WolfTeam News

Do Open Houses Sell Homes?

Your first exposure to a real estate agent was probably when you bought your first home.  Based on the experiences you formed with the first agent you worked with, you formed a generalized impression about what it is that agents do to find buyers and sell homes.

When it comes time to sell your house, you probably expect your listing agent to do the same things that your agent did when you were looking to buy a home back then.

If it’s been 10 years or more since you were a buyer, you will be amazed at how much things have changed; for instance, back in 1995 only 2% of home buyers used the Internet to look for a home (according to the National Association of Realtors statistics poll).  In 2009 94% of buyers said their first exposure to the home they bought was from an Internet search.  Another staggering difference is how print advertising has changed.  Newspaper and printed monthly magazines are expensive and account for very few sales.

When it comes to open houses, less than 2% of homes sell as a result of an open house, according to the National Association of Realtors, just slightly behind print advertising.  The Internet with its targeting search, good quality photos and virtual tours is how people look today.

Open houses tend to interest tire kickers, neighbors and people who want to entertain themselves by roaming through someone else’s home. Often they are not qualified, or even know what the house is worth.  They are just trying to get an idea what kind of house they can get in the area – but that won’t help you sell your house right now.

A quality virtual tour and lots of good photos will help you sell your home and are going to give the buyer an accurate representation of what the house looks like on the inside.  Yes, Internet shopping does significantly cut down on the foot traffic for a home listing, but the ones that have gone through the virtual tour and are still interested in it are far more likely to be ready to make an offer when they see the home in person.

Do you wonder why agents do open houses?  There are several reasons, really.  In new construction homes, they are more effective than with existing houses so builders may require them when they list. Some agents do them simply to show the seller they are doing something. For newer agents without customers, it can be an opportunity to find a buyer and help them find a house they qualify for.  These agents are using the house as an office to help them find buyers.

Would a Realtor have open houses on their own home?  Most likely not; most agents agree that while you might be able to find buyers for another property, you are very unlikely to find the buyer for the house you are holding open.  Many agents now refuse to hold open houses, considering them to a waste of time and even a security threat; most sellers want to know buyers have been pre-qualified before they open their door to them.