If you list with an agent—and I’m sure many of you have before—you’re probably aware of the overwhelming push to host an open house for “walk-in” customers. The agent has a big hand in this, but his reasons may not be a helpful in your cause as you may have thought.
According to an NAR study, only 2% of houses are sold thusly. I have another agent corroborating the opposite saying that 20% of his residential listings are sold through open houses. The jury is ultimately out on whether or not open houses get houses sold, but is seems that it certainly doesn’t hurt. That being said, it’s probably not the best allocation of resources.
So what really goes on at open houses and why are listing and selling agents so eager to give up their Saturday afternoons to come sit in a pristine looking house if—at best—they have a 20% chance of locking in a buyer? Networking.
It’s true. A great way for listing agents to find “orphaned” buyers and other potential customer is to bait them with an open house. It’s all about the conversion factor. With the right touch, any one who strolls into an open house is a potential customer and possible addition to an agent’s client base. So while he/she may have you thinking that this is the be-all end-all way to get your house sold, it’s not necessarily true.
But FSBOs beware. The open house, likewise, is not the key to selling a house. A good listing and properly set asking price is the key. Dig into your network of friends and family to find a seller. Use those social media tools we discussed in an earlier blog—just don’t rely on a few signs and some desperate walk-in buyer to buy your house.
UP NEXT AGENT’S “NEGOTIABLE” FEES AND HOW TO SPRUCE UP YOUR HOME FOR THE HOLIDAYS