"Th-th-th-that's All Folks!"

See you in 2011!
Even before today's snow, I was wavering about holding a Broker Open tomorrow for my new listing in Minnetonka.

According to my Office Administrator ("OA"), I would have been the only Realtor in the Edina Realty-City Lakes office on tour (vs. the average 4-6 new listings -- and as many as 10 -- on a busier day).

And that was on the heels of my very sparsely attended Open House in Golden Valley yesterday.

So, that's it for Open House and Broker Tours for 2010!

Don't worry, I'm not done for the year, though.

I'm still working with 3 Buyers, and getting new listings ready for after the first.

Counting Open House Traffic

"Party of Five" -- Or Twelve

If a dozen people came through your Realtor's Sunday open house, would that qualify as good traffic?

It all depends.

If the 12 people were the couple contemplating buying, 4 of their friends, 2 siblings, and both sets of parents . . . I'd say, "no," not really (and yes, I actually had such a group come through one of my open houses once).

On the other hand, if twelve individual Buyers came through, that would qualify as good traffic.

Which is why Realtors will typically quantify open house traffic in terms of number of discrete parties through -- not number of bodies.

Sunday Open Houses & "Minnesota Nice"

I'll Take That as a "No"

"Minnesota Nice" plays out in a lot of funny ways in real estate.

Like at one of my open houses this weekend.

I greeted one woman at the front door, directed her to the literature and disclosures on the dining room table, and invited her to look around.

Ten minutes later, as she was leaving, I asked her what she thought.

"Very nice, lots of space," she answered. "Let me go get my husband" (he was parked in front with their dog).

As I talked to another open house visitor, I watched out of the corner of my eye as they promptly drove off.

Why I Call My Front Desk at 2:45 p.m Sunday

Gauging Open House Traffic

I don't know about other Realtors, but whenever I host a Sunday open house (I've been doing Sat./Sun. double-headers lately), I like to call my front desk to find out how busy it's been.

So, I try to check in around 2:45 p.m., before my front desk closes at 3 p.m.

Here's how I'd characterize the possibilities, from most to least busy:

"Jumping"

"Busy"

"Steady"

"Slow"

"Dead"

For the record, yesterday's activity was somewhere between "Slow" and "Dead" -- about par for a hot, late Summer day.

Which is still important to know, because it's one more piece of information about how the market perceives your client's property.

Establishing a Baseline

Obviously, the best combination is to have non-stop traffic on an otherwise slow day.

And any one open house hardly makes for a statistically valid sample. (First open's typically draw disproportionate, "neighbor-heavy" crowds; ditto for an open house after a long interval without.)

However, if your open houses are consistently moribund when it's busy elsewhere, it's a (loud) signal that something needs addressing.

If the home has been well-staged, photographed, networked, and marketed . . . that "something" is often price.

P.S.: And no, that's not the City Lakes' front desk pictured above -- it's a stock photo I found online.

First Open Near Oakridge 1- 3 p.m. Today

Where I'm Spending Sunday Afternoon

Where: 601 Drillane Rd (just west of 169, between Minnetonka Blvd. and Highway 7) in Hopkins
What: 4 BR/2BA "California Rambler" with over 1,800 FSF on one level -- all on a gorgeous .55 acre lot
How much: $289,900
When: new on market!

Please join me in the stunning, 3-Season porch of my new listing at 601 Drillane Road in Hopkins.

I'll have homemade lemonade with!

The rest of the home is available for viewing, too. :)

World Soccer Sunday?

Pre-empted by the Finals

It's hard to extrapolate from a sample size of two -- but "two" is exactly the number parties who came through my Golden Valley open house this afternoon.

In both cases, they were wives accompanied by small kids (in one case, a six month-old in a car seat who definitely did not want to be watched by a 50 year-old Realtor while her Mom was elsewhere in the house).

Where were the husbands?

At home, watching the World Cup Soccer final between Spain and The Netherlands.

P.S.: adding more evidence to this theory: my front desk reported that this afternoon was especially quiet, with only a handful of calls.

"We-Might-as-Well" Remodeling

How Budgets Get Blown

I ran into someone at my open house last Sunday who explained how their remodeling budget doubled: as the project unfolded and the contractor(s) suggested ways to improve the original plans -- as well as correct problems that became apparent once the walls were opened up -- the owners repeatedly found themselves saying, "Might as well."

That's why remodeling veterans advise "doubling the timetable and tripling the budget" (or is it the other way around?).

On the plus side, I have never seen so many contractors hungry for work, and bidding jobs aggressively.

It's also the case that homes needing major remodeling are deeply discounted in today's market.

Gauging Sunday Open House Traffic

The Sunday Times vs. Crossword Puzzles

No, the picture (at right) wasn't the line to get into my (first) Sunday open house at 2700 Chowen Ave. South last weekend.

