Do Open Houses Help Sell Your Home?
By: Diane Tuman, Zillow Content Manager | August 22, 2007
Today’s Wiki Wednesday Feature: Do Open Houses Help Sell Your Home?
Wow, talk about a controversial topic. Do open houses really work? Or is it a good idea that is no longer effective? Can your house get ripped off? Does a Realtor put themselves in danger — possibly killed?
Here’s a potential scenario: You are selling your home and you expect your Realtor will hold an open house as part of the traditional means to market your home. The broker’s open is held midweek, and then the big open house is held over the weekend for the masses of people who want your house. In reality, it may be more like this:
- Your snoopy next-door neighbor comes in to “see what the house is like.”
- A few looky-loos come in to compare your home’s value to another one they’re looking at.
- The Realtor representing you might get a lead or two out of holding the open, but no real buyers.
- One or two “underhanded” folks will come in and possibly rifle through your drawers, maybe take something of value.
- And, lastly, God-forbid, someone is using your home as part of their house humping high.
Sickened by this scenario? Chris Guidry, the featured author of this week’s Wiki Wednesday post, “Do Open Houses Help Sell Your Home?” is a little skeptical, too. Chris happens to be a Realtor and writes openly about the mentality of open houses. I commend Chris’ candor and bravery to tell it like it is.
So, what to do instead? Chris suggests a virtual tour and if potential buyers are really interested, the next step can be a visit to the house. Also, she writes that only qualified buyers should be taken through, which will eliminate a lot of the riff-raff. I must say that if I am ever to sell my home again, I will think twice about the whole open house strategy.
Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.
- Stumble it!
- Categories: Real Estate, Wiki Wednesdays, Zillow
Comments
15 Comments so far
Enjoy this post? Subscribe to the Zillow Blog feed or get updates via e-mail
Around the PF Blogosphere: August 22, 2007 | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing on August 22, 2007 6:24 pm
[...] Blog wonders whether open house help sell your house. I say yes, though I have never sold a house [...]
Rebecca Levinson on August 23, 2007 6:23 am
When I sold my home 3 years ago, we had an open house, minimal activity and zero prospects. Also, in the 13 years I have been working with real estate agents, not one has professed Open Houses to be a great marketing tool, and sometimes have in fact referred to holding open houses as a “necessary appeasement” for sellers.
Rebecca D. Levinson- http://www.connect2agent.com
HomeInput on August 23, 2007 8:50 pm
Wow. I’m surprised at the negativity around open houses. I have found a few real estate agents at open houses that I have used. I have also put a few bids on houses I have found when visiting their open house. Just offering my experience.
Carole Wall, the Wall Team for Prudential on August 28, 2007 8:16 pm
You asked for it! I’ve got it. From my Work here in the Puget Sound Area, I have sold 23 homes from open houses - not always the home I was in, but this past weekend ( just to speak in the current market) two offers were written on homes that I had Open Houses in.
Depends on the agent’s creativeness, and desire, and the buyer’s response to that agent. Many times, the buyer goes to the available Open House, and then retrieves his or her own buyer’s agent from their weekend “off” and writes an offer. When was it “sold?” . My answer: from the house being available thru the open house. Maybe agent “can’t remember my agent’s name”, wrote the offer, but the buyer “came, saw, and decidedly bought” at the Open House. My personal feeling is this: If your house is for sale, and it is not being held open, you will never know how many possible chances to sell were missed.
Joshua Harris on August 31, 2007 8:16 am
ABSOLUTELY NO, they do not help sell homes!
Check out this article that quotes an NAR study that found that open houses were effective only 2% OF THE TIME.
http://finance.yahoo.com/education/real_estate/article/101456/10_Things_Your_Real_Estate_Broker_Wont_Tell_You
TeamCollins on September 1, 2007 3:02 pm
There is a novel approach to open houses in the mountains. It’s primarily for realtors, who like to eat! Rarely are there any buyers, and it’s to appease the sellers. Personally, never found it to be advantageous, and prefer to be showing property to buyers on my own, privately.
