Showings in Real Estate Beat An Open House
Real Estate showings from an agent beat visitors from an open house every day of the week.
When you have a house showing, you can almost always be assured the buyer’s agent has vetted the buyer.
Open houses are a completely different animal. The open house is ubiquitous in real estate sales.
Many real estate agents conduct open houses, and many home sellers expect an agent to have an open house.
But, like so many things, just because everyone is doing it does not mean you need to do it too.
The benefit of an open house is much less clear than most people realize. There can be downsides to open houses, which outweigh the benefits.
You can sell your home without an open house, and that’s the bottom line!
Avoiding an open house will not cause your home not to sell. An open house is an archaic form of marketing.
There are a lot of real estate agents who don’t want you to know this, but it’s the truth!
Many Realtors hate when I discuss that open houses are unnecessary for selling a home. They will argue online, saying things like their real estate markets are “different” or they have sold three homes in the last month from an open house. I say hogwash!
Over the years, I have explained this to many clients. Do you know what happens? Most of the time, the owners have a real sense of relief. Many do not want a bunch of strangers scoping out their homes unless they are serious house shoppers.
You get serious buyers will real estate showings – something that can’t be said about most visitors to an open house.
Open House vs. Real Estate Showings
Most homeowners ask, are open houses worth it? Statistically speaking, the answer is NO. There are severe drawbacks to holding them, which are discussed below.
It’s imperative to understand that the same “real buyers” attending the open house will also schedule an appointment to see the home. Yes, you will have showings from those same people who attend the open house!
In other words, instead of holding an open house and having a mix of qualified and unqualified people roaming around your home – SKIP IT!
You do not need an open house to sell your home in the digital age. Anyone can go to an open house. Why would you want that?
Real Estate showings with qualified buyers are what every seller should strive for.
What is a Real Estate Showing?
Real Estate showings are scheduled appointments for a potential home buyer interested in viewing a property.
Showings are usually set up between a buyer’s agent working for a buyer and a listing agent working for a seller.
The buyer’s agent will request a date and time for their client to see the home. The listing agent will get the showing approved through the seller.
Real Estate showings can be accepted or denied by the seller. It always behooves a seller to get as many showings as possible to enhance the chances of selling quickly.
How Are Showings Scheduled?
Real Estate showings can be scheduled in a few different manners. Some real estate companies will schedule showings directly with the seller. They will provide this service on behalf of their agents.
Some listing agents prefer to schedule showings directly with their seller clients and make the call themselves.
After being in the real estate industry for thirty-seven years, the best method is when a third-party company schedules showings.
Real Estate showings handled by an outside company take the burden off real estate brokerages and agents so they can do other more productive activities.
One of the best companies for scheduling real estate showings is ShowingTime. The company makes it easy for agents to get showings set up.
Showing instructions are set in the Multiple Listing Service to request agents call Showingtime to arrange an appointment date and time.
ShowingTime will then contact the sellers to confirm the appointment. They offer the convenience of having the seller decide how to contact them.
The seller can choose a phone call, text, or email. If a seller prefers, multiple methods can be used to contact them.
Sellers Receive Real Estate Showing Feedback
Perhaps one of the best aspects of scheduled showings through ShowingTime is they provide an automated service to get feedback for the seller.
The buyer’s agent will be emailed asking them how the showing went and for feedback. Agents can quickly fill in the form, which gets sent to the seller and listing agent simultaneously.
The showing feedback keeps the seller and agent in the loop quickly and efficiently. Sellers and their agents can adjust the price or the house’s presentation as needed.
It takes the monotonous task of calling for feedback off an agent’s plate, letting them focus on other essential marketing activities.
Who Attends a Real Estate Showing?
Real Estate showings are attended by the buyer and the buyer’s agent. Occasionally the listing agent will attend, although it is not recommended. Accompanied showings make homes harder to sell.
