Home Sellers, Who Is Showing Up At Your Open Houses ?

Reblogger Kasey & John Boles
Managing Real Estate Broker with Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com Designated Broker DB29503

The purpose of open houses has changed. Twenty years ago, when listings weren't splashed all over the internet with videos, tons of photos, and even 3D images; when lockboxes weren't prevalent, and it was harder to get an appointment into a home; when a buyer's agent had to go pick up the key from the listing brokerage and bring it back after the showing, open houses had a specific purpose and were relevant. Now, yes, we do have buyers who go to an open house and write an offer, but as Kevin mentioned, had there not been an open house, there is a very high likelihood those same buyers would have seen the property anyway online, viewed the home in person via a showing appointment, and still written the offer. Therefore, it is a very, very small percentage of buyers who purchase a home because they stumbled upon a property they wouldn't have otherwise known about or been interested in, attended the open house, and then subsequently purchase the home only because of the open house. 

Original content by Kevin Vitali

For many years prior to the smart phone, the prevalence of the internet and technology, open house were a marketing staple.  But I present to you, that while there is a time and place for open houses, there are far better areas of marketing your home to effectively get a buyer.  Should you have an open house to sell your home?  I don't think it is necessary.

Buyers are previewing homes with quality real estate photographs, floorplans and other enhanced marketing materials and making major decisions online.  30 years ago the information that is available at a few clicks of the keypad were not readily available like they are now.

The two times I recommend open houses is when a home is brand new to the market and when there has been a major change like a price change or a serious improvement to make the house more appealing.  And, of course a major marketing strategy in this crazy sellers market is to only show at the open house to begin with to build up demand. 

While this is a great strategy now as the market turns it could be a strategy that backfires.

The Purpose of The Open House

Let's define the purpose of an open house.  An open house should be used to expose your house to a potential buyer that can close in the next 60 days.  Period.  But who is really showing up at your open house?

So why do some agents push open houses?

There are two reasons.

The first being a open house gets activity for the sellers and is quantifiable.

Second, open house have been a staple of marketing and agent in a community forever.  Look what the National Association of REALTORS has to say about open houses and using them to gain market exposure for the agent.  No where in this article do they talk about the benefit of the open house to the seller. 

Google "should you have an open house to sell my home" and you will find a split among major news agencies with many saying the open houses benefits the agent more than the seller. 

Open Houses Create False Hope for Sellers

Open house create a false hope for sellers.  Again open houses are great the first weekend your home is on the market especially in a red hot sellers market.  But as your home sits on the market they are far less effective.

So where is the false hope that is created?

You've scheduled your open house or houses for the weekend.  You spend half the night cleaning up making sure everything is perfect.  You get the kids and the dog packed in the car and you go find something to do for several hours.  It's work for many home sellers.

Later that day your agent calls and says their were 8 groups through the house.  You think great..... thats better than the one or two showings you received all week.  But is it?

Probably not. 

The reason being is the only qualifier for open house attendees is they get to the open house and walk through the door.  How many of those attendees are actually prepared to close on your home, or any home for that matter.  Less than you think.

Who Is Showing Up At Your Open House?

Following is an infographic on who is showing up at your open house.  While there are many reasons someone may show up to your open house, here are common reasons I hear over and over.

Also I note theives... while no one comes through the door of an open house and announces they are here to commit a crime, it happens.  One situation that has arisen since I have been in the business are people posing as home buyers seeking prescription meds, never mind the theft of small expensive electonics and jewelry.

It is certainly great you have activity at your open house but remember we want attendees that can close on your home in the next 60-90 days.

 

 

Yep, here this all the time.  So you cleaned like your life depended on it,  packed up kids that didn't want to leave the house, so a bunch of people could use your house to kill some time on a Sunday afternoon.

Personal Showing vs Open House

So maybe an actual buyer or two showed up to your open house.  But a serious buyer would have scheduled a personal showing if there was no open house.  As a matter of fact very few of my buyers go to open houses.  They want to view homes they are interested in with me as their buyer's agent. 

Rather than an open house a personal showing allows me and my home buyers to disucss the merits and drawbacks of a home as it suits their needs.  The personal shoing allows us to speak candidly and  take are time undhindered by a slew of people.

What Do Other Agents Have to Say About Open Houses?

Anita Clark  "Inviting unfamiliar faces into a private, secluded space could present a whole new dangerous situation you are not readily equipped to handle. Unfortunately, open house crimes are not new to the real estate industry."

Bill Gassett "Open houses are a waste of time for a seller and entirely unnecessary to sell a home in the digital age."

Paul Sian  "Selling a home is a process and the benefits and risks of open houses need to be discussed if that is a marketing activity that the seller wants to have in their home."

Kyle Hiscock "Are open houses necessary to sell a home?  The answer is absolutely not!  The percentage of homes that actually sell as a result of an open house is less than 2-3%.

Lynn Pineda "There used to be a time when open houses were more effective, when home Buyers were not searching for homes on the internet"

So Should I Have An Open House?

That is a very personal discussion to have with your agent.  