John Schneider on September 2, 2007 2:22 pm
I like open houses for a few reasons. Most important, I’ve sold about 25% of the houses I’ve held open, not a great track record, but not bad. Especially considering that in most of those sales I ended up also representing the buyer (who I met at the open house) who did not have an agent. So those buyers may not have seen and bought that house if it wasn’t open. I also like them because it’s the best way I know of to meet, talk to and learn from people who are out there looking at homes for sale - to get the pulse of what’s on home shoppers minds. I also get a good fix on what those shoppers think of the house we’re in - and I prefer that feedback to a realtor tour anyday. They may not buy the house and I may not ‘pick up’ a buyer, but that doesn’t mean it wasn’t a successful open house. I guess it depends on where you are and how you approach it. I work in the Foothills area of Tucson, AZ, and we get a lot of people from California, the midwest, the northeast, and elsewhere. A lot of them don’t have agents yet, and they’re thinking of moving or buying a second home here - we have a lot of second homeowners. And many of them are friendly, interesting and full of questions. So it’s usually a fun and informative afternoon, if you just throttle back, take it easy, and enjoy the people you meet.
Sharyn Germ on September 3, 2007 7:27 am
With all the homes for sale in just my subdivision, I hesitate to even put a sign in front of my house, much less have an open house. It seems that the only people around here coming to an open house is realtors and neighbors! In view of such a poor response, I’m concentrating on advertising through my website at mountdorahomeforsale.com and in Zillow.com. Constantly updating my website should keep it fresh and search engines interested.
Jonathan Dalton on September 12, 2007 2:36 pm
If open houses worked, there would be no homes for sale by unrepresented sellers left on the market. Plant the sign, open the front door and let the buyers roll through.
Most agents who profess to open house success are thinking of buyers gained who eventually bought a different house, not the one held open.
REALonomics on September 13, 2007 10:50 am
Open houses are a market model that worked well in the Broker-Centric Era of the industry, that is, when consumers had to drive around neighborhoods looking for signs, newspaper in hand.
Open houses should be thrown on the heap of discarded practices, along with MLS books, office tours and print ads.
There’s only one thing that is going to cure this market and it is under the control of the Sellers…price.
Hojin on September 16, 2007 7:01 am
Open Houses are not effective. I’ve sold a few homes with an open house and it can work but I think agents have better options for their time.
Its a good alternative if the agent has no business and needs to do what he can. An internet connection so you can some desk work can make it better.
If open houses were really that effective then no would need brokers to sell their home and the owners would just have open houses.
Warren Jones on September 25, 2007 12:47 pm
As a home owner, I have sold two homes without
having an open house. Both homes sold right away. The house I’m trying to sell now has had several open house events since it was put on the market, no interest shown. I think if I could find a motivated agent it would sell.
Pete Vandermeir on April 23, 2008 1:29 pm
We held an open house, as part of marketing our 4,400 sq ft home, 6 bdrms 56baths, 1 acre, many trees, 4 fireplaces.
People stared at my wife’s antiques and the electronics in the game room, the big screen, a rifle collection in a locked display case, people looked at imported furniture. There were more people than we could watch, too many rooms on two floors. Someone went through a drawer and stole some antique silverware stored there,
Most of those visitors probably could not even even have afforded the property. It was entertainment to them. Maybe the listing agent got some leads.
Never again. Pictures on a website, then pre-qualify and know who is visiting, then do it by private appointment showings.
Torrance For Sale By Owner: AKA now interviewing Realtors | Rocky MLS on October 24, 2008 7:32 pm
[...] as easy as placing a sign out front, putting an advertisement in the Sunday paper and hosting an open house! There are many details involved in the process of a home sale in Torrance CA including but not [...]
How To Sell Your Home | Sell My House Quickly on March 14, 2009 1:46 pm
[...] Do Open Houses Help Sell Your Home? [...]