An open house is an event during which potential buyers can tour a home. Open houses are events where people can come and view a property, and they are usually held on weekends when more people are free to attend.
Open houses are effective in generating interest and discussion about a home. With virtual reality, potential buyers can immerse themselves in your home and get a much better sense of what it would be like to live there. You can get an idea of the layout, the size of the rooms, and the overall atmosphere.
Choosing the Best Day for an Open House
An open house is typically held on a Saturday or Sunday. The reason for this is because most people are not working and have the time to come and look at your home.
An open house on a holiday weekend like Memorial Day or Labor Day is a good idea if you are selling your home during the summer. People are usually more free on weekends and may want to go see houses.
The Time of Day Matters
Timing is everything. And, there’s a good reason for that. An open house is best held in the mid-morning to early afternoon between 11 am and 3 pm, or in the early evening between 5 pm and 7 pm. This allows home buyers to come after they finish up their errands or take care of their kids.
You may also want to consider holding an open house on a weekday evening so that working people can attend. Although the number of attendees may be smaller, the people who do come will likely be interested in purchasing a home.
If you’re planning to sell your home during the winter months, you’ll want to start your open house earlier in the day. Since the days are shorter, potential buyers won’t have as much time to look at your home in the afternoon or evening. People will be able to tour your home without having to go outside in the cold or the dark.
Choosing the Right Season
The real estate market typically operates in a predictable cycle. In most cases, selling your home during the spring and summer months will yield the best results. There is an increase in the number of people looking to purchase items during these months.
If you’re selling your home, you should hold your open house in May or June. If you plan to sell your home, you will likely have the most success if you host your open house during the summer months of July or August.
Of course, there are always exceptions to the rule. If you are selling a house in an area where homes are in high demand, you may want to hold your open house earlier than is typical. By doing that, you can make use of the high demand.
Although it may take longer to sell your home, you may have better luck finding a buyer when the market is doing better. If you hold your open house at an inconvenient time, you may not get many visitors, or any offers on your home.
Why Open Houses Don’t Work
If you’re surprised that people aren’t having open houses when selling their homes, you’re not the only one. Have you ever sold a home, or even your own house, because of an open house?
Yep! You’re correct…but that was in the past and this is now and there’s a big difference.
Time moves forward and things change, sometimes rapidly. In the past, the only way to buy a house was to do all the research and legwork yourself. However, that is no longer the case. Enter the age of the internet. The way we do things has changed because of the internet. Do you remember phone books, also known as the white pages and yellow pages? The large paperback books delivered to your doorstep every year without fail.
Do any of you still use a phone book to look up someone’s phone number? Some of you may not be familiar with phone books or what they look like.
Exactly!
In conclusion, the internet has not only altered the way we conduct ourselves, but it has also had an impact on purchasing homes. We have discovered better methods of selling houses to millennials than what we used to think worked. Open houses are not as prevalent as they used to be and there is a good reason for it.
The reason that having an open house is a bad idea is because it is not an effective way to sell a home.
And, yes, I mean N-E-V-E-R!
Let’s leave the past behind and step into the 21st century together.
Are you ready?
Seven Little Known Insider Facts Most Sellers Don’t Know About Open Houses
Open houses used to be common practice. The real estate industry has evolved and so have the people involved in it. Open houses are not effective marketing tools. This is because they have been used for so long, even though they are not very useful. When it comes to marketing a home, doing something is always better than doing nothing. Fortunately, now, that has all changed—for the better!
1. Open Houses Are Not for Sellers
Wait…what?
That doesn’t make any sense!
Not so fast…
The truth that most real estate agents will never tell you is that the purpose of an open house is not to sell your house, even though it sometimes does. The real purpose of an open house is to help the sponsoring agent get leads. People who stop by an open house are not always actively looking to buy; they may just be thinking about it. People who are considering buying a home but have not yet chosen a real estate agent are not yet ready to buy. The sponsoring real estate agent will get some hot leads from this, both now and in the future when the “looker” is ready to buy a home. A potential buyer who visits an open house and is impressed with the real estate agent representing the seller may be more likely to use that agent when they are ready to make a purchase, resulting in a commission for the agent but at the expense of the original seller.
I highly doubt anyone ever told you that!
2. Curious Minds Want to Know
A reason not to have an open house is that many of the people who visit are just curious about what you have and how you live, rather than being potential buyers. You will be the subject of conversation among your neighbors, likely over something you never considered important, like your decorating choices.
There are also people who visit open houses for other reasons. Many people attend open houses for the free food that is served. You could get a free meal every day of your life by visiting an open house. Some people like to go to open houses and take advantage of the refreshments that are served there.
Do you want people who are not interested in buying a house to come into your home, tracking in dirt and who knows what else?
I didn’t think so!
3. Potential Buyers That Do Visit an Open House
Some potential home buyers visit open houses with the intention of finding a property they will fall in love with. The problem is that if they were truly interested in finding a home, their real estate agent would have already shown them homes that fit their needs without them having to waste their time driving around town aimlessly.
Some potential buyers who attend open houses are not qualified to purchase a home. There are some people who are not aware of what is required to do something and are not prepared to do it. Somebody who wants to buy a house and is serious about it will have gotten pre-approval, which tells them how much they can borrow. If they had a real estate agent, they would have already seen houses that fit their wants, needs, and budget instead of going to open houses blindly.
4. Break Out Your Wallet
People often plan open houses in a similar way to other events, with good food and drinks available. Although this requires resources, if the only thing you’re achieving is people taking a quick look and leaving, is it really worth your investment of time and money? Yep! Not much. If you’re hoping to make money back from an open house, you’re probably going to be disappointed. Don’t go to open houses if you want to save your money. Your real estate agent will bring qualified buyers to you.
5. The Internet Has Completely Transformed the Real Estate Industry
Open houses are typically not effective because of the internet. Let me ask you this…
When you decide to buy a home, the first thing you do is consult with a loan officer to get pre-approved for a mortgage loan.
You go straight to the internet…right?
Yep! And so does almost everyone else. The internet provides an easy way to find a home without wasting time driving around town. The internet provides a wealth of information on homes that are on the market, including detailed descriptions, history, current and past taxes, plenty of pictures, 360° virtual tours, drone footage, maps, satellite views, crime statistics for the neighborhood, marked lot lines, and information on nearby conveniences like grocery stores and restaurants. If you have ever looked at homes on a real estate website, you are already aware of this information.
Why would anyone blindly drive around looking for a home?
The short answer is—they wouldn’t!
6. Every Buyer Should Get the Royal Treatment
Open houses are not a great idea because with an open house, people are coming and going, oftentimes in large numbers. When agents host open houses, they are spread thin and cannot give each guest their full attention. This can be detrimental to the guests. Every buyer who is seriously interested in buying a home should have their needs met in order to find them the perfect home. Anything less is unacceptable!
7. The Number One Reason Sellers Should Avoid an Open House at All Costs Is…
The number one reason sellers should avoid having an open house at all costs is that it is a huge waste of time.
Can you guess what another reason is? You’ve probably figured it out. It’s crime.
When you allow groups of people into your home, you increase your risk of becoming a victim of crime. Although agents try to be present at all times during an open house, there are opportunities for criminals to take advantage of the situation. They may do this by observing the property and looking for ways to break in or by harming the occupants. Sadly, this is more widespread than people realize.
So…is an open house really worth all that? No!
There are more effective ways to market your home than in the past.
The Bottom Line
You should think carefully about how you want to proceed when you decide to sell your home. You should discuss with your real estate agent about their plans for marketing your home. You can then make a decision about which route is best for you, based on your specific situation.
