According to the National Association of Realtors only 1 in 400 homes sell due to an open house. Why are open houses so ineffective? Because serious buyers don't go to open houses; they schedule showings through an agent. Think about it, if someone is not serious enough about buying a home to call the agent to schedule a showing, then how serious are they? NOT VERY. These are the people that come to open houses.

If open houses are such a poor way to sell homes, then why do agents do them? Is it because agents still somehow believe that open houses work? New agents might, but seasoned agents know that open houses don't work. Now we are back to the same question, "Then why do them?" Here's a countdown of the top three reasons agents do open houses:

3. Open houses are cheap. It's cheaper to put up an open house sign than it is to pay for effective advertising.

2. To placate their seller. By doing an open house they can demonstrate to their seller that they are at least trying to sell the house.

And the number one reason...

Since the majority of the people that come to an open house are going to be neighbors, it is the best way to find other people that may be looking at selling. That's right, your agent is using your house to increase their business.

Do I do open houses? No, I don't. Instead I have a comprehensive marketing plan that includes professionally designed color flyers, mobile website, virtual tour, upgraded listing on Realtor.com, direct mail, agent prospecting, home staging, a huge Internet presence, a trade-up program, etc, etc, etc. I do the things that actually work.

But if a seller is convinced that an open house is what is needed to sell their home, then I will let them do open houses and if they find the buyer then the commission I charge is only 1%. If that is not enough incentive for the seller to do an open house, then they must not be very convinced of the effectiveness of open houses.

Trumm Team - Alliance Real Estate, Omaha, NE

Your Home Sold within 120 Days or I will Buy It!