Open Houses: Are They A Good Idea?

Not all agents encourage sellers to have open houses. Open Houses allow the public to visit a home for sale at a scheduled time without an appointment.

Do I think it is a good idea? Well, that depends. If your home is in a luxury price range that very few buyers can afford, an open house will likely attract more voyeurs than buyers. They may just want to check out what a home in that price range looks like. Also, if your home is in a low traffic area and off the beaten track, it is unlikely to attract many visitors, in which case an open house may not be worth the effort or inconvenience.

For the more typical suburban home, in areas such as Washington Crossing, Newtown and Yardley, an open house can be beneficial.

Few homes are actually sold at open houses. I’ve done it, but it is rare. What I do find, however, is that buyers who are considering a house, and have seen it with an agent, will visit an open house to more thoroughly examine it. They may have questions that a listing agent can easily answer, but would have gone unanswered if they did not drop in. I have had many visitors to open houses wind up being the buyers of that house. Would they have bought it anyway? Perhaps, but maybe not.

I have also worked with buyers who live locally and want to move up to their dream house. They are loyal to me as their agent, but are very particular and become apologetic about the number of homes they ask me to show them. If they can view a property at an open house, they prefer to do so. If an open house is not scheduled for a home they wish to view, they will call me to show it to them. Would they make an appointment and eventually view the property, anyway? If it doesn’t sell quickly, they probably would view it eventually, but their ability to view it sooner, rather than later, might result in a higher sale price for the sellers.

One reason some agents give for discouraging open houses is that open houses allow people who have not been approved for mortgages to view the home. While this is true, there are not many people who so enjoy viewing homes that they do so as entertainment. Most open house visitors have some interest in homes in the area and price range they visit or they wouldn’t bother. Also, some buyers have demanding jobs and cannot look at homes during the work week. They like the low pressure opportunity to visit homes on a Sunday without an appointment. As far as security is concerned, small objects of value should be safely hidden during open houses and during any home showings.

An open house hosted by the listing agent is most desirable because the listing agent’s primary interest is to sell that house. A listing agent should know a lot about the house and be in the best position to present it positively. If at all possible, sellers should request that their listing agent host open houses themselves rather than having another agent do it. Agents, other than the listing agent, may volunteer to hold an open house for a listing agent in order to possibly sell that house. If the buyers are not interested in that house the non listing agent may have the additional opportunity to sell the buyers another property. A non listing agent does not have as great a motivation to sell your home as does a listing agent, and does not have as great a knowledge of your property. Therefore, the listing agent is your best representative at an open house.

Attractive homes in attractive neighborhoods will sell during a strong real estate market, and an agent will not have to use all the tools available to him or her to sell your house. Attractive photographs, a for sale sign and posting the property on the MLS (Multiple Listing Service.) may be all that is necessary.

If the market isn’t particularly strong, and there are a number of other homes a buyer can choose from, agents should offer sellers all the tools available to them and holding open houses is one of them. Unless sellers are uncomfortable with open houses, or will be significantly inconveniences by them, why not utilize this tool to sell your home? Homes generally sell faster and for more money if there is competition in the market. The more people who view a home, the more likely it will sell quickly and for top dollar.