Do Open Houses Sell Houses? Should I Have an Open House to Sell My Home?

Who Is Showing Up At Your Open Houses?

Every weekend there are hundreds and hundreds of open house in Middlesex and Essex Counties.  But who is attending these open houses?

The Nosy Neighbor

Oh, I don’t want to sign in…. I am just a neighbor I wanted to see what they did with their kitchen….  

As real estate agents, we hear this all the time.  Just a curiosity neighbor that probably rarely speaks to you.

They are the worst type of open house visitor because they want to share how their home may be better, what’s wrong with the neighborhood and what neighbors are bringing down the neighborhood….

And on top of it they are saying this in earshot of other open house attendees.

Time Killers

These are just the ones stopping by because they saw the sign and they had some time to kill on their way to a family barbecue. They were just curious.

Or, you hear, “I have always admired this house; I know I can’t afford it, but I just needed to peak.”

The time killer wants to clarify that they have a house they don’t plan on selling or buying but were driving by and wanted to take a quick look.

Future Buyers

So, in this case study, this was the largest group that showed up at the open houses

Buyers that still need to be pre-approved by a bank to buy.  They are deciding whether they want to start the journey to buy a home.

Yes, they may have the want to buy, but they are not physically able to believe in the next 60 days. 

That certainly does not do my seller any good! They are just using your house for research.

The Unqualified Buyer

This happens to me often… I have a couple who go through an open house; they seem to love it.  So I ask them, are you ready to put in an offer?

Their response is how much is it?  Yep, it’s about a hundred thousand over what they can afford.  Of course, they love it, its way better than the homes in their actual price range.

They were just out at other open houses and saw the sign so they thought they would stop….. bummer.

Just Entering The Market

Nothing is worse than hearing a buyer is ready to buy, only to find out this is the first house they have looked at at the start of purchasing a home.  

Open houses are an excellent way for buyers just starting to get a scope of communities and homes that may be available to them.  But they are at the start of the buying cycle and have a ways to go before they are ready to pull the trigger. There is a process a home buyer needs to go through before they are prepared to buy.  At the start of the process they aren’t ready.

Maybe if you are fortunate they will fall in love with your house and buy it without ever looking at other homes!  Probably not.

The Dreamer

The dreamer wants to own a home but they are years away from buying a house or may never buy one.

When talking to them, they reveal that serious work needs to be done on their credit score or they need to save for a down payment.  They are not in a position to buy anything soon.  But they want to see what’s out there for when they are ready.

A Potential Buyer

There is a chance a bona fide buyer can come through.  But in my experience, they are the smallest segment of people who show up to an open house. 

Serious buyers are working with agents and scheduling showings when a home comes on the market.  They are not waiting for an open house.

Think About It…

We are advertising to the world; come on, stop by.  Our house is open to anyone!  

The only requirement to come to your open house is they can get through the front door’s threshold. Anybody, and I mean anyone, can go and wander through your home.   You will get a variety of attendees with varying motivations for attending, some benign, others insidious.

Of all the years doing open houses, it amazes me how many people try to avoid or refrain from signing in. I am sorry, but a seller has the right to know who is coming into their home.

Open houses are a perfect venue to remain anonymous or hide your true motivation for being there.

There is a time and a place for an open house.  But by no means should an open house make up an entire marketing plan to get your house sold.

Open House Can Be Inconvenient For Sellers

Often, I get asked by home sellers if they have to do open houses.  They see it as an inconvenience.  

A seller may spend hours preparing for an open house.  And on top of it, they need to pack up the family and disappear for a few hours on their valuable weekend time.

An open house may not be worth the effort given safety and theft concerns and the type of attendees that may come through the door.

Safety Concerns of Open Houses

Of course, safety should be a concern as in recent years, we have read about burglars using open houses to case a home or an agent has been killed at an open house.  Here in our backyard, there has been a rise in cases of  “open house attendees” searching for drugs during their visit.

An open house can also be ripe for identity theft.  Important documents, bills, statements and more should be out of sight and securely put away.

Your agent should have safety measures in place to protect themselves.  As a homeowner, remove all valuables and medications from your home during open houses to prevent theft.

Statistically, Do Homes Sell At Open Houses?

First, out of the 22+ years I have been practicing real estate,  I have only sold two houses as a direct result of open houses.  Nationally, less than 2-3% of the homes sold directly result from an open house.

In this day and age, buyers rely heavily on the internet to find their new homes.  Then, they contact an agent to schedule a personal showing.

I Want Buyers to Schedule Showings With Their Agents

I want real estate agents representing buyers, to show my listings to prospective buyers.  Why?

Most buyers have developed a rapport with their buyer’s agent.  I want them to view the home with the guidance of their agent.  Their own buyer’s agent knows what is important to them and what is not. An experienced agent will also be familiar with your home’s value in the marketplace and present that to their client.

If the home is suitable for the buyer, they will help them see the value in the house and encourage them to submit an offer.

My buyers don’t go to open houses.  They call me so I can schedule a personal showing for them at their convenience, where we can openly discuss the pros and cons of a home.   My buyers trust and value my opinion.

What Others Have to Say About Open Houses

• Kyle Hiscock – Rochester NY REALTOR Kyle feels open houses are old fashion and present more negatives than positive.  With the internet most buyers are doing their home shopping online from the comfort of their home.
• Bill Gassett – Hopkinton MA REALTOR Bill puts it so bluntly as it is ridiculous to think a ready and willing buyer is going to pass on your house because you didn’t have an open house.  NO!  They are going to call their agent and schedule a showing.
• Debbie Drummond- Las Vegas Realtor The only value in an open house is to the REALTOR hosting the open house.  It promotes him or her and produces future leads.
• Dustin Brohm- Salt Lake City UT REALTOR Dustin provides a quick video on why open houses don’t sell homes and how agents really use them to market themselves.
• Marketwatch Marketwatch points out that open houses are archaic with the advancements of the internet.

Who Benefits Most From an Open House?

Weekend after weekend you see hundreds of open house signs, so you think they must work….  You are trained to believe they work.  

They do…. for the real estate agent!  Open houses make an agent visible to the community.  They get to put up their signs, giving people the notion they are busy.  Open houses also put the agent in touch with many future buyers and sellers it is sound lead generation for many real estate agents.

Agents who like to do open houses do so to secure more business for themselves.

An agent who does weekend after weekend of open houses at your home probably is not providing a rich marketing plan using multiple marketing channels.  Open houses are a visible activity you can see. And they can say they are spending time trying to sell your home. But could their time be better spent? Absolutely.