Yes… I am talking about the waste of time that thousands of Realtors continue to participate in week after week on Sundays in Massachusetts….THE PUBLIC OPEN HOUSE.
Let me rephrase that…A waste of time for the seller of the home.
This will probably come as a surprise to you but Nationally less than 1% of homes sell from a public open house!
In the majority of cases serious buyers are looking at homes with Realtors. So who goes to open houses and why do Real Estate agents continue to do them? There are a numerous plausible reasons for both of these questions. 1st lets address who you can expect to show up.
- Your neighbors – curiosity will be a driving force for many of the people on your street. You can also expect your nosy neighbor to be there to compare what you have in your home to theirs.
- The “professional” Sunday open home looker – these are the folks that just like looking at homes. Homes after all are interesting…they all have there own unique features. You can expect this person to just swing in for a quick look after seeing a Real Estate sign outside the home.
- The Unqualified - This is one of the more common attendees of an open house. If you are selling a home for $500,000 you expect the potential buyers walking through to be qualified to spend $500,000 right? WRONG…more often than not the people walking through will be unable to spend the asking price. If there wasn’t an open house would you want your Realtor bringing people inside your home that are not qualified?
- The “idea” person – this is someone that will walk through the open house to get “ideas” for their home. It could be any number of things such as decorating, furniture, a granite counter color whatever. The idea person will most likely show up at the more expensive homes where there are things on a grander scale.
- The “Robber” – although far less common than the above four, an open house is an open invitation for a potential robber to case your place prior to coming back to get what they want. There are also times where multiple parties could be in your home at the same time. It is next to impossible for a Realtor to have their eyes on everyone at all times. There could be a few parties on the 1st floor and someone else on the 2nd floor. Not good!
So why do Real Estate agents do public open house’s? There are a few simple reasons. 
- As an agent holding an open house chances are pretty strong you will meet one of the neighbors (see above). This is a great place to establish re pore for future business. Who knows, maybe a neighbor is thinking of selling their home in the near future. If the neighbor and the agent “connect” it could lead to future business in the form of another listing for the Realtor.
- An agent could meet a legitimate buyer that can’t afford the home they are holding public (see the “unqualified” above) but may be a buyer at a lower price point.
- Open houses give a Realtor the possibility of potential additional clients they can work with.
- The seller insists on them! Most sellers will want an open house if they have not been educated by a good Realtor on why they are a waste of time.
- An agent that doesn’t do much business will often “sell” this as part of their presentation to the seller during the interview process to get the listing. They tell the seller how wonderful open houses are and how much “traffic” will be coming through. What they don’t tell you is the traffic is of very low quality and that they are using your home as a place for them to capture new leads.
- An open house is a quantifiable action that shows that the Realtor is making an effort to sell the home. There are lots of things that agents do behind the scenes to sell homes but this is the one that is physically apparent. An agent has to drive to the property set up an open house sign and man the property. A seller can physically see that the Realtor is making an effort.
Is it possible that you may get lucky and sell your home through a public open house?….Sure it is but don’t expect it. Again nationally, less than 1% of all homes are sold through a public open house.
I have been a Realtor for the last 24+ years serving all of the Metrowest Massachusetts area and towns further West. During my time in the business, I have sold two homes through a public open house. Yes you are reading that correctly just two! I have been involved in over a thousand real estate transactions during that time.
Is it any wonder that you see way more of the Sunday open house signs in a down market than you do when things are selling briskly….think about that for a moment.
When I meet with a perspective seller client I explain to them right up front about open houses and what they can expect from them. I explain that I do not personally do them, as I have other more productive things to do with my time. If a seller really wants one there will be someone in my office that will be happy to provide this service for me.
After all the agent isn’t foolish enough to believe they are going to sell my listing that day. They believe they will find a few clients to work with!
It is really silly to believe that a ready willing and able buyer is not going to schedule a showing on your property if they are really interested in seeing it.
There will be no lost opportunities if you do not hold your home open. When choosing to work with a Realtor pick one based on their credentials, past track record and their ability to bring real buyers into your home via their marketing efforts!
** It should be noted that an open house for new a new development is different than a re-sale home. Often times builders use an open house to showcase their homes and to provide an example of the type of homes they build including floor plans and construction quality.
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About the author: The above Real Estate information on Massachusetts public open houses was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 24+ Years.
Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!
I service the following towns in Metrowest MA: Hopkinton, Milford, Upton, Southboro, Westboro, Ashland, Holliston, Mendon, Hopedale, Medway, Franklin, Framingham, Grafton, Northbridge, Shrewsbury, Northboro, Bellingham, Uxbridge, and Douglas.
