Who Can Go to an Open House in Real Estate?
Can anyone go to an open house? They sure can and will. Expect anyone with a pulse to show up.
If you are selling your home, you may not be aware that there are drawbacks to having an open house.
After all, many real estate agents who meet with prospective sellers speak highly of them.
Real estate open houses are one sales tactic that may be more about the hype than about results.
Some real estate agents play up the benefits far more than they should, considering the many downsides to the process.
The fact is open houses are rarely conducted to sell a home. Some agents still believe that the open house has a place in selling a home.
There will always be homeowners that do not know any better. However, the facts about open houses should discourage anyone from bothering with the process.
The debate over whether an open house is a good marketing activity almost always boils down to a battle between real estate agents at the pinnacle of their game (top producers) and those agents who need to do open houses to generate additional clients.
In other words, real estate open houses can be significant prospecting activities for Realtors.
What Exactly is an Open House?
What is an open house? Open houses are a common marketing technique employed by licensed real estate agents. They typically occur on a weekend when their clients’ homes are accessible to the public for an allotted period.
Open houses typically last for a couple of hours, affording guests ample time to explore the space in relative anonymity.
There is no need for an appointment or qualifications to enter the property. If you’re observant enough, you will likely come across open houses in your area over the weekend.
Do open houses sell homes? Statistically, the answer is clear-cut and dry – Rarely!
Some real estate agents have to do open houses, or they wouldn’t know where to find their next prospect if it hit them in the face.
Consumers must understand that “real buyers” schedule appointments to see homes they want to view.
How many buyers ready, willing, and able to purchase a home say to themselves – if those Realtors don’t have an open house – forget about it; I’m not interested!” Sounds pretty moronic. That’s because it is.
When weighing the pros and cons of an open house, the cons come in ahead by a large margin! Open houses rarely work to sell a home and put sellers at undue risk.
Can You Go to an Open House Without a Realtor?
Yes. Potential buyers do not need their Realtor to attend the open house with them. Most often, buyers attend open houses without their real estate agent.
Lots of people go to open houses just for the fun of it. Going to an open house without a real estate agent is commonplace. People will search for open houses near me today and stop by leisurely.
Open House Sign-in Sheet
As a seller, you may wonder what is done to vet the people coming into your home. The answer is NOTHING. The real estate agent hosting the open house will ask you to sign the “open house sign-in sheet.”
Can a buyer skip it? They sure can. Nothing prevents a buyer from not putting their John Hancock on the open house sign-in sheet, and the real estate agent certainly won’t be holding a gun to their head.
Many buyers will enter a fake name and number when signing open house sign-in sheets. When anyone can attend, it encourages these situations.
From thirty-seven years of experience in the real estate industry, if you want to sell your home fast for top dollar, hire an agent with a track record of success.
Here are all the reasons to skip the open houses.
Why You Shouldn’t Have an Open House
1. Security Issues
One of the most significant drawbacks of an open house is the potential for theft. Letting strangers in off the street to wander around your home carries some obvious security risks.
While most visitors will likely be there to view your home and learn more about it, some may be there for more nefarious reasons.
The fact is, during an open house, anyone can come in – even people who are looking for access points, security weaknesses, and valuables.
Most real estate agents who tout open houses never want to discuss this. They will sweep this under the rug at the seller’s expense to keep the prospecting train rolling.
Last year, during the peak spring selling season in Hopkinton, Massachusetts, one of the agents in my office held an open house on a Sunday. However, the home had been listed the prior Wednesday, and no showings were allowed until the open house.
By the way, this is the only truly effective means of holding an open house, as it sets up the possibility of a frenzy of potentially interested buyers viewing the home at once.
The delay in showings creates pent-up demand for the home and the chance for multiple offers. The downside, however, was significant.
Thirty to forty couples visited the open house during the two-hour viewing window.
God bless her. The agent could not possibly watch every individual walking through the home at all times. This, unfortunately, cost the seller big time, as a $5000 painting was stolen right off the wall!
Of course, the agent had no idea who could have taken the artwork, nor could the police after visiting the home. Good thing for home insurance!
2. The Risk of Theft is Real
The risk of theft ties into security issues, but it deserves its section. There have been documented cases of people breaking into houses for sale and stealing things, such as in this New York Times article on open houses.
Sometimes, they do it in unoccupied homes, and sometimes in homes that people still live in.
The temptation is too much – they can walk into the open house, see what they want to take and how they can get in, and then burglarize the place.
Folks, this is not just an isolated example—it happens all around the country! An open house is an open invitation to make theft more probable. Anyone can go into an open house.
3. You’ll Have Lots of Unqualified People Entering Your Home
Have you ever driven through a beautiful neighborhood and seen an open house – a lovely house – and thought about stopping in to check it out? Most people have at least considered it.
Nothing is wrong with doing so – how often do you see how other people live and decorate? The problem is that the people entering your open house usually do the same thing.
“I’m just stopping in to check things out, not to buy.” The ironic thing about this is that Realtors always preach to homeowners how to go out of their way to ensure buyers are qualified to buy their homes.
Yet this line of thinking regarding open houses is thrown out the window. Come on in, everybody! As long as you have a pulse, you are welcome here.
