Do Open Houses Sell Homes

Imagine you are a home seller. You want to sell your home as quickly as possible and for the most amount of money. You realize it is in your best interest to hire an experienced REALTOR. You interview three top agents and they all will list your home for the same price commission. In addition, they will take photos, take room measurements and write a colorful description of your fabulous home. They all will post the listing on the local MLS, Craig’s list and Realtor.com. You like all three, but REALTOR # 3 says she will have an open house at your home every Sunday until it’s sold. You choose #3 because she is going to do that one extra thing to get your home sold. Did you pick the right agent? While we don’t know an exact number to say how many homes actually sell as the result of having an open house, the range seems to be between 2% - 5%. While it does show that ‘some’ homes sell as the result of an open house the chances that your home will sell from a buying driving by and stopping in after seeing the balloons outside are slim. So why do REALTORS do open houses? Reasons to hold an open house (for the agent): 1 The seller asked them to hold one. The number one reason experienced agents hold open houses is because they are trying to please their clients. No matter what the agent says, the home seller believes an open house will help sell their house. 2 The agents are hoping to find new buyer clients. There is a much better likelihood that an agent will find a couple who are not in a contract with another agent than selling your home. This is a chance for the agent to find a buyer who is a serious buyer but does not have an agent. 3 The agent may get another listing out of it. Most open houses will attract nearby neighbors who are curious about what improvements have been made to the home and what the asking price will be. These neighbors may be thinking about selling their home in the near future and have not decided on a listing agent. In addition, there are some security concerns when holding an open house. Imagine your agent did a fantastic job at advertising your open house and they have lots and lots of home buyers viewing you home. Good news right? Now imagine your agent is talking to a good potential buyer in the kitchen about the new appliances while another couple is upstairs in the bedroom going though the jewelry box. While open houses don’t give you the best odds to get your home sold they have been instrumental in getting homes sold. My only advice is to be wary of an agent who insists on having regular open houses. The truth is, the agent has more to gain by having an open house than you do.