What Are Open Houses?
Open houses are a marketing activity performed by a licensed real estate agent, usually on a weekend, whereby a home seller’s property is open to the public for a designated time period.
Open houses typically last for a couple of hours, when people can come and go at their leisure.
There is no appointment or qualifications necessary to enter the home. If you look, you’re bound to see weekend open houses in your area.
During an open house, the property is typically showcased by a real estate agent or homeowner, allowing visitors to explore the space and get a feel for its layout and features.
It provides an opportunity for potential buyers or tenants to view the property without having to schedule individual appointments, making it convenient for both parties involved.
Open houses often include refreshments, informational brochures, and the chance to ask questions about the property. It has become a popular practice in the real estate market as it allows for a more relaxed and informal way of showcasing properties to interested individuals.
While on the surface it all sounds good, there can be significant drawbacks to letting a bunch of strangers into a property.
How Do They Work?
How does an open house work? If you have never sold a home before, you may not know.
Buyers are able to come and go at their leisure. They can take as much time in the home as they need.
The benefit of open houses for buyers is their agent does not need to accompany them. The listing agent or another from their company will be there to let them in.
Let’s review everything you need to know about open houses, including whether they sell homes.
Facts to Know About Showcasing a House
1. Open house is an event where a property that is for sale or rent is open for public viewing without any appointment.
2. It allows potential buyers or renters to explore the property and get a feel for its layout and features. They can also get information about the neighborhood and community from the listing agent.
3. Open houses are usually organized by real estate professionals or property owners.
4. They are commonly held on weekends when most visitors have free time to look.
5. They provide an opportunity for multiple potential buyers or renters to view the property at the same time.
6. Unfortunately, many of the visitors are strangers that don’t belong. Access is granted to anyone who wants to come in the door.
7. Visitors can ask questions, gather information, and compare the property to other listings on the market.
8. Real estate agents often use them as a marketing strategy to attract more potential buyers or renters.
9. The purpose is to generate interest, create a sense of urgency among interested parties, and ultimately secure a buyer or renter.
10. In some cases, properties sell directly after an open house event.
11. Attending them can be a helpful step in the process of buying or renting a property as it allows individuals to physically explore their options before making a decision.
12. Potential buyers can learn about essential features, including how spacious the property is and other amenities like the kitchen, bedrooms, bathrooms, family room, and size of the backyard.
13. A Realtor can get feedback about the advantages and disadvantages about the property, helping agents and sellers be on the same page about pricing, staging, marketing, etc.
Do They Sell Homes?
Does an open house 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. One says open houses are a vital part of marketing, and the other says they are entirely unnecessary.
If you have followed my blog, Maximum Real Estate Exposure, I am sure you know where I stand.
These Events Are Not Necessary to Sell Houses
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 think they get on their computer and look at homes, 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.
They Work For Real Estate Agents, NOT Sellers
So when someone asks “do open houses work” my immediate thought is always, “work for who”? 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 into 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 wonder, 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 will certainly not be at the front door screening people!
Over the years, numerous agents within my company who’ve held open houses have experienced theft. One client lost $15,000 in jewelry!
Realtors Talk About Being Qualified Except With an Open House
It’s funny because most professional real estate agents preach 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.
Many of the visitors won’t have the ability to get financing for the asking price. Unfortunately for sellers, buyers don’t have to have the ability to get a mortgage to attend.
The threat of something being stolen 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.
Why would you want an open house if anyone 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 they can use it as their personal sales office to generate leads is foolish.
The Debate You See Online From Agents
It always gets comical when I see real estate agents debating the merits of open houses online.
Real estate agents on favorite blogs like this one will argue why 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.”
The Real Definition of it Working
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 not have been in the market to buy a home. They would also not be working with a real estate agent. Just by circumstances, they drove by the house, came in, and fell 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 an excellent guess.
The Event Didn’t Work if The Buyer Would Have Scheduled a Showing
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 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 a week and 24 hours 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 on your lawn.
There are lots of open house myths that have been around forever. A significant amount of agents play up these myths. Sad but true.
Here is the truth: If open houses were banned across the country tomorrow, no fewer homes would be sold. Those folks who wanted to get into a home would schedule an appointment. The rest of the Riff Raff would have to find something 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.
A Realtor Should Be Explaining The Downsides
Look behind the scenes at the latest disappointed real estate agent who realizes I have once again let the cat out 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 ensure the sale happens regardless of whether it benefits the seller. Don’t be suckered by this kind of nonsense. 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 this must be a fruitful activity.
Open houses can be fruitful for real estate agents - for sellers they are a complete waste of time!Click To TweetDeferred Showings Are Much Better
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.
You are letting the buying public know about a property soon hitting the market. Your home should be flooded with buyers that first weekend in a strong seller’s market.
You’re also going to let them know you will not respond to offers until Monday.
What this does is give every buyer ample opportunity to purchase your home.
Deferred Showing Increase Bidding Wars
The chances of having multiple offers that turn into a bidding war are 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 precisely what you’re looking for, you’ll never know if others would have done the same. You can feel 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 will 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 Them 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 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.
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 interviewed will get the listing because they do open houses.
It is a shame that so many agents must go to great lengths to fool the public.
The Video Home Sellers Should Watch
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!
Open Houses Near Me
Want to take in an open house firsthand? One of the easiest ways to find an open house nearby is to Google open houses near me. You should see advertisements from real estate agents.
Open houses near me today will also work well. You can also drive around the area looking for open house signs.
Final Thoughts
Most brokers and agents hold these events to prospect for future business. They will attempt to collect the contact information for the parties who attend, including a phone number and email. They have and always will be more beneficial for agents than homeowners.
Other Valuable Resources
- Open houses benefit real estate agents, not home sellers – learn why open houses are more beneficial for agents vs. sellers via RIS Media.
- Do I need an open house – many home sellers ask themselves should have an open house. Learn more via Jeff Nelson.
- The open house lie agents weave – you will be set straight on the usefulness of an open home via Consumer Advocates in American Real Estate.
- Open houses don’t put a seller’s interest first – the seller is in a terrible position when real estate agents don’t explain the cons of these events. Find out why via Kyle Hiscock.
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 seller’s home at risk.
Remember, scheduled showings = vetted home buyers. Open houses = anyone with a pulse.
About the Author: Bill Gassett, a nationally recognized leader in his field, provided the above real estate information on do open houses work. He is an expert in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications he has been featured in. 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 Metrowest towns for the last 38+ years.
Are you thinking of selling your home? I am passionate about real estate and love sharing 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, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
