About this episode
One of the more strange points of contention in the world of real estate is open houses. How does something so simple result in so many different opinions? Today, I want to take you on a journey to discover the bottom line truth about open houses using some common sense - which frequently seems to be left out of the discussion - and 30 plus years of experience from a real estate professional (That's me!). The Common Points About Open Houses The argument against open houses usually goes something like this. First, buyers today use the internet to browse for homes and narrow down their choices. One little nugget they like to use to support this claim is that a National Association of Realtors survey found that only 7% of buyers found the home they bought by visiting an open house. Next, and probably the most commonly used point by real estate agents in listing appointments is that open houses are really more about Realtors getting new clients at open houses and far less about selling the home. A line home sellers might frequently hear is "I have never seen or heard of someone selling a home at an open house!". Finally, the idea that theft is a major downside to open houses where visitors can steal jewelry or other loose items or perhaps even check out the property for a future break in. Common But Not Convincing All that sounds pretty reasonable, right? In reality, it only holds water if you accept their definition of what an open house is supposed to be. So let's refer back to that National Association of Realtors study. Read that line again, carefully. … only 7% of buyers found the home they bought … So consider that for a moment. Of course buyers do not FIND the home they buy using an open house. This assumes that the open house is the first exposure a buyer has to the home and not only is that not correct, it has NEVER been correct - even before the internet. An open house is not the opener to getting the notice of buyers, but it is a way to let them conveniently get access to the home for viewing. Open houses are a viewing tool. At its core, an open house is a scheduled period of time in which interested parties can view a property that they have interest in. They likely found the home on the internet, liked the information they saw and then decided to use the open house as a way to get a look at the inside. So the open house is about access, not introductions. Easy To Show Makes It Easier To Sell As I have covered in past podcasts, videos and Coffee & Real Estate Live Chats, the home that is easiest to show is the house that will get shown first and most often. By offering an open house, buyers do not have to set a time and try to wedge it into seeing a number of other properties. They avoid having to view the home with their real estate agent,
