An open house may be a useful way for buyers to gain information about the market place, and they may be wonderful ways for agents to meet people who are looking for homes, but they are of practically no value in attracting buyers for the home itself...
Have you ever thought about how weird open houses are?
I mean, you give your keys to someone you hardly know, they stand in one room and welcome in a bunch of complete strangers, and those people just roam around the house. And the realtor doesn't check the house when it's done, right? They just... turn the lights off and go?
It is a well-known fact that open houses do not sell homes.
Open houses serve one purpose only, to provide free networking opportunities for rookie agents to meet buyers looking for other homes and to meet other sellers.
Instead of relying on open houses, experienced real estate agents are putting their efforts into marketing online. Almost all buyers start their search online.
Open houses are often touted by traditional companies as the best way to bring numerous buyers into a property within a small period of time and get it sold quickly, but I argue just the opposite happens...
* The attendance list at an open house tends to include curious neighbors, people who view open houses as an afternoon activity and buyers who knowingly can’t afford the house.
* Sometimes you’ll get other agents dropping in for a quick preview.
* In addition to wasting the seller’s time, open houses can also pose a security risk. After all, these are strangers walking through personal spaces and home owners’ risk items getting stolen or broken.
* It's well documented that theft and even violent crimes occur at open houses.
* Publishing an open house is an invitation to criminals and provides a unique opportunity for criminals to case a home for a future crime or commit a crime while someone else distracts the onsite realtor.
* Since open houses are usually only hosted by one agent, it’s impossible for him or her to know what’s going on in the house at all times.
According to the 2005 National Association of Realtors® Profile Survey of Home Buyers and Sellers…
Are open houses useful for sellers? Well, although 51 percent of home buyers said that they used open houses as a source of information in the home-buying process, and 42 percent said they were useful sources of information, not even 1 percent named an open house as the source of information from which they first learned about the home that they ultimately purchased. Moral? An open house may be a useful way for buyers to gain information about the market place, and they may be wonderful ways for agents to meet people who are looking for homes, but they are of practically no value in attracting buyers for the home itself.
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