There is a debate among professionals as to whether open houses are an effective method of marketing a home.

The Statistic

Many opposed to open houses quote a statistic from the NAR that reported where a buyer found the home they purchased.  Less than 1% said that it was from the open house.

A Closer Look

The funny thing about statistics is they seem so concrete and conclusive but are often very misleading.  This statistic must have a closer examination.  On it’s face it seems like it would be a waste of time to do an open house, but let’s dig deeper into the context and see why this 1% may not be telling the whole story.  If you had the most effective marketing method available to market a home and zero agents used that method then what do you believe would be the percentage of buyers who found their home by this method.  That is right!  0%.  You see how the numbers may not tell the whole truth.

The Context

I did a quick search of the number of single family homes currently on the market.  The number is 9,430.  Then I looked to see how many open houses there would be this Sunday.  The number for that is 178.  So if you take 178 from 9,430 you get 9,252 homes that are currently for sale that will not be having open houses.  Out of those 9,252 homes being marketed without open houses, how many do you think will have a buyer that found it via an open house.  That’s right 0%.  However the remaining 2% of the homes that are being marketed with open houses will represent according to the NAR statistic 1% of the home sales.  Looking at the last month we have statistics for there were 1138 sales.  1% of that is 11.38 sales.  So there are 178 homes being marketed with open houses that will represent 11.38 of the sales for this month.  Do open houses still look like a bad idea?  Following these numbers one could conclude that open houses will be successful in selling the home 6.4%(11.38/178) of the time!  However you would again be concluding wrong.  My point is statistics are only useful in pointing us towards an idea.  To make a conclusion you must carefully construct an experiment, control variables and follow the scientific method before you can even begin to draw the overreaching conclusions that some agents are trying to draw.

The Opinion

My opinion is that open houses are still a viable method of marketing homes.  Of course all open houses are not created equal.  Certain homes are better for open houses than others.  The advertising of an open house differs depending on the house.  Then there are differences in the presentation and skills of the agents doing the open house.  I think it is hard to speak specifically of the method without considering and defining the execution of the open house.  If the house is in poor condition, in a low traffic area, the open house is not advertised, the agent does not present well and does not engage the visitors then I agree that it may be of little to no use.  But with the right home, I have had an open house, executed properly, create over 100 visitors and result in the Sale of that home.  So, in conclusion I think instead of prematurely writing off an effective method of selling a home I think the professionals should instead focus their energy on identifying the right home for the open house, the right time for the open house, the right advertising for the open house and the right execution for an effective open house.

Following is the information I found posted at IRS.gov.  As you can see in certain cases Military Buyers may still be able to get the tax credit.

First-Time Homebuyer Credit: Members of the Military and Certain Other Federal Employees

The Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law: Extends deadlines for purchasing and closing on a home. Authorizes the credit for long-time homeowners buying a replacement principal residence. Raises the income limitations for homeowners claiming the credit. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived  in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009. Several new restrictions apply to homes purchased after Nov. 6, 2009. Purchasers must attach a properly executed settlement statement to their return. No credit is available if the purchase price of the home exceeds $800,000. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement. A dependent is not eligible for the credit. The new law gives the IRS broader authority to deny first-time homebuyer credit claims, without having to first audit a taxpayer’s return. Known as math error authority, this authority applies, retroactively, to credits claimed on original and amended 2008 returns, as well as to claims yet to be filed. Additionally, there are new benefits for members of the military and certain other federal employees: Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community. This relief applies where a home is sold or stops being the taxpayer’s principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual’s spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.

The following was sent to me by Brandon Fischer of VA Benefit Blog .com

Choosing the Right Home Loan Program

The average price of a home in Oklahoma ranges from $150,000 to $200,000 and varies in type from highly urban to rural, and for those seeking to purchase a home in Oklahoma there are a variety of government lending options available. The most popular government lending programs include the FHA, VA, and USDA loan programs and all three offer flexible loan terms and eligibility requirements with each program offering their own unique set of advantages and disadvantages.

