Do Open Houses Work

Do Open Houses Sell Homes?

Do open houses work? Do open houses sell homes? These are questions that every real estate agent has been asked at one time or another in their career.

One of the most heated debates in real estate comes into play when Realtors talk about whether open houses work to sell a home.

There are two camps on this hotly debated topic – those that say open houses are a vital part of marketing and those that say they are completely unnecessary.

If you have ever followed my blog, Maximum Real Estate Exposure, I am sure you know where I stand on this subject.

Let’s get one thing out on the table right away. Open houses are a waste of time for a seller and entirely unnecessary to sell a home in the digital age.

When someone decides they are in the market to buy a home what do they do? If you are thinking they get on their computer and look at homes, then you are 100 percent correct. When they become really serious, do you know what else they do?

If you are guessing they call a real estate agent you are right again! SERIOUS buyers always call a real estate agent when they are in the market to purchase a home. They pick up the phone, call the agent, and say I would like you to show me the home on Main Street.

So when someone asks the question do open houses work, my immediate thought is always “work for who”? You see the dirty little secret is that open houses work great for real estate agents!

They are the perfect opportunity for a real estate agent to shake hands and meet people. Not everyone who walks in the door is a buyer for that home, but they could be a “prospect” for other houses.

Folks, this is why real estate agents do open houses. Don’t kid yourself believing otherwise, despite what some of these agents want you to think. Open houses are the perfect place to meet prospects for other properties.

If you are a homeowner reading this, you might be thinking what difference does it make whether an open house works or not.

Frankly, it doesn’t mean anything as long as you don’t care who walks through your home. What many sellers forget about is the fact that an open house means precisely that – open for ANYONE to come through the door!

An open invitation means you will see some or all of these people coming by:

• Your nosy neighbors who have nothing better to do.
• Those who are UNQUALIFIED to pay anything close to your asking price.
• If you are really unlucky, you may end up with a thief walking through the door on any given Sunday. Yes, folks, open houses increase the odds of a burglary taking place!

Are these the kind of people you want prancing through your home? The real estate agent hosting the open house is certainly not going to be at the front door screening people!

It’s funny because most professional real estate agents preach about the importance of having qualified buyers be shown the home but when it comes to open houses, they throw the baby out with the bathwater.

The threat of something being stolen either during or after the open house is real. So many unprofessional agents, however, will never bother telling their clients about the downsides of having an open house. Doing so might prevent their prospect train from rolling.

Since most agents won’t tell you this – here are the things you should put away if you have an open house. These are the most common items people will steal when visiting open houses.

The question remains why you would want to have an open house if anyone who is serious about purchasing a home will call a real estate agent? Let me answer the question for you. You shouldn’t. An open house is completely unnecessary. Any real estate agent who tells you otherwise is lying!

Letting a real estate agent talk you into vacating your house so that they can use it as their personal sales office to generate leads is foolish.

The Debate You See Online From Agents

Where it always gets really comical to me is when I see real estate agents debating the merits of open houses online. On favorite blogs just like this one, there will be real estate agents arguing why real estate open houses are great.

Those who regularly do open houses will say online they do work. You will hear agents say things like this:

“My market is different – they do work here.”

“My last open house had over 50 people attend.”

“I sold a home just last week from an open house.”

Folks here is my definition of “does an open house work to sell a home” – To say something works would mean this – The person who made a successful offer on the home came by because they saw a sign or an ad.

This person would also have not been in the market to buy a home. They would also not be working with a real estate agent. Just by circumstances, they ended up driving by the house, coming in and falling in love.

That my friends is the definition of an open house working.

Guess how often this happens? Less than 1% of the time would be a great guess.

For a real estate agent to say an open house works otherwise is ludicrous. When another real estate agent drops by the open house and writes a successful offer for their client that is NOT by definition working.

When a buyer who is in the market to purchase a home comes by without their agent and writes an offer that is also by definition not considered working.

If these same damn people would have scheduled a showing at a different time other than the 2-3 hours the home was open, don’t tell me the open house worked!

This, however, is how real estate agents claim that open houses do work to sell a home. That my friends is foolish.

Keep this in mind – there are seven days in a week and 24 hours in a day. Doing some quick math that is 168 hours a Real Estate agent could be working for you to sell your home. Don’t fall for the notion there is something magical about the 2-3 hours on a Sunday afternoon the agent throws their open house sign out in your lawn.

