Do Open Houses Really Help Sell Your Home?
The simple truth is that an open house isn’t going to reduce the chance of you selling your home. Is the outcome worth the time and energy setting one up? That’s disputable.
According to the National Association of Realtors, only 3% of open house guests end up becoming buyers, Let’s take a look at the people involved with an open house, who benefits the most and who takes the hit.
Prospective homebuyers that are serious are typically paired up with a real estate agent when they’re looking for their home. This is because agents are able to help with a number of things, including providing listings and setting up tours of the homes in question. For the most part, you end up dealing with people such as neighborhood locals, people who are driving by, and those who just enjoy going to open houses for the free snacks and chance to peek inside a nice home.
Real Estate Agents
If you interviewed multiple agents before listing the home and those agents did not get it, they’ll likely drop by. It’s no surprise that agents love to visit open houses. This is where they get a chance to see different set ups and sale preparations. Unfortunately, you already have an agent that you like, so them being there is not helpful in the slightest.
Opening your door to the public is a pretty big risk. There is typically no screening process, meaning anyone can come inside and check out the rooms. It’s not uncommon for these open houses to have tons of guests, meaning the second the real estate agent is busy with someone else, the unsuspected thief can start going from room to room seeing if there is anything good.
Even if they don’t decide to steal something that day, they now essentially have a blueprint of your home if they decide to come back later.
Who Benefits From an Open House?
Unless you have tons of foot traffic in your area, you typically won’t benefit from an open houses. The one who will benefit the most is your real estate agent, as they can use your open house as a way to increase business, as well as make you, the seller, content.
For an agent, they hope to meet tons of future homebuyers who will possibly contact them in the future when they’re ready to buy a home. They also have a chance to stick their face on a large poster board in your front yard, essentially creating free advertising.
Is It Worth It?
Not really. You’re better off getting some professional photos, having your paperwork in order, and listing your home with a proper real estate agent. You will have to hope for some bites in the same way as you would with an open house, just without the risks and extra work.
Have you ever had an open house or hosted an open house for a potential seller? How did it pan out? Let us know your experience in the comments!