Here at Federated Realty, we are openly against open houses. We consider them a waste of time and our clients’ money. Our strong stand against open houses is not without reason. Here is why we don’t recommend this sales tactic to home sellers:
An open house rarely results in sales: According to the National Association of Realtors, the number of homes sold due to an open house is staggeringly low – a measly 2%. This is not a promising number. If fact, it is low enough to make you question the worth of even having an open house. If you channel your energy, time and money usually wasted on organizing open houses to effective sales tactics, you will get far greater results.
True motives behind open houses: Your agent may be hell-bent on organizing an open house, touting it to be one of the best sales tactic, but you will shocked to know that they have own ulterior motives. A lot of agents actually use open houses to meet other clients. All of those unwanted visitors – with the exception of the burglars – are potential clients for the agent.
Unqualified prospect: Most of the people visiting open houses are tyre-kickers. They are just there to taste the waters. They are not motivated buyers. Have you ever driven through a nice neighborhood and seen an open house – a really nice house – and thought about stopping in to check it out? The problem is, often the people coming into your open house are doing the same thing. Just stopping in to check things out, not to buy.
Security and theft: Letting strangers in off the street to wander around your home carries some obvious security risks. While the majority of visitors will most likely be there to view your home and learn more about it, some may be there for more nefarious reasons.
Neighbors: An open house is like a beacon to neighbors curious about your home. They may be great neighbors or not so great neighbors. However good they are to live by, you may not want them wandering around your house. Unfortunately, there is no real way to stop them.