realtor.

[bongo]

Maybe to get that casserole dish back that Nancy never returned :\

[adamthesmythe]

I was under the impression that preview open houses were mostly for other realtors.

A general note. Usually when selling something it is desirable to expose the object to the largest number of potential buyers. You may think that the best buyer has particular characteristics but you may be wrong. People DO buy houses they find by visiting open houses, neighbors DO buy neighboring houses; neighbors DO mention houses to prospective buyers they know. Etc. etc.

A seller doesn't HAVE to participate in any of these mechanisms. If he wants he can require a background investigation and posted bond before viewing the house. But most likely broad exposure is the best idea.

[muffins14]

There is a home for sale in my neighborhood that went on the market last week. However, about two weeks ago, the listing agent left a "coming soon" notice on the door indicating a preview open house, presumably for the neighborhood before the house went on the market. From my window, I observed some neighbors I know of visiting the "private" open house before the home was listed and then after the listing was officially listed and appeared on popular national real estate websites and with a for sale sign in front of the home, I still saw neighbors visit when there was an open house.

The home has close to 50 pictures on these popular real estate websites with each room and all the upgrades well photographed. Knowing that one can view the detailed listing photos online, what is the purpose or benefit of a private open house before the home goes on the market officially, and of neighbors physically visiting the open house? Is there valuable information that a listing agent can provide about the neighborhood? For neighbors who have lived in the neighborhood for a decade or more, is there any benefit to telling the agent all about the neighborhood?

Looking at houses can be fun.

So can talking about your neighbors: “I love what Denise did with the kitchen”, or “wow Fred definitely designed this bathroom, it makes no sense”

Also obviously the more publicized a home is, the more competition to buy it. If you can get in early that can be an advantage

[RJC]

Open houses are for marketing the seller's agent. Offers have usually been submitted by the time Sunday rolls around, at least in our area.

Serious buyers always reach out during the "coming soon" phase for private showings.

[greg24]

People are curious. Just as you were, when you were noting the neighbors visiting the open houses.

[mrmass]

Often called "Looky Loos"

[mark_in_denver]

If your looking to buy, you go to a showing to get a feel for it and look closer. Neighbors visiting is normal behavior, it is what it is.

[mouth]

For me it was an easy way to get a look at other peoples renovation ideas. Our local area has a LOT of identically build homes from the 1950's. But they aren't really identical because they are sort of "sectional" with variations on how they were finally built based on which way the hill sloped, how much it sloped, and which side was to the street. Being from the 1950s that means there's been a lot of additions and renovations. So it was a great way to get an idea of what was possible with our house given the underlying construction method.

Also as other's have mentioned, we might have considered moving within the same neighborhood. We didn't, but it was possible.

[Luke Duke]

People are nosy. My wife would have gone over to look at it. I would have stayed at home since there is a 0% of us buying it. If the owners wanted me to see it they would have invited me over when they lived there.

[runner3081]

Guilty as charged, we have 200 houses in our neighborhood, I go to every open house.

[Kagord]

I've done this, one of the first questions I remember usually being asked, "What do you think about this listing price of X for this offering?"

[Watty]

Is there valuable information that a listing agent can provide about the neighborhood?

At least in some neighborhoods there is a reasonable chance that they will sell the house to someone who hears about the house through the early open house.

I have seen houses in my subdivision sell to;
1) Renters who want to buy in the subdivision.
2) Adult children who have parents living here. In multiple cases kids that who were raised in the subdivision have grown up and and returned and bought houses here.
3) Older parents have bought houses to live near their kids and grandkids.
4) In several cases siblings have bought a house here to live near their brother or sister. In one case three retired siblings each own a house in the subdivision.
5) Friends buy a house because they heard about the subdivision through a friend.

The subdivision has over 300 houses and is a bit unusual because it was one of the first subdivisions build out in the country 50 years ago and some of the top schools in the state are here. The houses are nice 2,000 square foot (ish) track homes with large lots and usually well maintained. Any other house in the area which has been built in the last 20+ years is likely a McMansion on a tiny lot which might cost three times as much. The subdivision also has a nice pool and tennis courts and HOA dues are low and the HOA is very laid back.

There is an active Facebook group for the subdivision and there are frequently posts by people there practically pleading to be contacted if anyone knows of a house which is coming up for sale. Our lot is unusual in that it is one of the largest lots in the neighborhood and two of our neighbors have already asked to to told if we ever decide to sell it since they would want to buy it either for themself or a relative. (We are retired and occasionally talk about downsizing so their interest makes sense.)

Real estate agents also are looking for new leads for future listings so they are also glad to see neighbors stop in. By having a preview open house for the neighbors that also allows them to have more time for lookie loo neighbors compared to the first regular open house when they may be very busy.

[FeralCat]

I hate nosey people. That being said, in a hot market, showing the house to the neighbors isn't necessary. A serious buyer will have a real estate agent. It sounds like the market may be slowing in your area, and either the owner(s) or the agent is nervous. The seller might have invited the neighbors to even create buzz. Some of my neighbors who I have known well have invited me to their first open house. I don't go, because I don't care what their house looks like inside.