Buyers and their agents don’t want the agent there hovering around. It makes it much harder to speak freely. Showings that the seller’s agent accompanies also make scheduling showings far more challenging.
Additionally, it is never a good idea for a seller to be present for a house showing. It makes buyers and their agents uncomfortable.
How Long Does a House Showing Take?
Real Estate showings vary in length of time. There is no standard time frame for how long showings last. If a buyer is uninterested, they will usually be in and out of a house in a few minutes.
On the other hand, if the buyers have interest, they will take their time walking through a property.
Signs a House Showing Went Well?
There are a few indicators that a real estate showing went well. If a buyer is in the home for a long time, it usually indicates interest.
When the buyer’s agent calls the listing agent asking questions, that is also an indicator there is interest. Lastly, a scheduled second showing will cement a buyer’s interest.
What is The Busiest Day of The Week For House Showings?
Fridays and the weekend are typically the busiest days for scheduled real estate showings.
How to Prepare For Real Estate Showings?
One of the most vital exercises for selling a home is making the property appealing to buyers. Staging a house is essential to get the most money for your property.
Before the home is listed for sale, you should take the time to improve its appearance. Staging can include removing clutter, making minor repairs, rearranging furniture, painting, storing things, etc.
On showing day, the home must be picked up and ready for buyers. All the curtains and blinds should be drawn to let in as much natural light as possible.
Any darker areas of the home should have ample lighting turned on. Real Estate showings should be a pleasurable experience for buyers and their agents.
The best house viewings lead to offers and homes quickly going under contract.
Now that you know about real estate showings, let’s explore why open houses are less desirable.
Problems With An Open House
The image most people have of an open house – where many qualified buyers pour over your home, making offers and eventually closing the sale you want – is rarely accurate. Several common issues with open houses make them less than ideal.
Agents pushing for open houses rarely discuss these disadvantages with homeowners. Why do they do this? Simple – open houses are potentially excellent sources of prospects for a real estate agent.
Rarely does an open house result in a sale of the property being held open. For the reasons you will see below, it may be wise to avoid them. Is an open house necessary to sell a home? Not!
If you hear an agent telling you an open house is needed during a real estate interview, you should show them the door.Click To Tweet They are lying!What Makes Real Estate Showings Superior to An Open House?
Unqualified Buyers
Of all the people who see your open house and choose to come to check it out, very few will be qualified to purchase your home.
Open houses are indeed “open,” which means anyone with a pulse can walk through your door and wander about your home. Many people will search for open houses near me for something to do on the weekend.
Nosy neighbors, couples dream shopping (for the home they may, just may be able to buy one day), random drive-bys, and other home sellers looking to check out the competition – many people will come by that are unlikely to buy the property.
Only a few people are positioned to purchase your home. They must have the financial qualifications, be looking for a house like yours, and be interested in buying in the period you sell.
Part of what makes hiring a top-producing Realtor necessary is that a great agent knows how to find these buyers. Excellent marketing identifies good prospects and gets the message out to attract those prospects.
Top-producing real estate agents rarely ever hold open houses. The reason for this is simple – top-producing agents don’t need to hang out in someone’s home prospecting for business.
Want a good chuckle? Take a look at this RE/MAX video on open houses. It sums up how something popular in the 80s is no longer necessary today.
Like bad wallpaper, open houses should be a thing of the past.
Frankly, they would be if they weren’t a benefit for a real estate agent picking up clients! If open houses were banned across the country tomorrow, there would be no fewer home sales.
Video: Skip The Open House and Shoot For Scheduled Real Estate Showings
A great agent also realizes an open house is never needed when you price a home correctly and do an excellent marketing job.
Genuine buyers are on the internet looking for homes every day. When serious buyer wants to see a home, they will call their agent and schedule a showing. It is as simple as that. Lots of agents, however, will try to convince you otherwise.
Outstanding real estate agents ensure their clients are pre-approved for a mortgage before going out and showing them homes!
