Open Houses: Are They Effective? Are They Necessary?
I recently conducted a market analysis for a family who wants to sell their home. They asked me whether or not open houses are effective or necessary. Real estate agents get this question from potential clients all the time. It’s a good question, yet, I’m not sure it’s the right question. The right question is: If you conduct open houses, what will happen? It’s a Steven Covey thing: “Begin with the end in mind.” The answer should be: “They help sell your house.” Well do they? Check out the video below for one possible outcome:
Funny, huh! Look, I have years of experience listing homes and holding open houses and I’ve drawn my own conclusions about their effectiveness (purpose) . I’ve also asked colleagues with decades of experience what they think about open houses. Here’s the concensus:
In today’s marketplace, open houses do not help sell a home. The last decade has brought technological changes to the marketplace that have essentially eliminated the need for open houses. When my wife and I were looking for our first house (in the late 80’s) open houses were the only way one could approach a neighborhood. Realtors had to spend time at broker’s opens and regular Sunday open houses to examine the inventory. Today, the Internet has transformed this experience with on-line photos, virtual tours (in HD photography!), personalized home websites, etc.. The average buyer has access to a tremendous amount of information regarding particular homes, neighborhood/city statistics and demographics. Certainly, 99.99% of consumers will visit homes to touch and feel the inventory; however, the fundamental mechanics for doing this have changed.
So what does help sell a house? I believe that sellers and their agents need to spend more time discussing and implementing the right marketing campaign for a home. This should include but is not limited to: print media, addition to the Multiple Listing Service, yard sign and directional signs (if they are permitted………they aren’t legal in Kenmore), flyers, etc.. The real important marketing occurs in a whole new array of Internet/cyberspace arenas, especially through Internet Syndication. In the future, I’ll explain more about Syndication. Think of it as blasting your home out on the Internet to a huge number of potential customers. Unfortunately, many agents have no idea (or money) to accomplish this.
Ultimately, most agents like to hold open houses to meet new clients rather than actually sell the house they are holding open. The bottom line is that very few homes are actually sold because the agent held an open house. And a final thought: Today, fewer and fewer homes are being held open. In my community, Kenmore, WA, very few agents hold open houses on the weekends with the exception of the new-construction sites.
