DO OPEN HOUSES SELL HOMES?

After 22 years a a full-time real estate agent (Realtor), this question still looms in the industry.  Do open houses sell homes?

I got into this business back when the only technology we had was beepers, there was no Zillow that consumers could use to access homes.

Fast forward to 2023, and I am surprised how many sellers still want to have an open house even though the majority of times the result is naught.

Back then there was no other way for Realtors to attract potential buyers besides running ads in the newspaper, doing caravans, and open houses.

Even with the advancement of the 21st Century, the internet, multiple global real estate portals, such as Zillow/Trulia, brokerage websites, agent website, and more, I am surprised how many agents and buyers still believe Open houses sell homes.

Though it is not unthinkable to make a sale from an open house, I can say it is very unlikely. In my almost 2 decade career, I have only sold ONE home from an open house.

The reason I believe the odds of selling a home during an open house is so slim is due to the people who typically attend an open house.

The main reason for this thought process is most buyers who are serious about purchasing a home are already working with a real estate agent.

These buyer will get new listings directly from their agent as new homes come on the market, or they will use the internet to start their home search.  

Once a buyer locates properties of interest, their agent will take them out to look at homes and they get a private tour of the home.

There are still agents and sellers who believe that having an open house makes the property accessible to buyers and provide more exposure to the home, thereby increasing the chance of selling.

I don’t share that belief and here is why. Price, location, property condition, video and 360 tours, social media and staging sells houses!

If you get the pricing wrong and the location is less than desirable to buyers, no amount of open houses will sell the property.

Another reason open houses don’t work is that there is an over-abundance of inventory right at the buyers fingertips on a plethora of real estate websites.

For your home to stand out, it requires professional photography, video and other drone and aerial specs to capture that buyer’s attention.

Take a look at one of our marketing videos for an example of why we were able to sell this home directly from marketing, and not rely on the implausibility of an open house.

The next reason open houses don’t sell homes can be seen by looking at the typical attendee of an open house:

1. Neighbors. In more populated communities, the neighbors will more than likely be the only people who attend an open house.
2. Passersby: Curious people who are driving or walking by an open house sign may stop to look, but they are usually not in the market to actually buy a home.
3. Future Home Buyers: These are usually your first-time home buyers who will start their home search by trying to find the right neighborhood and kind of house they might want to buy. They are simply out looking for ideas and location, but they are not prepared to buy now.
4. Thieves & Robbers: All thieves give an open house a thumbs up. They are there only to case out a home rather than to actually buy. You could be unknowingly inviting and welcoming a robber into your home.
5. Unqualified buyers:  Many looky-loos are not pre-qualified to purchase a home.  So, even if they like your property, chances are they may not be able to obtain a home loan..

At the end of the day, open houses do have some benefits, but its usually not to the home seller.

So, who benefits the most from an open house? The real estate agent.

Many Realtors hold an open house for 2 reasons:

1. To build up our own business – lead generation
2. To make the seller happy.

As a Realtor, new customers are the lifeblood our my business, but I believe in actually marketing the home our customers hired us to sell.  I don’t use my seller’s home  as a personal lead generation vehicle.

When you are ready to sell your home, find an agent who does real 21st century marketing.

You want an agent who will build a story around your home and sell the lifestyle, essence and the reason you called it home!

Remember, buyers make a decision on emotion and pricing. So creating a story around your home is vital.  Using today’s technology and tools will provide you far more success than an open house.

Here is another example of superb story-telling marketing that delivered results and sold this home, which sat on the market with other agents for 2 years.

I listed it, made this incredible marketing video and sold it in under 2 months with NO open houses.

I would love to hear your thoughts on this subject and your experience with your own open house.

Post your comments below and join the discussion.