The truth about open houses for home sellers
In my experience as a licensed real estate agent for almost 14 years focusing on listing homes, you need three things to be successful in getting your home sold. Price, condition and strategical marketing. Everything else is smoke and mirrors if the other three have not been addressed to start with.
Open houses typically attract what I would call tire kickers. Someone that wanders in your house because they're thinking about looking to purchase at some point. Many of those buyers are anywhere from six months to 12 months out before they are truly serious. They go to open houses to see the value of the market. The majority of them have no clue if it's even in their price range because they haven't even gone out to get preapproved yet. This is something that has always frustrated my clients. But I explained to them it's part of the process because you never know who that buyer may know.
20 years ago or even 10 years ago open houses were a very effective way to sell a home because we didn't have the Internet or the detail we have now. Buyers had to set up a showing with an agent and physically go and see the home because it's the only way to get the information. That is all changed to the point now where your first showing is no longer a physical showing but an online showing.
The reason to still do open houses is to expose the home to a market for people that are looking to buy a home but also the neighborhood. You can always choose your friends but you can always choose your neighbors. You'd be surprised at how many people would love to have a friend or family member living next door to them so you want to reach out to your neighbors. Doing open houses is a great way to reach out.
According to the national Association of realtors, less than 2% of homes that are held open sell from that open house. I believe that that statistic is not only accurate but tells a story of how the market is changed. The true buyers of a home are looking online first so many of the people who show up to your open houses are people just driving around that happen to see the signs. Or they are just starting their home search.
I am not suggesting that doing an open house is a waste of time. I'm simply trying to set expectations so that you as a home seller understand where the value of the open house is within your marketing strategy.