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{ 13 comments… read them below or add one }
Bill – So true ! Often times they will get no traffic at all, especially on cold, winter days. I recommend sellers that we have an open house 24/7 on the Internet with photos, video, blog, etc…. It is amazing how many open houses were done today in our neighborhood. I walked by one and saw zero activity. Just not smart planning by the agents and not smart decisions by the sellers going with this strategy.
You forgot to mention the danger to the Realtor. It is not safe to sit in a home by yourself and let strangers visit and linger in the home with you. If I wanted to do that, I would leave my doors unlocked at home. I could name several frightening examples, one of which happened to a Realtor with our company.
Chris – in speaking with some of the other Realtors in my office that hold them there are times when not one person shows up!
Sharla – You are right on the money about the safety issue as well. I am located in a very low crime area but I am sure there are other areas that certainly are not!
Bill, your analysis of Open Houses is spot on. With under 4% of homes nationally selling at Open Houses, the Sellers can skip this and still have their home marketed by the best.
Hi Bill,
For sellers you’re absolutely right, the chances of them selling their home at an open house are pretty slim. It really is more of a tool for agents to meet potential clients.
Having said that, if the home is in a high traffic area it might still be worth holding an open house. As agents our job is to “get the word out” and lots of visitors means lots of people talking to friends/family/co-workers that may lead to a sale in the future.
I like Sharla’s point about safety too. Too many agents disregard this one.
Denise
Sharon – I know there are plenty of folks that would love not to have to leave their home on a Sunday. Far to many home sellers are given the false promise that open houses are going to be a magic bullet for their home sale.
Denise – There is no question a Realtor may meet a few potential clients if they are lucky:)
Bill,
Great article regarding Open House for all the reasons previously mentioned. If local print media was to run this article it certainly would be helpful and not just considered one salespersons opinion.
Sellers will quite often request Open House because other salespeople feel the need to.
I find that if the salespeople toured the listings during office inspections they do call their buyer clients and arrange personal showings.
I also find that during an Open House most attendees are working with a Realtor and it is impossible to do a service to the seller client by having, in some cases, 15 – 20 people arriving at the same time and wandering through their house on their own. The one-on-one approach is the best system.
I must admit, it is a great tool for new Realtors building a client list as long as they remember to obtain permission to do follow up calls under the privacy Acts of this day.
Regards,
Tom
Hi Bill,
The statistics are telling, you are right. Not many homes sell at open houses. But sometimes they do, and what I’m finding lately (in my market anyway) is that open houses will make fence-sitting buyers nervous. They may be waiting for the price to drop on a specific home, then they see the open house ad and worry that someone else may buy the home they want. Voila – an offer goes in the day prior to the open house.
As a listing agent, I’ve sold resale homes during open houses. (The party atmosphere suits my style I guess.) It’s a tool that we should have in our box of resources and use as needed. I agree with you, though, sellers should know the odds of a home selling during open house vs. buyer’s agent showings. Show the seller where the highest odds run. Nice post, as always.
My wife and I first saw the South End condo where we will have lived for the past 5 years at an open house. Open houses were also an important tool for us as buyers to get a better understanding what was available in various downtown Boston neighborhoods.
When we sold our single family in Brookline, we also had 2 hot prospects that first came via open houses. Our ultimate buyer however came with a buyer’s agent.
From my prospective as a home buyer and seller, open houses are an important part of the home buying process.
Rich – Thanks for dropping in and commenting on my blog. I will not argue the fact that open houses can be convenient for buyers. It is always nice to know in advance a set time schedule for viewing a particular home.
I agree with everything you’ve said – both pro and con. I do them because in this market, I want to do everything possible to sell the home I’m marketing. It is a very small chance, but it’s a chance. Last Sunday I had 12 couples through a new listing. I had a call back from only one, but they liked the house and as soon as theirs sells…………………….!
Bill, I have sold at least one home a year from a public OH. And, I have sold my own listings and got both sides of the deal on 3 of them. Granted some homes don’t warrant an OH but I think it is a way to get the house “in the market”. It is up to the agent to promote the home so that people want to see it and OH is one tool.
So Marty if you did not hold the open house do you think the buyers would not have scheduled an appointment to see it? Highly doubtful! I am not saying that a public open house does not make it convenient for a serious buyer to see a home but more often than not the foot traffic going through is of very poor quality for all the reason I mentioned in the article. One home a year is still not that good but much better than the national average!