Who Do Open Houses REALLY Benefit?

“Open House” is one of the traditional real estate tools used by agents. It's also
controversial, because sellers often think it's a benefit only to the Realtor. But who really benefits? 

First, let’s remember that NO tool will sell an over-priced home. Buyers are always
comparison shoppers, and even more so in today’s market environment.

Some sellers do not like to have Open Houses. They may feel it is too intrusive, or perhaps they don’t want “nosy neighbors” marching through their home. They also think there is almost no chance a real buyer will walk into their Open House. But even with professional photography and virtual tours, buyers still feel the need to “kick the tires” and “feel” the home. Recently I had a listing that had not generated any offers. After holding just two Open Houses, three different buyers came through and made offers. Two of the offers did not pan out but the third was the charm. Both sellers and buyers are happy.

Why had these buyers not discovered this home before? One of the main reasons is that homes are not a consistent commodity. Even model matches have different
appointments, yards, views, etc. Another factor is that Realtors will show their clients homes that match the criteria they have been given. What many buyers discover is that they walk into an Open House that did not match their written criteria, but some aspect of the home pushes their emotional buttons and they  want to buy it. It would never had been shown to them based on criteria alone.

How about agents? Some agents who are very busy think that Open Houses
are too slow or unproductive, so they discourage sellers from using this tool. It is a fact that buyers tend to come into homes that are more expensive than they can afford. For that reason the Realtor may find a buyer who wants to buy a smaller home or even a larger home and the Realtor picks up a client. This will of course benefit the Realtor. But holding an Open House at a more expensive property may produce a buyer for the first home. It's “networking” in order to produce a buyer.

After over 16 years in the business I think it is safe to say that 20 to 25 percent of our listings have sold as a direct result of Open Houses. So, if you're selling your home, give Open Houses another try.