There are lots of open house myths that have been around forever. These myths are played up by a significant amount of agents. Sad but true.

Here is the truth: If open houses were banned across the country tomorrow there would be no fewer homes sold. Those folks who really wanted to get into a home would schedule an appointment. The rest of the Riff Raff would have to find something else better to do on a Sunday.

Could you be part of the 1-2% of the people who sell solely because of an open house? Sure and you also might win the lottery too.

Take a look behind the scenes at the latest disappointed real estate agent who realizes I have once again let the cat of the bag on the truth about open houses. Real Estate agents who don’t explain the risks of an open house care about one thing – their own wallet.

These are the same kind of agents who will tell you there is nothing wrong with dual agency, even though the real estate agent is the only one who benefits. Most sellers hiring a real estate agent and paying them thousands of dollars in commission want them in their corner. They are hired for their expertise. The agent is the seller’s guide throughout the transaction. A true fiduciary looking out for their best interests.

If you allow dual agency, you no longer have an advocate in your corner. You have an agent doing whatever they can to make sure the sale happens regardless of whether it benefits the seller or not. Don’t be suckered by this kind of non-sense. Now back to open houses…..

An exceptional real estate agent will explain the risks involved in an open house. They give the pros and cons and let the seller decide if the open house makes sense for them. Unfortunately, homeowners are conditioned to believe that open houses are necessary.

Who can blame them when the average real estate agent uses an open house as one of their primary marketing methods. Quite often people see all the cars parked outside the house and think to themselves this must be a fruitful activity.

Deferred Showings Are Much Better Than Open Houses

The whole purpose of having an open house for a seller should be maximum exposure, right? Well, there is a much better way of doing so without exposing a seller’s home to potential theft or a bunch of people who don’t belong.

It’s referred to as delayed showings or deferred showings. It works like this…..you list your home for sale on a Monday or Tuesday, and you don’t let showings start until Saturday. The home will appear in the multiple listing service (MLS), but the house can’t be shown until the weekend.

What you are doing is letting the buying public know about a property that will be hitting the market soon. In a strong seller’s market, your home should be flooded with buyers that first weekend.

You’re also going to let them know you will not be responding to offers until Monday.

What this does is give every buyer ample opportunity to purchase your home. The chances of having multiple offers that turn into a bidding war is exponentially greater doing deferred showings. This method is much better than letting showings start immediately.

With immediate showings, the first person walking through the door could make an offer. While they could give you exactly what you’re looking for, you’ll never know if others would have done the same. You can feel very confident you won’t leave money on the table selling your home.

Additionally, you can feel confident knowing every buyer coming through your home will be done so by a scheduled showing. More than likely every buyer is going to be financially vetted by their agent. The exact opposite of what happens with an open house!

There will be no worries about a bunch of deadbeats potentially casing your home for valuables that can occur at an open house. This is the correct way to do a coming soon real estate listing where the seller receives the maximum benefits.

Picking an Agent Who Focuses on Open Houses is a Mistake!

Top producing real estate agents rarely ever make the focus of their marketing efforts an open house. The best agents don’t need to prospect for business by holding an open house. Agents who regularly hold open houses do so because it is the best way for them to procure new clients for other properties.

If you pick a top real estate agent who prices your home accurately, you will never have to put your home at risk by having an open house! The fact of the matter is an open house is for the benefit of a real estate agent, not a home seller.

Frankly, many agents are afraid to tell a home seller during the listing interview that an open house is not a good idea. The fear is the next agent in will get the listing because they do open houses.

It really is a shame that so many agents have to go to such great lengths to fool the public.

Do open houses sell homes? Does an open house work? Hopefully, by now you have come to the conclusion that the answer is NO! Skip the balloons, the bouncy castle, the bean salad and all the other fancy gimmicks agents use to convince you to have an open house. Enjoy the funny video below on open houses. It’s spot on.

When selling a home, look for an agent who always puts your best interests first. Not their own!

Other Valuable Open House Resources

Want more opinions on why open houses don’t work for homeowners? These references provide excellent examples of why the real estate open house is an outdated sales tactic that puts a sellers home at risk.

Remember scheduled showings = vetted home buyers. Open houses = anyone with a pulse.

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About the author: The above Real Estate information on do open houses work was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for the last 31+ Years.

Are you thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service Real Estate sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton and Uxbridge MA.

Source: https://www.maxrealestateexposure.com/do-open-houses-work/