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

do open houses sell houses? Open houses are a longstanding tradition in the real estate industry, are just one strategy of many for selling homes. An open house is designed to present a property in the most favorable light, allowing potential buyers to envision their future in the space. But they can be a major hassle for some home sellers.  Leaving them with the thought, “Should I have an open house to sell my home?”

This critical question is the effectiveness of open houses in selling the home.  Do open houses sell homes?

To address this, it is essential to look over the function of the open house and who is walking through the door of your open house.

Some sellers cringe at the thought of preparing for an open house.  Getting the place at its best, packing up the kids and the dog for a few hours, finding something to do, and last but not least, allowing complete strangers to run through the house. Other sellers think an open house is what will sell their home, especially after weeks of no offers coming in.

This article will delve into the pros and cons of hosting an open house and whether you should have an open house to sell your home.

Open House Case Study- Do Open Houses Sell Houses?

I did two back-to-back open houses on a listing of mine, one weekend, one on Saturday, and one on Sunday.  I knew I would write this article, so I probed the visitors to discover their true motivation for visiting the open house.

In two open houses, I had 15 groups of visitors.

Four came with their agents.  Great!! But guess what? Regardless of whether there was an open house, they would have scheduled a showing to view the home anyway. 

Out of the other 11 groups that showed, everyone was looking to buy a home or could close on that particular home in the next 30-60 days.

None of this surprised me.  I have seen it for years, spending many weekends doing open houses.  Many attendees are not there to buy a house. 

Unfortunately, sellers get so excited when they see 5, 6, 7 or more groups of people coming through.  In reality, maybe one or two might have been at the open house to see if it was a potential purchase.

That begs the question, who is showing up at open houses and do open houses really sell homes?

What Is The Purpose of an Open House?

First, let’s look at the purpose of an open house.

On the surface, an open house is a general invitation for anyone to view a home.  ANYONE!! Great, you get eyes on your home; what can it hurt?

But the point is not to get someone to view your home.  The point is to sell your home!!  You want a particular person to view your home.  The buyers who come through the door must be qualified to close on your home in 30-60 days.  

Not a curious neighbor and not a buyer researching for a purchase one year from now or someone looking to kill some time.

All too often, open house visitors are not there for the reason home sellers have hoped for.  And, as shown in the case study, most are not there to buy a 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.

do open houses sell homes?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.

WHO IS SHOWING UP AT YOUR

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.

FAQs About Hosting An Open House

Are open houses necessary to sell my house?

No, open houses are not necessary to sell your home. Though it is one more means of marketing a home, there are downsides to an open house, and their effectiveness can be limited.

Is there a privacy concern with open houses?

Absolutely. Not only are there privacy concerns, there are safety concerns as well. Some attendees may have motives that include theft, seeking drugs, kidnapping and more.... Open houses have come under scrutiny over some high profiles crimes.

How much time goes into hosting an open house?

Significant time and energy can go into an open house on the seller's part. You want to ensure your house is show-ready to take full advantage of the opportunity. Additionally, you need to pack up the family and find something to do for a few hours on prime weekend afternoons.

Do open houses guarantee a sale and higher offers?

No open houses don't guarantee a sale or increased sales price. It is one small aspect of selling making a home and other

Are open houses effective in securing a buyer and selling a house?

Not necessarily. Open houses tend to attract a lot of "attendees" with no real intent to buy. The effectiveness can vary from region to region. The events are a throwback from before the internet that remains popular. But, there are far more effective methods in getting your home sold.

So, Should I Have an Open House to Sell My Home? My Take

There are certainly times when open houses are an essential selling tool

If my sellers want to do open houses there are times an open house is a good idea.  I think an open house can be a valuable tool the first weekend the house hits the market and if there is a significant price change.

But to sit there weekend after weekend doing open houses is a waste of valuable time.  Not only is your agent spending hours at your house, but they are also investing hours in marketing the open house.  For what? 1 attendee to show up?  There are more valuable ways to spend my time selling your home.

When it comes time to show and as stated earlier in the post, I want agents showing your home with their clients.

Personally, if you decide not to do an open house, you are not hurting your chances of selling.   Today’s home sales are more about leveraging the internet with good information and great real estate photos and other avenues.

There should be much more to an agent’s marketing plan than sitting around doing open houses every weekend.

The open house is a throwback to pre-computer/ MLS days.  A buyer had no idea what a home was like until they got into it.  But with the sharing of listings in the MLS and advancements in delivering information to home buyers, the open house is not nearly as crucial as it used to be.

You and your REALTOR should discuss the pros and cons of doing an open house and if it is right for you.

Massachusetts Real Estate Blog author and owner. Kevin Vitali- Haverhill Massachusetts REALTOR

Author Bio

Kevin Vitali is a Massachusetts REALTOR that serves Essex County and Northern Middlesex County in Massachusetts. If you want to buy or sell a home, let me use my years of experience to get you the best possible outcome.

Feel free to contact me to discuss any upcoming moves. I am always happy to answer your questions 

Call 978-360-0422     Email kevin@kevinvitali.com

Real Estate Services in the following areas: Northeast Massachusetts, Merrimack Valley, North Shore and Metrowest. Including the following communities and the surrounding area- Amesbury, Andover, Billerica, Burlington, Chelmsford, Dracut, Groveland, Haverhill, Lowell, Melrose, Merrimac, Methuen, Middleton, North Andover, North Reading, Reading, Stoneham, Tewksbury, Tyngsborough, Wakefield, Wilmington, Westford.