ARE OPEN HOUSE NECESSARY OR EVEN HELPFUL? HERE IS INFORMATION FROM BOTH SIDES OF THIS ONGOING DEBATE

The question of whether to do an open house or not has become a strong item of debate for Realtors, agencies, sellers, buyers, stagers, and even designers. The question is whether or not it is worth the time, effort and cost are worth it? I’ll give you my opinion at the end but form your own opinion based on the information here.

 Some agents believe open houses are important. Whatever your belief, this house is ready for potential buyers.

Copyright  2007 by Nate Steiner

People who believe open houses are worth doing say they are important because they:

• Get the word out about the property and give it exposure to more potential buyers.
• Allow buyers to look at houses without their agent (some people feel more relaxed without their own agent there) or waiting to get an appointment to see the home.
• Can often overhear the comments of other potential buyers.
• Draw in neighbors or people who just like to look at open houses, but they may know friends or family members that are interested.
• Use signs that may attract buyers that they may have not noticed otherwise.
• Could be properties that they wouldn’t necessarily have their agent make an appointment to see, but if it’s an open house they may decide to give it a chance because they feel they aren’t wasting anyone’s time.
• May attract buyers considering selling a home to buy a new one and seeing the home may be that push they need to decide to list their home.
• Could attract buyers considering selling and buying and if they click with the agent, they may decide to sell their own home.
• Give the agent the opportunity to get lots of feedback from people looking at the home, even if they aren’t interested in that particular home. This enables the sellers to address those issues so they won’t be a problem in the future.
• May enable sellers to feel more relaxed looking at the home because there are usually other people there so they are more open to giving the house a really serious look.
• Are effective if they are planned and advertised correctly.
• Do attract people as long as they held on weekends that don’t coincide with holiday, maj0r sports events, and things of that nature.

 

This house is another example of a home ready for buyers. But it still doesn't solve the debate of whether an open house would be effective in selling this home.

Copyright 2008 by Select Seattle Homes

 Those who say open houses are a waste of time believe this because they say open houses:

• Tend to attract nosy neighbors just looking to see their neighbor’s home or how much it’s worth, and don’t attract serious buyers.
• Attract people who just like to look at open houses on Sunday afternoons or are looking for decorating ideas.
• Don’t sell houses. There are statistics that show the majority of open houses don’t lead to an offer or sale.
• Are inconvenient because the sellers have to leave the home.
• Cost money to host, mostly in terms of advertising costs.
• Are time-consuming to plan and advertise.
• Are only used by agents to attract potential new clients for themselves.
• Just get the agent’s name in print or in any advertising.
• Rarely lead to an offer.
• Confine the agent to a home for a few hours when they could be out getting more clients.
• Are unsafe because the agent is often alone in a home and that fact has been advertised.
• Are held on weekends when many people are busy or spending time with family and don’t have time to visit open houses.

Regardless of whether your agent agrees with it or not, if you, the clients, want an open house they agent should respect your wishes and host the open house. The other type of open house is an agent open house, which is a topic for another post.

 Realtors, show above, are still not in agreement about whether open houses are effective or not. However, it's not a major issue between agents.

Copyright 2012 by Realtor Action Center

Here’s my take on open houses. I don’t think they are a waste of time. I do think agents need to prepare sellers by explaining the purposes for hosting an open house and the benefits they provide, but also explain that most don’t lead to an immediate offer or sale. This way, sellers aren’t disappointed. They are one part of the many things an agent needs to do to get the word out about the home.

Many open houses are a waste of time because they are not done correctly. They are not planned, organized or advertised correctly. And the other reason they don't work is that the price is not accurate for the home. Anything that gets positive information out about your home is good. Yes, the will attract neighbors and curious people who go to open houses for fun or to get decorating ideas, but you never know who they know that may be looking for just such a house. And while the majority of open houses don’t directly sell a home, there are those few that do, so why take a chance and miss out on a sale?

In addition, the open house is part of an integrated advertising approach where all parts contribute something and build on each other. I don’t think you need to have one every couple weeks. And if you stage, this won’t be necessary. It’s critical to pick a date that will work and doesn’t coincide with holidays or other major events. In addition, advertising is critical. And finally, surveys and studies show signage was the reason they came and that shiny balloons (like silver metallic) do draw attention.

Regardless of what type of home you are selling, you and your agent should have a comprehensive marketing plan. 

Copyright 2004 by Carly Franklin

Agents know what forms of advertising work best in your area. This varies greatly by region, state, and even county. Buyers are also people that know the best places to advertise. Ask them where they look to find open houses so that you can get the most people to attend. I believe an open house is an important part of selling a home, provided it’s done correctly.