[celia]

We sometimes go to open houses in our neighborhood. DH likes to know what the going price is for a house like ours and I am looking for new decorating/storage ideas. I also look to see who has native plants that aren't visible from the street. (Some butterflies and birds need a "path" of the plants they thrive on.)

[snic]

I hate nosey people. That being said, in a hot market, showing the house to the neighbors isn't necessary. A serious buyer will have a real estate agent. It sounds like the market may be slowing in your area, and either the owner(s) or the agent is nervous. The seller might have invited the neighbors to even create buzz. Some of my neighbors who I have known well have invited me to their first open house. I don't go, because I don't care what their house looks like inside.

Well, maybe you should care what their house looks like. If/when you want to sell your house, it makes a *lot* of sense to see what your neighbors houses are like and what they are selling for, so that you can come up with a sensible asking price.

I also disagree that showing to neighbors isn't necessary in a hot market. Good marketing is good marketing and benefits the seller no matter what. In a slow market, good marketing might generate 20 leads and bad marketing might generate 5, so the benefits are obvious. In a hot market, the numbers might be 200 and 50. With good marketing and strategy, a bidding war might materialize, whereas the chances are less with bad marketing, and/or the number of offers might be less. You *always* want to get your house exposed to the maximum number of people. I don't care if they're nosy neighbors - that's great, they can come on over and then tell their friends what a great house is for sale in their neighborhood.

In fact, one thing I never understood about my local market is that in a hot market, sellers' agents will set a date to receive "highest and best" offers - and that date is right after the first and only open house. Why have only one open house? Have two, and increase the number of people who see it. Not everyone is available THIS Sunday from 2-4, but they might be free NEXT Sunday. What's the hurry? Maximize views, and make clear to everyone when the offer date is. But I was told it's simply not done.

[FeralCat]

I hate nosey people. That being said, in a hot market, showing the house to the neighbors isn't necessary. A serious buyer will have a real estate agent. It sounds like the market may be slowing in your area, and either the owner(s) or the agent is nervous. The seller might have invited the neighbors to even create buzz. Some of my neighbors who I have known well have invited me to their first open house. I don't go, because I don't care what their house looks like inside.

Well, maybe you should care what their house looks like. If/when you want to sell your house, it makes a *lot* of sense to see what your neighbors houses are like and what they are selling for, so that you can come up with a sensible asking price.

I also disagree that showing to neighbors isn't necessary in a hot market. Good marketing is good marketing and benefits the seller no matter what. In a slow market, good marketing might generate 20 leads and bad marketing might generate 5, so the benefits are obvious. In a hot market, the numbers might be 200 and 50. With good marketing and strategy, a bidding war might materialize, whereas the chances are less with bad marketing, and/or the number of offers might be less. You *always* want to get your house exposed to the maximum number of people. I don't care if they're nosy neighbors - that's great, they can come on over and then tell their friends what a great house is for sale in their neighborhood.

In fact, one thing I never understood about my local market is that in a hot market, sellers' agents will set a date to receive "highest and best" offers - and that date is right after the first and only open house. Why have only one open house? Have two, and increase the number of people who see it. Not everyone is available THIS Sunday from 2-4, but they might be free NEXT Sunday. What's the hurry? Maximize views, and make clear to everyone when the offer date is. But I was told it's simply not done.

As already stated, there are pictures online. In my market, there isn't more than one open house. Houses go on the market on Friday, there is a bidding war over the weekend, and the house is under contract Tuesday morning. Marketing isn't necessary because all home buyers are constantly receiving Redfin or Zillow alerts.

[biscuit5]

...Marketing isn't necessary because all home buyers are constantly receiving Redfin or Zillow alerts.

this...........

--

I hate nosey neighbors. I have several.

[DarkHelmetII]

In fact, one thing I never understood about my local market is that in a hot market, sellers' agents will set a date to receive "highest and best" offers - and that date is right after the first and only open house. Why have only one open house? Have two, and increase the number of people who see it. Not everyone is available THIS Sunday from 2-4, but they might be free NEXT Sunday. What's the hurry? Maximize views, and make clear to everyone when the offer date is. But I was told it's simply not done.

I think the premise is that as DOM (days on market) increases the house becomes less desirable, all other things being equal.

[FeralCat]

In fact, one thing I never understood about my local market is that in a hot market, sellers' agents will set a date to receive "highest and best" offers - and that date is right after the first and only open house. Why have only one open house? Have two, and increase the number of people who see it. Not everyone is available THIS Sunday from 2-4, but they might be free NEXT Sunday. What's the hurry? Maximize views, and make clear to everyone when the offer date is. But I was told it's simply not done.

I think the premise is that as DOM (days on market) increases the house becomes less desirable, all other things being equal.

Yes, if the house isn't under contract before the second weekend, it will take a price cut to sell. Either it is overpriced, or there is something wrong with the house: on a six-lane road for example, or needs major work such as foundation repairs.