Do you want unqualified buyers visiting your home? People who can’t afford your home will be a segment of the viewers coming through.
Theft And Security Issues
The other major issue with an open house is that these events are prime opportunities for dishonest people to take advantage of you. Some visitors may steal from you outright once they discover a chance while looking at your home.
Even more worrisome are the visitors who are more patient and cunning – those who stake out homes for security flaws or create security flaws (like unlocking windows) and come back later to exploit those weaknesses when you are asleep, at work, or out of town on vacation.
I know of incidents where open house thefts occurred in my local area of Hopkinton, Mass and Milford, Mass. Over fifteen thousand dollars of jewelry, including a diamond ring, was stolen in one home.
A five thousand dollar painting was stolen from the other home’s wall. In both instances, multiple parties were in the house, and the agent could not watch everyone.
Does this sound like something you want to have to happen to you? Having an open house dramatically increases the odds that it will!
With scheduled real estate showings, a buyer’s agent will be with the buyers walking through.
Why Do Real Estate Agents Promote Open Houses
You might wonder why many real estate agents promote open houses so heavily.
It is simply for three reasons: Prospecting, potentially double-siding the sale, and branding.
It should be called the big open house lie.
Prospecting For The Agent
There is no denying that an open house can bring in people off the street who can become clients for other properties.
Double Siding The Sale
There is a chance someone may buy a home that does not have an agent.
What agent wouldn’t want to get both sides of the transaction in which they make twice the money?
The problem with this, however, is that this does not benefit the seller or buyer if the Realtor is a dual agent representing neither exclusively. Dual agency is one of the worst practices in real estate.
So bad that it has been made illegal in several states. Do yourself a favor and read why accepting dual agency is terrible.
Branding For The Agent and Company
Owners of real estate companies love to see their agents spreading the company sign all over town on the weekend. A lot of open house signs are a lot of free advertising.
You Can Sell Without Opening Your Home To Everyone
Selling your home reasonably and for an excellent price without having an open house is possible. It would be best if you had a few things, including:
An Exceptional Real Estate Agent
A quality real estate agent will be okay without having an open house. You may even find individual agents encouraging you to avoid an open house, as they know it may do more harm than good.
Top agents know that scheduled real estate showings offer the best home-selling chance.
You can find such an agent if you are willing to put a little time and effort into your search.
You don’t want just anybody – your sister’s boyfriend, the sweet lady from church, or a random real estate agent in the yellow pages. Someone with a strong resume is the best choice.
A list of recent home sales, references for several satisfied clients, a proven ability to sell relatively close to the original listing price, a personality you can get along with, an agent with a strong web presence and social media savvy, etc.
Bad Realtors will tell customers the selling price they want to hear to get a listing, then eventually cave to a much lower price when the home doesn’t sell.
Identify the characteristics vital to you in an agent, then interview at least three prospects to find the right fit. Take your time – your chosen Realtor will be your partner in one of your life’s most significant financial transactions.
Once you have selected an agent you can trust, please do your best to follow their instructions. While you are the final word in all decisions regarding your sale, you want to let your real estate agent do what they do best and avoid inhibiting your agent.
Fantastic Online Marketing
Over 90% of all homes are purchased via an online search – not yard signs or an open house. Any agent worth hiring will know how to market effectively over the internet.
It never hurts to put up a sign, but the real leverage comes from selling online.
In the digital age, buyers spend significant time looking at homes online. They call their real estate agent to schedule a showing when they see one they like.
Rarely does a buyer say to themselves…..no open house, sorry, not interested anymore. DUH!
Great online real estate marketing consists of three things:
Exceptional Photography
The pictures that go up online of your home are the king of your marketing efforts. They must be good if you want your home to look appealing.
You want rooms shot from multiple angles, at the correct exposure, and establishing a perspective that makes them look their best.
You want such good photos that the online buyer feels they have already visited the home when they arrive.
