Open Houses Don't Work

It's been a real estate must have for decades, the open house. Sellers believe that having an open house will sell their home. Times have changed and so have buyers. I'm going to tell you why open houses don't work and why they won't sell your home.

So your home has just been placed on the market and you're anxious to have your Realtor hold it open to the public. You spit-shine your door knobs and iron your mini blinds. You just know that someone will walk in off the street and offer you full price. Let's put it in the newspaper and blow up some balloons, we're going to sell a house today! Wrong.

On average less than 1% of all homes are sold by an open house. Your chances are probably better if you leave a post-it note on your mailbox and the mail carrier buys it.

The majority of foot traffic in an open house are nosy neighbors, bored Sunday travelers, those looking for decorating ideas and people who are not serious about buying a home. There's even the grim possibility of having a thief or someone with bad intentions enter your home anonymously.

If you're a buyer shopping around and attending open houses without a buyer agent, you could get yourself into a negotiation/privacy issue. The last thing you want is to buy a home without your own representation. If you go to open houses and talk with the seller's agent, the information they gather on you could be used against you if you buy that home. Make sure to contact a buyer agent and let them make appointments for you. Also, this way, you won't be contacted by a ton of different agents and your own agent will get to know what fits you.

Realtors hold open houses for two reasons: To appease the seller because they've requested it and believe it will help, and to pick up new buyers.

That's right, most Realtors utilize open houses on Sunday for gaining new business. People that walk through the door are greeted by the Realtor and usually the conversation goes like this: "Hi, come on in I'm so and so with so and so company, (shake hands) Have a look around and let me know if you have any questions. I'll be here." When the potential buyers come back the Realtor asks, "So what did you think about the house?" Most of the responses are not enthusiastic and lead to something like, "It's a little too small for us, It's not really in our price range, It's not exactly what we're looking for." etc. The Realtor then asks, "Well, what are you looking for? I can help. In fact, I have a list right here of other homes in the area." There you have it.

The chances of someone walking in off the street and that property being the exact home to fit their entire list of needs is almost impossible, especially in a buyer's market and there being so much to choose from.

The problem with the open house is:

• Realtors aren't always able to accompany strangers while they walk through the home.
• It's a waste of the seller's time to leave all day and stage the home each Sunday.
• It's a waste of the Realtors time to advertise it and spend all day sitting in your home.
• It can lead to unnecessary foot traffic and the potential of thievery or broken items.
• It makes the property/sellers look desperate if there are too many.
• Odds of a home selling that day are slim to none.
• Even if there is a serious buyer, they often feel rushed or the home becomes smaller with so many people in it and they don't get the feel of the full potential and leave.

You're better off focusing the time on marketing the home online and locally. A Realtor all day on Sunday can do so much more with their time for your benefit than sitting in your kitchen waiting for strangers to walk through.

Adding open houses to the newspaper is a thing of the past. Most buyers are online now and don't have time for print ads. They have access to full photos and information of your home. They'll decide online or from their agent if they want to "walk through" your home. It's better to have them schedule an appointment with their agent and have their own private time in your home to slowly view it at their own pace. It's safer and more reliable. Buyers that are working with a buyer agent are going to buy a home.

Instead of asking your real estate agent to hold your home open on Sunday, instead ask them to spend a few hours marketing your home online. If they don't know how or what else to do besides putting it on the MLS, you have a problem. It's probably time to interview a new agent. Internet marketing is number one in today's real estate market. Open houses were number one in yesterday's real estate market.