Is Holding an Open House For Your Los Altos Home Going to Help it Sell? The Pros And Cons of Open Houses!
There is a home for sale in my neighborhood that has been on the market for about four months. The home has had an open house almost every weekend. We are talking double digit numbers of open houses and counting! Why would a seller and/or listing agent continue to hold an open house every weekend when it appears (in this case) they are not working? In short, do open houses sell homes?
Is your open house selling your home?
To answer this question, I think we first need to look at who attends open houses. Attendees may include:
- Competition – other homeowners whose houses are also for sale. They’re checking out how their home compares.
- Dreamers – people who would like to live in the house (neighborhood), but don’t qualify financially.
- Seller Spies – friends of the seller, or the seller himself/herself, who want to see how the open house is going. Hint to sellers..let your agent do what you hired him/her for.
- Looky-Loos – neighbors looking for interior design, landscaping, or remodeling ideas.
- Nosy people – these attendees have waaayyy too much time!
- Actual bonafied buyers who are ready, willing and able to purchase the home – these are the target market for an open house.
Seller Benefits: Market Exposure
- An open house allows buyers and potential buyers access to the home to see whether it is the right home.
- Some agents can’t show their buyers a home due to scheduling conflicts and an open house provides accessibility for these buyers.
- Open houses allow buyers who have already seen the home the opportunity to go back and spend more time evaluating the property and neighborhood.
An ancillary benefit to the seller is the listing agent may get feedback from open house visitors that might help in the ongoing marketability/sale of the home.
Seller Drawbacks:
- Security – prescription drugs, electronics, jewelry, cash and other small items have been stolen during open home showings. Thieves have been known to “case” a home during the open house only to come back later and steal items from the home.
- Hassle factor – the homeowner has to be away from the home for 4-5 hours on a Saturday, Sunday or both.
Agent Benefits:
- Allows agent to pick up buyers/sellers who have not committed to another real estate agent.
- Allows agent to maintain a high profile in the neighborhood of the open house.
- May sell the home off of the open house. NAR statistics show that 2-4% of all home sales are initiated from an open house. Not a great percentage!
- Shows the seller that the agent is “actively” marketing the home. Many of the duties performed by agents aren’t easily “document-able.” An open house provides a verifiable example to the homeowner that the agent is doing something to sell the home.
Agent Drawbacks:
- Inefficient use of time – many listing agents have newly hired agents sit at open houses for them because their time is better off spent elsewhere.
- Personal security issues – agents have been assaulted/killed while hosting open houses.
Prior to the rise of Internet use in the home search process, open houses were vital in allowing buyers to browse/view homes. As online home searches evolve, the function of the open house has also evolved. Virtual tours/multiple photos have become more commonplace. Open houses are used by savvy Internet buyers to confirm that the house they saw online is the dream house they have been looking for. Unfortunately, the Looky-Loos still keep coming…
Lastly, holding open house too often tends to show to potential buyers that the home is market worn and/or a tough property to sell. So give it a rest.
How Often Should You Have an Open House? My recommendation!
- The first two weekends of the initial listing period.
- No more than once every three weeks after the initial listing period series of open houses.
- The first weekend after any price adjustment.
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