There was a time not too long ago when the common belief was that if a real estate agent did not conduct an open house, he or she was not that serious about selling your property. However, in recent years, a debate has been brewing over whether open houses are still worth the effort put into them. While it may still demonstrate an agent’s commitment, the statistics show open houses may be less effective than ever in actually helping you sell your home.
According to the National Association of REALTORS®, only 7 percent of home buyers in 2017 found the home they purchased from an open house — a drop of 18 percent from 2004. By contrast, 51 percent of buyers found their home on the online! These numbers easily tell the story of how the digital age is changing the way people buy and sell real estate. People no longer need to drive around town on weekends to find the open houses for sale — they can simply open up a browser, anytime, day or night. You might generate some attention and even get some foot traffic, but, at the end of the day, many people who visit open houses these days are not serious buyers, just mildly interested or curious.
Who Benefits from an Open House?
If only 7 percent of homes are purchased through open houses, it is a safe bet that in most cases, sellers are not benefiting from them. They simply cost time, money and inconvenience. So, who does benefit? In two words — the agent. Most of the people coming through an open house are unaffiliated buyers, and the agent gets the opportunity for some free one-on-one time with these prospective buyers knowing they probably will not be interested in your home but might want help finding one down the road. In fact, The Balance goes so far as to suggest that an agent only hosts an open house for one of two reasons: to placate the seller or generate more leads!
Is an Open House Ever Beneficial?
Sometimes, yes. (After all, 7 percent is still 7 percent.) For example, an open house might be beneficial to the seller if:
- The home is in a high-traffic area (i.e., near major thoroughfares) and is likely to generate interest
- The home is in a coveted neighborhood and priced to sell
- The home has been on the market for a while and other attempts to market it have yielded no results.
Here at Atlanta Fine Homes Sotheby’s International Realty, our focus is on using the most effective strategies for selling your home, not necessarily generating interest in the agent or our company. Thus, we only recommend open houses when we genuinely believe it is in the seller’s best interest. To learn more about the strategies we use to sell your home, call us at 404.948.4812.