According to the National Association of Realtors only 1 in 400 homes sell due to an open house. Why are open houses so ineffective? Because serious buyers don't go to open houses; they schedule showings through an agent. Think about it, if someone is not serious enough about buying a home to call the agent to schedule a showing, then how serious are they? NOT VERY. These are the people that come to open houses.
If open houses are such a poor way to sell homes, then why do agents do them? Is it because agents still somehow believe that open houses work? New agents might, but seasoned agents know that open houses don't work. Now we are back to the same question, "Then why do them?" Here's a countdown of the top three reasons agents do open houses:
3. Open houses are cheap. It's cheaper to put up an open house sign than it is to pay for effective advertising.
2. To placate their seller. By doing an open house they can demonstrate to their seller that they are at least trying to sell the house.
And the number one reason...
Since the majority of the people that come to an open house are going to be neighbors, it is the best way to find other people that may be looking at selling. That's right, your agent is using your house to increase their business.
Do I do open houses? No, I don't. Instead I have a comprehensive marketing plan that includes professionally designed color flyers, mobile website, virtual tour, upgraded listing on Realtor.com, direct mail, agent prospecting, home staging, a huge Internet presence, a trade-up program, etc, etc, etc. I do the things that actually work.
But if a seller is convinced that an open house is what is needed to sell their home, then I will let them do open houses and if they find the buyer then the commission I charge is only 1%. If that is not enough incentive for the seller to do an open house, then they must not be very convinced of the effectiveness of open houses.
Trumm Team - Alliance Real Estate, Omaha, NE
Your Home Sold within 120 Days or I will Buy It!
| Troy Trumm, Trumm Team - 402-943-9494, Omaha NE |
| Omaha Homes For Sale |
| Omaha Real Estate |
Sellers understand 4 dollar a gallon gas. When I explain that buyers are looking online to save gas they all get it.
Thanks for the info. I was wondering and now I know.
Open Houses seem to do pretty well here, except when the Chargers are on television, but as you noted, "do pretty well" is in the eye of the Realtor. I know several who have gotten new Clients through open houses, but in the 15 years here that I have been working with Realtors, I only know of one who has ever sold the house that he was holding open to someone who came to the open house.
Sellers also understand security, and I tell them that there is risk in opening their home to anyone who wants to come through and case it out. It's impossible to watch what everyone is doing at every moment. I decided that I would have my sellers sign a release of liability for me in the case of any damage or theft during an open house, and since then none of them have requested one! Having said that, there are circumstances sometimes when I believe an open house might have REAL VALUE to the seller in selling their house, and I am all over it. I question the 1/400 ratio as being waaaaaaaaaaaay too high!
I agree, open houses seem to be a thing of the past. With so many photos available online, virtual tours, animated sites, etc. most buyers are "shopping" online, not on the road!