But it felt like it.

Unlike most Realtors, I am not a stickler for sign-in sheets, or otherwise "taking attendance" at open houses I host.

That's because, in my experience, if you force people to leave contact information, they will -- it just might not be correct.

It's also the case that people who want to be in touch with you, will; if they have a sincere interest in the home you're selling, the area, or have a real estate-related question, they'll naturally exchange contact info with you.

So how do I gauge Sunday open house traffic?

By how many sections of the Sunday New York Times I get through during the two hour open (I have it along for any lulls; I'm not into crossword puzzles).

At Chowen last Sunday, I barely read two paragraphs from one Op-Ed piece.

Real Estate Myth #37: Sunday Open Houses

"Open House Available For a Terrific Listing That Always Gets Great Traffic"

One of the more durable myths out there is why Realtors do Sunday open houses: many clients (and prospective clients) seem to believe that the primary motivation isn't to sell the client's home, but for the hosting Realtor to troll for future business and ultimately sell other homes, down the road.

The reality is a bit different.

If Sunday open houses were such a great way to pick up clients, you'd see more listing agents doing them.

In fact, the majority of listing agents avoid doing them.

Instead, they try to line up replacements -- typically, newbie Realtors -- by dangling carrots like this: 'Open house available this Sunday for a terrific listing that always gets great traffic.'

Just once I'd like to see a listing agent level with would-be pinch hitters with a hook like this: 'open house available this Sunday for a not-so-appealing home in an out-of-the way location that's already been for sale for 8 months, is (still) priced above market, and may get 3-4 people through -- if you're lucky.'

Notoriously Low Yield

What the (experienced) listing agents know that the newbie's don't is the following:

--Most people coming through open houses aren't interested in buying a home at all.

They're just curious about what the home looks like inside; are interested in interior decorating ideas; want to see what prevailing home prices are so they know how much their home is worth. Etc., etc.

--The distinct minority of prospective Buyers who are serious are invariably already working with a Realtor. Which means they're strictly off-limits.

--The remainder of Sunday open house prospects -- people who maybe, kind-of are looking -- usually are characterized by one (or more) of the following: a) they can't afford the house (or any house); their timetable is next year (or century); they have no idea what they're looking for, at what price range, or where.

So, yes, a new Realtor who has time on their hands and plenty of patience is welcome to follow up with such prospects -- assuming they leave valid contact info -- in the hopes they'll eventually buy something.

Or not.

The Case for Open Houses

All of which begs the obvious question: if open houses have such a poor track record, why do them at all?

For two reasons:

One. As a convenience to serious, already-represented Buyers, who are typically off work on Sunday afternoon and can cover more ground going through open's (vs. having their agents set up private showings during the week).

Two. Because, while the odds may be low . . . you never know. (See, "The (Mythical?) Serendipitous Buyer").

In truth, the vast majority of things Realtors do to market homes -- at least individually -- have a low probability of success.

So, the odds of a private showing leading to a consummated transaction are less than 10%; the odds of exposure at a Broker Open (Tuesdays) leading to a sale perhaps only a little better.

Ditto for blast emails to neighborhood Realtors; direct mailings; high-end photography and literature; "plugging" listings at various Realtor meetings, etc.

But therein lies the rub.

Precisely because you don't know which marketing effort will ultimately sell your client's home . . . a good Realtor does all of them.

P.S.: the foregoing recalls the marketing director of a Fortune 500 company who laments that she knows she's she's wasting half her marketing budget -- she just doesn't know which half.

Big Weekend for Country Club Open Houses

Country Club Extravaganza

Country Club is one of the premiere neighborhoods in Edina -- indeed, in the entire Twin Cities.

Mostly built in the '20's and '30's, Country Club homes are historically registered, and include some of the most impressive Tudors and Colonials around.

There are currently 44 Country Club homes on the market ranging in price from around $600k (smaller homes needing lots of work) to more than $4 million; more than half will be open this Sunday (that's quite unusual for upper bracket homes).

One example: 4620 Drexel Avenue South (pictured above).

Built in 1928, this Tudor has been completely renovated, and has five Bedrooms and Baths, and 5,600 FSF. List price is $1.75M.

If you are looking for a great home in a fabulous neighborhood, but didn't think you could afford Country Club, come take a look.

You might just be surprised!

Open Houses at Odd Hours

"Open Thursday From 5 p.m to 7 p.m"

Most Realtors hold open houses on weekend afternoons.

In fact, I'd guess that more than half of all open houses are from 1 p.m. to 3 p.m. on Sundays (Vikings games in Fall excepted).

There's certainly logic to that: that's when most people are off work, and free to go house shopping.

And once there's a default time, it becomes self-reinforcing, because everyone wants to "piggyback" off the traffic being generated by the other open houses.

However, there's a case to be made for changing that up, at least occasionally.

