Do Open Houses Work?

As a seller, you may sometimes prefer your home to be open for one or more open houses. However, some are less interested in allowing just anyone into their homes.

But do open houses help in selling? Yes and no, it depends on the timing.

So, we will discuss:

• The opportune time to hold an open house
• How it should be executed to ensure success
• The expected outcomes

When is the Best Time to Hold an Open House?

An open house is beneficial when held early in the listing period, especially if the property is priced right or aggressively. Why? It creates urgency and shows potential buyers that the property will sell quickly. This makes the process quicker and more efficient for sellers, as they don’t have to vacate multiple times during the initial days since visits are typically condensed during the open house. At this point, it attracts motivated buyers who are ready to take action (not just neighbors who are curious).

Another opportune time is when adjusting a sale condition to make the property more competitive and attractive to buyers. To summarize, if the property was overpriced and is adjusted to a fair and competitive price (we're not talking about a mere $1,000 reduction, but rather a 5 to 10% adjustment typically).

How Should It Be Executed?

Announcing the open house several days in advance on Centris and all other relevant platforms is crucial. Sponsored campaigns on social media should be leveraged. Inform all colleagues about the event, and display the open house sign several days in advance.

The broker should gather feedback from all visitors to provide a thorough report to the seller and address any potential issues that require correction.

In-depth knowledge of the property and its details will make all the difference in seizing this opportunity to sell to potential buyers.

What Results Can You Expect?

According to the National Association of Realtors (NAR), only 2% of sales are attributed to open houses among buyers. Therefore, while open houses are not essential, the availability of the real estate broker to grant visits, their quality as collaborators, and the quality of the information conveyed to the public are much more important, as these are what bring clients to the seller.

Is an Open House Just a Crutch?

Often, a broker will hold an open house when there is little activity on a property to reassure an impatient seller or to give the impression to the seller that they are "working." However, nothing beats good conversation to set things straight and adopt a proactive approach to completing a real estate sale.