The VA Home Loan

The VA home loan has helped over 18 million active duty and veteran service members achieve homeownership. Because the VA home loan program is partially backed by the Department of Veteran Affairs, the VA home loan program is able to offer flexible and competitive loan terms to eligible veterans and active duty service members regardless of credit history. Other benefits of the VA loan program include:

• No down payment required
• Mortgage insurance not required
• flexible debt-to-income ratios

In order to apply for a VA home loan, potential borrowers should meet one of the following initial requirements:

• Have served 181 days on active duty or 3 months during war time
• Or have served 6 years in the National Guard or Reserves
• Or be the spouse of a service member killed in action
• Have a Certificate of Eligibility

The FHA Loan

For first time homebuyers in Oklahoma, the FHA home loan program is available, and additionally contains multiple financing options for borrowers in different phases of the homeownership process. Borrowers can buy their first home, renovate a fixer-upper, or update their current home to meet energy efficient standards with an FHA home loan, and can even purchase manufactured housing or a mobile home. In addition to multiple financing options, FHA loans offer benefits such as:

• 3.5% down payment
• low closing costs
• down payments can be made in the form of a gift

To be eligible for an FHA loan, potential borrowers should meet most of the following:

• two years of consistent employment and steady or increasing income
• a minimum credit score of 620
• a clean credit history after filing for foreclosure or bankruptcy

The USDA Loan

For homebuyers more interested in the rural real estate areas of Oklahoma, the USDA loan home loan  is generally the most beneficial. The USDA’s Department of Rural Development offers two types of home loans to potential borrowers:  a Guaranteed Housing Loan and the Direct Housing loan for lower income households, and both are designed to optimize rural living. USDA home loan benefits include:

• Zero down payment required
• No loan limit
• No mortgage insurance required

In order to be considered eligible for a USDA home loan, potential borrowers should meet the following requirements:

• have a consistent income
• be a U.S citizen
• have an income that is within the median household income for the area

The VA, FHA, and USDA home loan programs do have flexible eligibility requirements, however most approved lenders will usually require a credit score of at least 620 to secure financing. Those with an imperfect credit history who are interested in a home loan are still encouraged to apply as each program has approved even those with a history of bankruptcy and foreclosure in the past.

Fall 2010 Home Tour and other Neighborhood Events List

The Updated List

Linwood Place Home Tour

September 26^th

1 – 5 pm

For more information go to: www.linwoodplace.org

Heritage Hills Historic Homes and Gardens Tour

November 9^th & 10^th

12 – 5 pm

For more information go to: www.heritagehills.org

Plaza District Festival

October 9^th

Noon – 10 pm

Features performing and visual arts, interactive art activities and live music.

For more information go to: www.plazadistrictfestival.com

Trolley Track Run

October 23^rd

Kid’s fun run, 6:30 pm; 5K race, 7:00 pm

For more information call 948-7295 or email: ktwebb1@cox.net.

Mesta Festa

October 9^th

Perle Mesta Park

For more information go to: www.mestapark.org

Gatewood Home Tour

October 31, 2010

Noon – 5 pm

For more information go to: www.gatewoodokc.com

Mesta Park Holiday Home Tour

December 4^th & 5^th

For more information go to: www.mestapark.org

Thanks to Georgie Rasco and Jennifer Meckling of Neighborhood Alliance for helping me fill in the Missing Dates.



Based on information provided to and compiled by MLSGateway.com, Inc. covering a period 2004 through 2010 MLSGateway.com, Inc. does not guarantee or is in any way responsible for its accuracy.

Glorimar Boyd is the newest member of the Paula And Company Realtors Family.  Her hometown is Bayamon, Puerto Rico.  She attended Hawaii Pacific University where she obtained a bachelors degree in International Business.  She then was hired by the Army and Air Force Exchange Services(AAFES) as a manager trainee.  She lived in various places around the United States including Sacramento California, Leavenworth Kansas and Arlington Texas before making her home in Mustang, Oklahoma.  With Glorimar’s passion for Real Estate and Customer Service it is no surprise that she has found success as a Realtor.  Welcome to the team Glorimar!

Interest Rates are currently hovering between 4.25% and 4.5%.  If you buy a $350,000.00 house today with a 4.25% rate and 20% down your payment on a 30 year fixed rate mortgage would be 1377.43 per month(Principal and Interest).  Add in taxes at $3000.00 per year and insurance at $1600.00 per year and your total payment would be $1760.77.  If you are interested in what that will buy you click here.