[Sandtrap]

There is a home for sale in my neighborhood that went on the market last week. However, about two weeks ago, the listing agent left a "coming soon" notice on the door indicating a preview open house, presumably for the neighborhood before the house went on the market. From my window, I observed some neighbors I know of visiting the "private" open house before the home was listed and then after the listing was officially listed and appeared on popular national real estate websites and with a for sale sign in front of the home, I still saw neighbors visit when there was an open house.

The home has close to 50 pictures on these popular real estate websites with each room and all the upgrades well photographed. Knowing that one can view the detailed listing photos online, what is the purpose or benefit of a private open house before the home goes on the market officially, and of neighbors physically visiting the open house? Is there valuable information that a listing agent can provide about the neighborhood? For neighbors who have lived in the neighborhood for a decade or more, is there any benefit to telling the agent all about the neighborhood?

All in the "business of sales and selling".
and
"people being people"; for fun, for curiosity, considering selling their own home, etc.
and
"people watching"; for fun, for curiosity, etc, etc.

j

[snic]

As already stated, there are pictures online. In my market, there isn't more than one open house. Houses go on the market on Friday, there is a bidding war over the weekend, and the house is under contract Tuesday morning. Marketing isn't necessary because all home buyers are constantly receiving Redfin or Zillow alerts.

I think the premise is that as DOM (days on market) increases the house becomes less desirable, all other things being equal.

Interesting perspectives - which maybe distorted by a superheated market and/or local market practices that may not make much sense. While I agree that motivated buyers who "know the game" are going to be poised to jump, the fact that there are lots of them in a hot market doesn't mean that sellers should ignore those who go about it in a more casual way. As I said, anything that helps increase the number of offers is good for the seller. So if you give all potential buyers the opportunity to see your house, you'd increase the number of offers. In cases where the seller's agent sets a date to receive offers, there's no question about the house being less desirable simply because it was on the market for 10 days instead of 3: it simply wasn't going to sell before then because no offers were being entertained, and everyone knows it.

I base this on my own psychology, having bought and sold a few houses (in balanced to hot markets). After seeing a house and getting a good first impression, I want to spend some time thinking about it, talking it over with my wife, maybe getting friends or relatives to see it. I would definitely not submit an offer without the ability to go back and see it at least once and mull it over. As a seller, I'd rather allow as many potential buyers as possible to become comfortable with making an offer - so that they will actually do so and not sit it out because they don't want to make such a huge commitment based on one brief look.

Of course, I suppose this could work in reverse: if you force everyone who sees the house on Sunday to submit an offer by Monday, you might pressure people into submitting an offer, which they would think twice about if they saw the house again and thought about it. My sense is that this doesn't happen as much as the opposite (pressure turns people off) because this is such an enormously impactful decision.

[FeralCat]

As already stated, there are pictures online. In my market, there isn't more than one open house. Houses go on the market on Friday, there is a bidding war over the weekend, and the house is under contract Tuesday morning. Marketing isn't necessary because all home buyers are constantly receiving Redfin or Zillow alerts.

I think the premise is that as DOM (days on market) increases the house becomes less desirable, all other things being equal.

Interesting perspectives - which maybe distorted by a superheated market and/or local market practices that may not make much sense. While I agree that motivated buyers who "know the game" are going to be poised to jump, the fact that there are lots of them in a hot market doesn't mean that sellers should ignore those who go about it in a more casual way. As I said, anything that helps increase the number of offers is good for the seller. So if you give all potential buyers the opportunity to see your house, you'd increase the number of offers. In cases where the seller's agent sets a date to receive offers, there's no question about the house being less desirable simply because it was on the market for 10 days instead of 3: it simply wasn't going to sell before then because no offers were being entertained, and everyone knows it.

I base this on my own psychology, having bought and sold a few houses (in balanced to hot markets). After seeing a house and getting a good first impression, I want to spend some time thinking about it, talking it over with my wife, maybe getting friends or relatives to see it. I would definitely not submit an offer without the ability to go back and see it at least once and mull it over. As a seller, I'd rather allow as many potential buyers as possible to become comfortable with making an offer - so that they will actually do so and not sit it out because they don't want to make such a huge commitment based on one brief look.

Of course, I suppose this could work in reverse: if you force everyone who sees the house on Sunday to submit an offer by Monday, you might pressure people into submitting an offer, which they would think twice about if they saw the house again and thought about it. My sense is that this doesn't happen as much as the opposite (pressure turns people off) because this is such an enormously impactful decision.

I've heard of a fair amount of buyer's remorse resulting from these pressured weekend bidding wars. It is simply not good for buyers.

[mneumann]

My wife goes to talk to the buyers

In one case she made friends with another mom with kids the same age as ours that didn't even buy the house, but moved on about a mile away.

In other cases she's talked to the people who ended up buying the house, told them about the neighborhood and such. And has known who the new neighbors will be before they move in.

Neighborhood is fairly close knit with women's groups and block parties and such, so its never really seemed odd that she does it. Pretty sure others in the area do too, not my thing though.

[rogue_economist]

Photos, no matter what quantity or quality, are no substitute for an open house where you can get inside and really look the place over.