An open house, where buyers are exposed to the residences for sale, has been a long-standing practice in the real estate industry. Teresa Mears of the U.S. News claims that despite the innovations brought by technology, the open house remains to be a standard in the home selling process.
However, many are actually questioning if the tradition is still effective or if it has outlived its usefulness. Mears says it depends on whom you ask as some believe that modern life has made open houses unnecessary, while there are those who still believe that the step is as important than ever.
Steven Aaron, head of the Steven Aaron Realtor Group at Keller Williams Beverly Hills says, "It's very, very important you have open houses, especially the first few weeks when [the home is] on the market. It makes it convenient for the buyers to come and see the house without an appointment."
But according to Mears, Kevin Kudrna, a team leader and broker for Redfin in Colorado Springs, Colorado, says he forewarns his sellers that the chance of selling a home to someone who attends an open house is so small that it's not worth the trouble.
"In 2015, an open house isn't what it used to be," Kudrna says. "When the Internet started to bring all the listings online, people didn't have as much of a need to go into the houses."
Based on the 2014 National Association of Realtors' Profile of Home Buyers and Sellers, more than 90 percent of buyers begin with their searches online and, through the photos and videos, these home hunters rule out many properties without having to visit the actual place.
Chrystal Caruthers reveals through an article posted on Realtor.com that the real purpose of staging an open house, which is actually one of the best-kept secrets of the real estate business, is not to sell a house but to recruit clients. Caruthers describes, "Open houses are training and recruiting platforms for new agents, or agents who do not yet have listings of their own."
A blog of Bill Gassett posted on RIS Media further reveals that less than two percent of the homes sold nationally springs from the buyer visiting an open house without an agent as guide. Gassette also listed the disadvantages of staging an open house:
1. Wrong Kind of Traffic - There may be a number of people walking through and checking on your home, but the legitimate buyers come in rarely.
2. The Unqualified Buyer - Majority of the people attending the open house will not be qualified to pay your asking price.
3. Busy Work - While a realtor wants to appear valuable to you and staging an open house may be a great way to accomplish this, in reality though, most of the work that goes into selling a home happens behind the scenes.
4. Mainly for your Realtor - Only a few honest real estate agents will tell you that the real reason they are holding an open house is to get additional clients.
5. Security Issues - A lot of sellers have reported theft both during the open house and even on a later date when thieves, disguised as visitors during the open house, come back and take what they want from your home.
