It’s true that most open houses held by my fellow real estate agents and myself do not directly lead to the sale of that listing, and some sellers will request no open houses be held. They have good reasons, too.
Myself, I’ve always said that you never know what will sell a house, so just try everything. And yes, I have sold homes to someone who came to that home’s open house. I also recognize that they came to the open house because they liked something about it and if there hadn’t been an open house, they might have called for a showing. It’s also true that some people come to an open house because it said “open, come in,” and they weren’t thinking about buying a home until they fell in love with that home at the open house.
Open houses can indeed be a helpful tool when selling a home, although their effectiveness can depend on various factors such as the local real estate market, the property itself, and the strategies employed by the real estate agent.
Here are some ways that open houses might benefit the seller:
1. Visibility: Open houses can increase the visibility of a home to potential buyers. They are typically advertised online, on yard signs, and in local newspapers, which can attract more attention to the listing.
2. Accessibility: Open houses make it easy for potential buyers to view the home without needing to schedule a private showing. This can attract more casual or early-stage buyers who might not have otherwise seen the home.
3. Pressure-free environment: Unlike private showings, open houses provide a less pressurized environment for potential buyers to view the home, which might make them more comfortable and more open to considering the property.
4. Immediate feedback: Open houses can provide sellers and their agents with immediate feedback about the home, which can be used to make adjustments to the listing price or presentation.
However, it’s also important to note that open houses come with some downsides:
1. Security concerns: Open houses can potentially attract people with ill intentions, leading to theft or vandalism. In 20 years, however, I haven’t had a single seller tell me something was missing after an open house, although I’ve heard or read about such incidents.
2. Lookie loos: Many people who attend open houses may be neighbors, curious browsers, or individuals who are not serious about or ready to purchase a property. I welcome them, however, because they might tell others about the listing.
3. Low success rate: Despite the visibility open houses can provide, the percentage of homes sold directly through an open house is low compared to other methods of marketing a home, such as online listings or private showings.
Lastly, there’s what I call the laziness factor. It takes effort to hold an open house, and some agents don’t want to make the effort. And they justify not making that effort by saying that open houses don’t sell homes, buying into their sellers’ negative feeling about open houses.
Open houses are a little like floor duty. We ask our broker associates to sign up for floor duty, even though it can be as unproductive as an open house. My approach is to think of it as work time. I take my laptop and get a lot of work done, so really it’s not a waste of time, even if no buyers show up. If a visitor interrupts my work time, great!
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