I heard a story just this week about a Realtor who held an open house on a Thursday evening -- and got a Buyer!

The back story is, the Buyer has a lake cabin they go to every weekend -- no Sunday open houses -- and just happened to see the open house sign.

Dramatic Price Cut! Open Today

Deceptive Curb Appeal

Where: 1340 Fairlawn Way in Golden Valley's South Tyrol Hills
What: 4 BR/3BA '50's split level with almost 3,600 FSF; rock-solid, nicely updated!
Who: listed (and hosted) by . . . yours truly
When: 12:30 p.m to 2:30 p.m. this Sunday (4/18)
How much: list price -- $411,500 (just reduced from $434,900)

This is a lot of house, in a great neighborhood. And for anyone stuck in the maw of the Crosstown Project's daily gridlock -- a blissfully short commute to downtown Minneapolis (about 7 minutes, tops).

I hate to use the term, "not a drive by," but . . . it isn't. (Realtors use the term when the curb appeal doesn't do the interior justice.)

In particular, the almost-600 square foot Great Room (pictured above) features a Fireplace with granite surround, skylights, and a vaulted ceiling.

Hope to see you!

Biggest Sunday of the Year? Today!

Open Houses Galore

Clients often ask if a particular Sunday is a good time to hold an open.

I don't forecast home prices or interest rates, but I'm going to go on record with this prediction: today, April 11, will be the busiest day of the year for open houses (the "retail" kind; broker opens -- the "wholesale" version -- are held each Tuesday).

I can think of at least five reasons for that:

One. Last weekend, Easter, was an off-day. Today will benefit from pent-up demand.

Two. The tax credit for Buyers expires April 30.

Three. Realtors like to hold opens on days when they know there will be lots of other opens; that way, they can piggyback on all the other marketing out there (see Edina Realty's ad at upper right).

Four. At least in Minnesota, the Spring market doesn't start in Spring, it starts in February, right after the Super Bowl. So, we're now well past the mid-point.

"Crunch Time"

Buyers of family homes in particular like to make their purchases by Memorial Day, so they have time to close by mid-Summer and be unpacked and in place for the school year.

Sellers of family homes know that, too, which is why now is crunch time for doing a deal.

Five. Nice weather!

Personally, I'll be doing an open house double-header.

Please stop by my open at 4121 W. 28th St. (28h and Inglewood) in St. Louis Park's Fern Hill neighborhood from 12:30-2:30 p.m.

Or, come by my open at 1340 Fairlawn Way in Golden Valley from 3-4:30 p.m.

Psst!! Want a Short Commute?

Open This Sunday 3:00 - 4:30 p.m.

Where: 1340 Fairlawn Way in Golden Valley's South Tyrol Hills

What: 4 BR/3BA '50's split level with almost 3,600 FSF; rock-solid, nicely updated!

Who: listed (and hosted) by . . . yours truly

When: 3 p.m to 4:30 p.m. this Sunday (4/11)

How much: list price -- $434,900

This is a lot of house, in a great neighborhood. And for anyone stuck in the maw of the Crosstown Project's daily gridlock -- a blissfully short commute to downtown Minneapolis (about 7 minutes, tops).

I hate to use the term, "not a drive by," but . . . it isn't. (Realtors use the term when the curb appeal doesn't do the interior justice.)

In particular, the almost-600 square foot Great Room features a Fireplace with granite surround, skylights, and a vaulted ceiling.

Hope to see you Sunday!

Open Houses on Easter Sunday

The Case For -- and Against

In a microcosm, the considerations for doing an open house on Easter Sunday are the same as for deciding whether to list a home during a traditionally slow time of the year (like around the holidays).

Here's how the arguments shape up:

Pros:

--Not much competition from other open houses, so the ones that are open stand out more.
--Quality over quantity: fewer Buyers are out on Easter Sunday, but the ones who are, are disproportionately serious, motivated, etc.
--The same things that make a home welcoming for company ("dressed up," nice smells, seasonal touches) impress Buyers, too.

Cons:

--Fewer open houses on Easter Sunday, which (further) depresses traffic (like car dealerships that cluster in the same area, having lots of nearby open houses helps attract Buyers).
--Intrusion on family time, privacy. Opening one's home to the public -- and doing all the cleaning and prep necessary ahead of that -- isn't necessarily how people want to spend Easter (on the plus side, it's a lot easier to kill a few hours away from home now than in frigid December).

In addition to the foregoing, one other factor that's relevant, at least at the margin: real estate offices are all closed.

That means Realtors won't be able to set up any showings to take their Buyers through, people lost on the way to an open can't call to get directions, etc.

So, which way do the foregoing factors tilt?

For most Sellers (and their Realtors), probably against.

That's especially the case given that there's an ideal day to hold an open house so close to Easter Sunday: one week later, when there's predictably a nice pop of pent-up Spring demand.

