Holding an open house has been a marketing tradition for decades in the real estate industry. You open up the home with hopes that a flood of potential buyers will come see what your living space offers. And then, cross your fingers, one of them will make an offer. Do houses sell as a result of an open house? Sure, sometimes, but mostly they don’t. Most frequently, a home sells because it was marketed on the internet to both brokers and buyers, a buyer’s agent vetted whether it was a true potential for their client, and that agent arranged a private showing.

The internet’s role in how buyers search for homes has dramatically changed the need for an open house. Serious buyers use online photos and listing information to create their short list of favorites and instantly weed out homes with unappealing features. Then they have their agent arrange private showings. Because buyers use the online process of vetting homes and then request a private showing from an agent, the open house concept has gotten somewhat stale. Certainly not all homes have the same marketing needs, so carefully consider whether an open house is a good strategy for yours. Here’s an honest look at the pros and cons.

Open House Pros

Convenience for Buyers. For some, the home buying process starts with curious interest, but potential buyers haven’t made a strong commitment yet nor made the leap to meet with a Realtor®. Opening up your home offers them a convenient way to view the possibilities without an agent and perhaps ramps up their interest in buying sooner.

There’s nothing like seeing it in person. Internet photos are the primary way to create interest for serious buyers, but nothing replaces seeing a home in person to make a decision to buy. An open house is a non-committal way to view homes in person since arranging an appointment isn’t necessary. Buyers just need to show up within a two- to three-hour window designated by the listing agent.

Additional exposure. An open house is one more exposure opportunity in a larger marketing strategy that probably also includes well-placed signage, excellent online photos and descriptions, and promotion to the local broker community. While there’s no one magic tactic to sell a home, the additional exposure could bring in a sales lead that results in an offer.

Open House Cons

Nosy folks and unvetted buyers. Open houses notoriously attract nosy neighbors who simply want to compare your house to theirs. Or people with no intention of buying come because it’s a fun way to spend time on a weekend, especially if yours is an attractive higher-end home. Also, buyers who aren’t qualified to afford your home will look because they haven’t been pre-qualified to purchase by a lender and don’t know their purchase price limit. Most agents who take their clients on private showings know their client’s price ceiling and have a copy of their lender pre-approval letter.

Unlikely to result in a sale. A small percentage of homes sell during an open house, but most sell when a buyer arranges a private showing. If you were to ask several agents whether open houses work, you’d get very different answers depending on who you spoke to. Truthfully, in most circumstances, an open house is more likely to benefit an agent than a seller. Why? Because they can meet new client prospects of buyers who come through who decide they aren’t interested in the house. That doesn’t mean all agents hold open houses for this reason. Those who have other avenues of getting clients don’t depend on open houses, but they often hold them because the seller expects it.

Danger of theft. Unfortunately criminals can use an open house as an easy opportunity to lift valuables or scout out a house for a later break in. No one likes to think this way, but it’s a reality that can’t be ignored. A listing agent can’t always keep track of every family member who walks in or stop someone from taking something. If you do hold an open house, take the necessary precautions of getting your valuables out of the house first.

Additional stress on the seller. Keeping a home clean and free of clutter for showings is stressful enough, but it’s necessary to make a good first impression. Adding on multiple open house events can add to the selling stress. And too many open houses can give the impression that something is wrong with the house.

Weigh the advantages and disadvantages of open houses carefully. You might decide that your neighborhood is well-suited for an open house that leads to a sale, or you might decide that there are other marketing efforts that are more important to focus on. While your Realtor® will have an opinion on the matter, the decision is ultimately yours.

Platinum Service Realty