4. The Nosy Neighbors Will Be in Your House
An open house is like a beacon to neighbors curious about your home. They may be great neighbors or not-so-great neighbors. However suitable they are to live by, you may not want them wandering around your house.
Unfortunately, there is no way to stop them. Once you open your home, almost anyone can walk through the doors. Expect the busy bees to stop by to discuss it with all the neighbors who failed to attend.
You must be sure not to leave your underwear and bra hanging around for everyone to see.
5. Lack of One-on-One Attention
Your Realtor may be motivated to sell your home, but they only can communicate with one set of buyers at a time.
If things get busy, there will be many missed opportunities – people who may have been perfect prospective buyers who never even get to speak to the real estate agent.
There is no way for an open house visit to compare to an actual home viewing with your agent.
Most visitors will probably want to return later to check if they are serious buyers.
6. Your Selling Competition Could Attend The Open House
Other people selling their homes will likely stop by and see what you are doing with yours. This only makes sense if they are in a similar neighborhood and have a comparable home to sell.
However, these visitors do you no good. They will see what you are doing and take what works for them.
If they look over your home and think it looks pretty darn good, they will probably be dropping the price of their home to be more competitive. This is an excellent example of helping the competition.
Most sellers competing against you wouldn’t schedule a showing to do the same snooping they would do at an open house.
7. Real Estate Agents Use Your Home As Their Sales Office
Don’t think for a minute the only reason an agent does an open house is to sell your property. Far from it! Many agents have ulterior motives.
Some agents may be excited to do an open house and believe it is a valid sales method.
However, many agents use open houses to meet other clients. All unwanted visitors—except for the burglars—are potential customers for the agent.
Your nosy neighbors may want to sell later, so the open house is a great place to build rapport with these people. More than anything else, the agent will meet people who are not qualified to purchase your home but are buyers nonetheless.
If you sell a $500,000 home, a buyer who can only spend $400,000 will not buy your place, right? Guess what, though—this $400,000 buyer will purchase a home at that price point somewhere else.
The agent holding the open house at your place knows this. This is a prospect for the Realtor. Does it help you in any way? No, it certainly doesn’t. Many agents know that open houses are an excellent way to look busy while seeking other clients for future work.
Getting new clients is the biggest reason real estate agents hold open houses.
8. Open Houses Rarely Result in Sales
Selling a house as a direct result of the home being open to the public rarely happens.
This is the biggest reason to be wary of an agent who lauds their open house practices. Homes are rarely sold as a result of an open house.
According to the National Association of Realtors, the number of homes sold during an open house is staggeringly low—a measly 2%.
NO – you did not read that wrong. This is not a promising number. It is low enough to make you question the worth of an open house.
The Positives of an Open House
After reading about the drawbacks of an open house, you are hopefully questioning the validity of why they are essential. The fact of the matter is open houses are not necessary to sell a home, especially in the digital age.
They are an archaic means of marketing a property. Could you get lucky and sell your home? Anything is possible, but you are setting yourself up for disappointment if you plan on it.
Open houses could benefit some sellers who work from home and have difficulty vacating the property during the week. By setting up a day/time in advance, some buyers may choose to come by on the day of the scheduled open house.
Some homeowners have moved out of their homes before selling and could care less about having their weekends interrupted by an open house.
An agent hanging around their home all Sunday afternoon is acceptable for these sellers. Bang your head against the wall and have a grand ole time!
Those of you who don’t fall into these categories and are convinced you still need one, make sure you don’t make any of the most common open house mistakes.
Be wary of not making your home as presentable as possible. Just like any other showing, your home should sparkle. Staging a home is always essential for open houses or traditional showings.
Final Thoughts on Open Houses and Real Estate Agents
If you have interviewed a few real estate agents and are choosing one because open houses are a big part of their marketing plan, then you are making a mistake!
This should not be the basis for selecting a Realtor to work with.
When deciding on which real estate agent to choose, look for these qualities instead:
- Has a dominant online presence locally—An agent who appears in competitive local searches understands what’s necessary to bring in business. Their listings look exceptional on the top websites where buyers view homes.
- Provides exceptional photography. First impressions are everything in real estate sales. You want your home to stand out online as a property people want to view.
- Uses outstanding property descriptions of your home in all of its marketing. Does the agent take the time to craft something that captures the essence of your home’s best features, or did they slap something together?
- Goes above and beyond with other creative forms of real estate marketing such as video tours, floor plans, feature sheets, improvement lists, etc.
- The agent has excellent communication skills. How quickly does the agent call or email you back? I am talking about before you hire them. This will be an indication of things to come if you select them.
- Is honest, trustworthy, and doesn’t care where their next sale comes from – What this means you will always get the best advice from an agent that doesn’t need a sale, not one dependent on their next commission check.
As you can see, the drawbacks far outweigh the benefits of an open house. Serious buyers looking for a home in your area will call to see your place with their agent.
Don’t fall for one of the greatest Realtor myths of all time – open houses are unnecessary to sell homes! Hopefully, you now understand the downsides of an open house.
Other Worthwhile Open House Resources
- Open houses benefit agents, not homeowners: More thoughts on why open houses benefit real estate agents are needed.
Use these additional resources to determine if having an open house is necessary to sell your home.
About the Author: Bill Gassett, a nationally recognized leader in his field, provides information on how anyone can attend an open house. He is an expert in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications in which he has been featured. 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.
