Dispelling Myths About Open Houses
In today’s video, my sister and I addressing open houses. Many sellers ask me if I offer to host open houses on their homes. I answer honestly and with the data I have gathered. Do you think having an open house is necessary? If so, why? Do you actually know who benefits the most from an open house? Before you answer, watch my YouTube video below!
Many real estate agents love to emphasize that if you list with them, they’ll do one or many open houses “until your house is sold!” This is just feeding the myth among homeowners that open houses are a great way to market your home. In reality, according to the National Association of Realtors, less than 2% of buyers come from an open house! I bet your listing agent didn’t tell you that, right? Even on HGTV rarely, if EVER, gets a buyer for the open houses they perform! If an HGTV budget can’t do it, there’s only a 2% chance anyone else will.
So who benefits from open houses? Experienced agents know open houses benefit the AGENT; that’s why they take the time to do it. For some, it’s a great way to meet potential clients to grow their own database. An open house is yesteryear’s method of marketing, i.e., before the Internet. A real estate broker insisting on an open house is using YOUR home as a pop-up shop for their own interests. If they don’t know that it doesn’t sell your house, they’ve not been in the business long enough
The 4 Types of People Who Actually Visit Open Houses
1. Neighbors, Lookie Loos & Passersby. Leisurely Sunday drives to peruse open houses is practically a national pastime in America. Many people simply love looking at other people’s houses, especially nicer homes. (Heck so do I!) These people might be driving by the home and notice the open house sign. They usually are not in the market to buy a home and are simply curious. Often it’s neighbors that are thinking of selling and what to see their competition (not a bad idea for future sellers). If they were serious buyers, they’d arrange for a private viewing.
2. Real Estate Brokers. This is especially true of newer agents who are educating themselves on their market. After all, your home is our inventory. It doesn’t mean they have a serious buyer; if they did, they’d arrange for a private viewing.
3. Future Home Buyers. That sounds promising! Many first-time home buyers start by touring open houses to figure out which neighborhoods they like, how much house a money buys, or they’re just dreaming of the future. It gives them good ideas for when they are ready – which is not now. They are typically months away from being serious buyers. Again, if they were serious buyers, they’d arrange for a private viewing.
4. Robbers, Thieves & Criminals. What better way to case out a home than to attend an open house in broad daylight when they know the homeowner isn’t home and the agent can very well be busy with another lookie loo? That gives them free reign to peruse your home to see if it might be worthwhile to come back later.
Lastly, it’s dangerous for us as agents to be a sitting duck inviting unvetted strangers into your home while we’re alone. I don’t mean to be an alarmist, but the fact is, women AND at least one man have been attacked or murdered while conducting open houses. The risk is not worth the super low chance of selling your home.
The good news is, your house is SAFELY an open house 24/7 online when listed with me!
Plus you’ll pay just 1.5% TOTAL if I work with your buyer. Why would anyone pay more?
This is less than FSBO! Ask me how.