Creative Listing Descriptions
Well-thought-out real estate listing descriptions are essential. If photos are king, descriptions are queen.
Many real estate agents fail to take the time to write compelling property descriptions. They think it is enough to give the basic details and leave it at that.
But it is not enough if you want to attract many showings. The descriptions need to describe your home in the best possible way.
Real Estate Virtual Tours and Video
Buyers have come to expect virtual tours of available properties. Videos have become increasingly popular for this reason.
You want video posted to YouTube – a Google product that is the second most visited website behind Google. A sloppy video won’t cut it, either.
You need a professional-looking production, which takes skill but is worth the investment. Your Realtor either needs to know how to make quality videos or needs to have someone that can do it for them.
Here is an example of a professional video tour. A video tour should be required when selling luxury real estate.
Home buyers love the opportunity to view a home this way. It gives them a great feeling for the property before ever stepping inside.
Deferred Real Estate Showings – A Better Option Than an Open House
Do you want a better way to market your home than an open house?
How about if I gave you a method that would dramatically increase the odds of getting multiple offers on your home? Would you be interested?
I am sure you are nodding your head YES right now! The concept is known as deferred showings.
Deferred showings are a powerful marketing tool for sellers.
Here is how it works. You list your home on a Monday or Tuesday and don’t let anyone in to see the house until the weekend. Why do this?
Have you ever put your home on the market and got an offer immediately?
Did you feel like you might be leaving money on the table?
Deferred showings eliminate that possibility.
You are creating a buzz by listing your home in the multiple listing service for a few days and not letting anyone in.
Multiple buyers will be chomping to get in and see your home in a seller’s market with low inventory.
No Showings Until Your Predetermined Future Date
They won’t be able to because you’re not letting them in. Your home, however, will be filled with people come the weekend. The chances of having a bidding war and getting multiple offers will increase dramatically.
Doing things traditionally can put your home on the market and get a decent offer the next day. What you will never know, however, is if there was someone else who would have paid more.
You won’t know if you would have had multiple people fighting over your property, bidding it up over the asking price!
Deferred showings are something I do regularly, and it is very successful. Open houses are something I rarely ever do.
Instead of having many people who don’t belong in your home, you have many serious people who have scheduled showings. This is a win-win.
I am a top-producing real estate agent, so I don’t need to use your home as a prospecting activity. On the other hand, you don’t need every Tom, Dick, and Jane coming through your door to appease a Realtor’s appetite for finding a few more clients to buy elsewhere.
You can sell your home without an open house – end of story!
The Open House Exception
There is one exception where open houses can be a vital part of real estate marketing, and that is with new construction.
With new homes, you are not marketing a single house but typically an entire neighborhood showcasing the builder’s product, amenities, and options.
This is a far cry from trying to sell a single re-sale home. Unless there is a furnished model home, more often than not, you don’t need to worry about theft.
Final Thoughts on Real Estate Showings vs. Open Houses
Other real estate agents get mad at me for speaking the truth about open houses. They ask me why I have such a big issue with open houses. The fact of the matter is I don’t have a problem with them at all.
I have a problem with agents who don’t explain the risks to sellers and pump them up as necessary for their benefit.
Both of these things are WRONG! Misleading the public for your benefit brings down the perception of the industry.
Additional Open House Resources Worth Reading
- Why you should avoid having an open house – Consumer Advocates in American Real Estate explains all the significant drawbacks of hosting an open house.
- Should I have an open house – Kevin Vitali provides his thoughts on whether to skip an open house and strive for the most showings.
- Should you allow a real estate open house – Debbie Drummond talks about why sellers might want to skip an open house.
Use these additional resources to understand why open houses are no longer needed to sell a home in the digital age.
About the Author: The above Real Estate information on the real estate showings vs. an open house 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 Metrowest towns for 37+ 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, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
This is a great article. Being a newbie in the real estate industry, I have learned a lot.
Looking forward to your next write up.
Thank you for this exposure.