There are risks and rewards for everything, including open houses.  Do the benefits outweigh the drawbacks?  For me and my experiences with open houses, except for some very specific times over the life of the listing, open houses are generally not worth the effort many home sellers have to put into them.

Given that less than 3% of home are actually sold at an open house and the fact that many of the attendees aren't even qualified to be there, doing open houses weekend after weekend is just a waste of your time and your agents time.  Look towards other means of marketing rather than focusing on open houses.

A serious qualified buyer that is in the market will schedule a showing if there are no open houses scheduled.  Plus if a buyer sees your having a ton of open houses they just may wait until the next one, but in the meantime they could find a house they like and forget about yours.

If having open houses is inconvenient to your family, skipping open houses will not effect your sale. 

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Rainer
74,538
The Romero Team
Re/Max Elite - Albuquerque, NM
Re/Max Elite

good points

Oct 01, 2018 08:17 PM #1
Rainmaker
2,741,284
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Thangs has change so much in our business but we have to keep up with what is new.

Oct 01, 2018 08:24 PM #2
Rainer
424,578
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Kasey & John,

Sometimes, you get lucky, but they are definitely not as effective as they once were.

Oct 01, 2018 08:59 PM #3
Rainmaker
2,583,369
Nina Hollander
Coldwell Banker Residential Brokerage | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Kasey... this is a great reblog. I read the original. I'm not a believer in open houses as they don't sell homes at a rate high enough to justify the time spent at them. And with professional photography and internet marketing, in effect, you can have an open house for your listings 24/7 these days.

Oct 02, 2018 04:44 AM #4
Rainmaker
2,815,568
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Kasey and John. Open houses are a local play. I am not a fan but in some areas they work well. I was never in one of those areas. Enjoy your day!

Oct 02, 2018 04:50 AM #5
Rainmaker
689,954
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Thanks @theromero team. 

Oct 02, 2018 10:09 AM #6
Rainmaker
689,954
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Will Hamm definitely true. Things have changed significantly how real estate agents do business in the last 15-20 years and they will continue to change.

Oct 02, 2018 10:10 AM #7
Rainmaker
689,954
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I'm with you Nina Hollander. -Kasey 

Oct 02, 2018 10:11 AM #8
Rainmaker
689,954
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

@dorte times have changed and the way we do business has as well. Thanks for commenting! Don't know why I am having trouble tagging today. -Kasey

Oct 02, 2018 10:12 AM #9
Rainmaker
689,954
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I agree Wayne Martin, it is local. I have heard, for example, of a place in southern California that still doesn't use lockboxes (electronic or otherwise) and homes are appointment only with the listing agent required to be there - at that is standard/common practice. I totally get how useful Open Houses would be in that market and would absolutely do them - and buyer's agents would be joining their clients in going to the open houses as well, I'm sure. I know there are other reason and circumstances to have them, but I think Kevin does a good job to describe why sellers really need to know the risks vs benefits in their individual markets and for their individual homes and circumstances. -Kasey

Oct 02, 2018 10:15 AM #10
Rainmaker
3,698,075
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kasey, thanks for the reblog, as I missed the original.   I have to go into great detail with a homeowner as to why most have an open house, and it is not usually to actually sell the home.   When it is occupied, I don't want the liability, and the homeowner usually says they don't want an open house.

Oct 02, 2018 11:01 AM #11
Rainmaker
2,970,601
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hello Kasey and John --- this topic varies by area. Even in a very specific area youwill find a difference of opinion. A good reblog. 

Oct 02, 2018 05:07 PM #12
Rainmaker
2,590,478
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Good choice for a reblog Kasey & John Boles and I am going to echo Michael Jacobs comment that this does vary by area. 

Oct 02, 2018 07:28 PM #13
Rainmaker
689,954
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

We discuss this with all of our sellers at the listing appointment as well Joan Cox.  

Oct 03, 2018 09:42 AM #14
Rainmaker
689,954
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Agree Michael Jacobs. Different price points too.   

Oct 03, 2018 09:43 AM #15
Rainmaker
689,954
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Lisa Von Domek, I agree that it is local and micro-local. If you didn't read my comment (#10) that is an example I totally get where open houses would be important. Price points or availability for appointments or listing agent must be present kind of listings may be additional reasons. 

Oct 03, 2018 09:45 AM #16
Rainmaker
175,133
Kevin Vitali
EXIT Realty- Massachusetts Short Sales & Residential Sales - Tewksbury, MA
Helping Massachusetts Home Buyers and Home Sellers

Kasey & John Boles thanks for the reblog.  Most of the defenders that defend the open house state that it is great for marketing themselves....  which it is.  But sellers have been trained to think open houses work when in most cases they don't.  How many times have you sat at an open house with no one coming thru...  or worse yet have 8 couples come thru without one being qualified to buy the home.

Oct 03, 2018 11:24 AM #17
Rainmaker
689,954
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Yes, it is Kevin Vitali. There is definitely a purpose for open houses, but we just need to be honest about what the purpose is. -Kasey

Oct 04, 2018 02:12 PM #18
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