Open House Sunday 12:30 p.m. - 2:30 p.m.

Gorgeous Fern Hill Colonial

When: Sunday (3/14); 12:30 p.m. to 2:30 p.m.

Where: 4121 W. 28th St (28th & Inglewood Ave. So.), in St. Louis Park's Fern Hill neighborhood

What: 4 Bedrooms (all up), 3 Bath 1937 Colonial with 3,000 square feet

How much: $579,900

Who: listed by Ross Kaplan, Edina Realty City Lakes

This Fern Hill Colonial has a lot going for it: one of the most beautiful Family Rooms I've been in -- at any price point; four Bedrooms up; formal Living and Dining Rooms; and a ton of charm and character throughout.

Oh, yes: and a heated, 3-car garage!

Don't miss the Gazebo in back.

Please call directly (612-925-7701) to set up a private showing if tomorrow doesn't work . . .

Gauging Sunday Open Traffic

Actions Speak Louder Than Words

What does a Realtor with some spare time in a new city do on a Sunday afternoon?

Check out some open houses!

In fact, I just had time to go through a few, but here are a couple stray observations:

--The Southwestern equivalent to the Midwestern "ranch" or "rambler" is a "villa-style" one story (Spanish architecture, tile roof, open floor plan, lots of patio's and sliding doors, etc.).

However, with no basement or upper level, a Scottsdale home (pictured above) with 4,000 finished square feet actually has a foundation size of . . . . 4,000 square feet!

By contrast, in the Midwest, a typical 4,000 square foot home would be a two-story, with perhaps a 1,700 square foot foundation.

The much more vertical floor plan would then typically have about 800 FSF in the lower level, 1,700 on the main, and the remaining 1,500 up.

--How do you tell if the agent hosting the open is accurately reporting traffic?

Put it this way: if the open is advertised as 2 p.m. to 4 p.m., and you arrive at 3:40 p.m. to find the Realtor hitting all the lights . . . it wasn't great, no matter what they say.

That's especially the case if they don't appear to be especially stressed or rushing somewhere -- in other words, you can rule out an emergency for their having to leave early.

South Tyrol Open House -- Stop By!

Where: 1340 Fairlawn Way in Golden Valley's South Tyrol Hills
What: 4 BR/3BA mid-century split level with almost 3,600 FSF
Who: listed (and hosted) by . . . yours truly
When: 1 p.m to 3 p.m today
How much: list price -- $444,900

This is a lot of house, in a great neighborhood.

I hate to use the term, "not a drive by," but . . . it isn't.

(Realtors use the term when the curb appeal doesn't do the interior justice.)

Weather (& Buyer Traffic) Patterns

The Car Wash Model

No, it's not good for showings, or broker and Sunday open house traffic, when the weather is especially frigid, or a snowstorm temporarily shuts things down. In other words . . . today (at least in the Twin Cities).

But experienced Realtors know that it doesn't really matter, for two reasons:

One. It all averages out.

Two. Concentrated activity is better than diffuse activity.

What do I mean by that?

If 20 people are going to come through my open house, my druthers would be for them to all show up at the same time.

That way, there's a buzz, and buzz heightens interest. Heightened interest, of course . . . . leads to offers!

Think of it as the "car wash" model: the longer the cold snap, the longer the line of cars -- er, prospective buyers -- when there's a thaw.

P.S.: the same principle helps explain why FSBO's sell their homes for much less than Realtors do (statistics suggest about 15%). Instead of "collecting" prospects' names and concentrating interest ahead of their market debut, they deal with them one at a time, diffusing interest.

Building prospect awareness and anticipation is precisely why good Realtors spend a lot of time and energy promoting their "pre-lists."

Marketing to Neighbors

Open Houses and "Nosy Neighbors"

When I hold Sunday open houses, one of my top, target audiences -- at least the first weekend -- are the neighbors.

Not because a neighbor is likely to buy the home, but because they might know someone who will. Sometimes, an especially motivated neighbor will even recruit a Buyer.

Even if neither is true, there are still other reasons to enlist the neighbors' help.

I can think of two, really good ones:

One. They're more credible selling the neighborhood to prospective Buyers. Think about it -- who would you more readily believe about locals schools, restaurants, etc., someone who lives on the block, or a Realtor trying to sell the home?

I've hosted more than a few open houses when a neighbor will literally interrupt me answering a question about nearby parks, kids on the block, etc. and give their own, enthusiastic and informed answer.

Two. Neighbors help fill up the open house and create "buzz."

The neighbors know who they are, and you know who they are (they always tell you) . . . . but prospective Buyers don't (that is, unless they start fielding questions, per above).

All prospective Buyers know is that the the house is full of people. If they like the house, their natural inclination is to think that the other people going through are prospective Buyers, too.

That kind of nervousness makes people hurry up and write offers.