Do Open Houses Sell Homes, or Is There a Better Strategy?
Thinking about selling your home and moving on to something new? The idea of hosting an open house can feel overwhelming, from having so many strangers looking at your personal space to the related costs. You might even find yourself asking your realtor, “Do open houses sell homes?”
While they have their benefits, open houses aren’t required to successfully sell a home, especially in the current housing market. Most real estate agents agree that open houses are unnecessary.
Let’s take a closer look at why you don’t need an open house to sell your home and what you can do instead.
What Percentage Of Homes Sell From An Open House?
While an open house sign might attract some attention, only a small percentage of buyers, 3-4%, buy strictly from an open house.
Instead, most buyers use open houses as a part of their home-buying strategy. The majority of buyers begin their search online using different real estate websites or apps. They’ll also start working with a realtor, who can give them advice for buying or even selling a home, and give them access to listings not available online.
Why Open Houses Are Worth It
Before we explore the disadvantages of open houses, let’s see the value of hosting one.
Broadens Exposure to Prospective Buyers
Open houses significantly increase your property’s exposure to the home-buying market. Instead of limited showings with pre-screened individuals, you’re inviting a diverse group of interested potential buyers. This wider reach can broaden your pool of serious offers, potentially speeding up the home-selling process.
Provides Immediate Feedback
An open house can be helpful for homeowners and realtors since it provides immediate feedback from prospective buyers. They can see how the property looks to outsiders and what improvements can be made to make it more appealing to potential buyers. Having this perspective can help you adjust your selling strategy and attract the right buyers.
Creates a Sense of Urgency Among Buyers
Hosting an open house can create a sense of competition among buyers. They may feel pressured to make an offer sooner, and possibly at a higher price, if they see other buyers expressing interest in your property. This competition can result in several offers coming in at or maybe even above asking price, which benefits you as the seller.
Why Open Houses Aren’t Worth It
Remarkably, 63% of top agents who participated in a recent survey said they don’t always recommend sellers host an open house. Here are just a few downsides of open houses.
Open Houses Attract Unqualified or Uninterested Buyers
Since anyone can attend an open house, they often attract unqualified buyers who aren’t pre-approved for a mortgage. This can be a waste of your and your agent’s time.
In many cases, nosy neighbors attend open houses just because they want to see the inside of your home and see how it compares to theirs. And you also might attract a curious passerby who has no interest in putting in an offer.
Open Houses Can Lead to Break-Ins and Vandalism
When you host an open house, you’re opening your doors to anyone who walks in, which can carry risks. Vandalism is a concern you need to think about. Also, if your home is vacant, it can become a target for a break-in since intruders can scope the place during an open house.
Open Houses Cost a Lot of Time and Effort
While open houses have long been a traditional part of selling a home, they demand a significant investment of both your time and money. From deep cleaning and home staging ideas to marketing and dedicating several hours to learn how to host an open house, then hosting it, these efforts can add up.
Open Houses Have Potentially Low ROI
As we mentioned above, an open house requires a significant investment of both time and money, and there’s no guarantee it will result in an offer. This could result in a low return on your investment (ROI). Given this uncertainty, it’s wise to consult with your realtor. They can provide expert advice on selling your home for the best price.
What You Can Do Instead
There are alternatives to open houses that can help you quickly sell your home to a qualified buyer. Here are a few of your options.
Deferred Showings
This is also referred to as delayed showings; these are held several days after you list your home (as opposed to right away). Your home still appears in the MLS, but buyers have to wait to see it. This can build up more interest and lead to a bidding war, since all of your potential buyers are seeing the house at the same time.
Broker’s Open House
A broker’s open house allows other agents to tour your home on behalf of their clients. Brokers and agents can provide constructive criticism for you and your agent, which can make it easier to sell your home. Unlike open houses, there are no potential buyers involved in a broker’s tour.
Virtual Tours
Many listings now use virtual tours, allowing potential buyers to explore a property from their homes. These can be interactive 3D tours or video walk-throughs that buyers can look at any time.
Live-Streamed Open Houses
By using Zoom or even Facebook Live, real estate professionals can host open houses in real-time, allowing remote viewers to ask questions and interact with the agent.
Are Open Houses Necessary?
As we mentioned earlier, most buyers begin their home-buying journey online. They not only look at different homes, but they also research different neighborhoods to help narrow down their search to their ideal location.
This digital shift has significantly transformed real estate marketing. High-quality photos and virtual tours have become crucial for attracting potential buyers, often making it unnecessary to host a traditional open house.
Real estate agents and even sellers are now using social media and email marketing to promote listings to reach a wider audience and connect with prospective buyers without needing an in-person showing.
Still Want to Host an Open House?
Before you make any decisions, talk to your real estate agent. They’ll have information about what kind of market you’re in and how effective an open house strategy may be, or if you should try a different option.
If you do hold one, here are a few open house tips to keep in mind:
- Hold your open house on a Sunday afternoon—unless it’s football season, then opt for a Saturday afternoon.
- Deep clean and declutter your home to give a good first impression to buyers.
- Consider hiring a professional staging company to create a neutral palette to help buyers imagine living there.
- Put a two-hour cap on your open house, so buyers don’t get fatigued.
- On your flyers, use high-resolution images and include details like utility costs and upgrade lists.
Do open houses sell homes? They can if used correctly. One of our biggest tips is to use open houses to your advantage. Use them as part of an overall selling strategy or not at all if that works best for you. Selling a home can be a stressful process, so having a comprehensive strategy from the start can help make everything smoother.
Do Open Houses Sell Homes?
While it might seem like a straightforward question, the answer isn’t: open houses can help sell your home, but it’s not a guaranteed method.
Overall, think of an open house as a part of your selling strategy. It can be a great way to generate interest and get more eyes on your property. However, if it doesn’t fit your overall plan or if your realtor advises against it, there are other options you can use.
Selling a home can be overwhelming, but having a plan from the start is key to making the process less stressful and lets you focus on the next steps.
Have you sold your house and are looking to finance your next home? The experts in our Home & Mortgage Center are here to help. Contact us today!