Thinking about hosting an open house to sell your home? The data might surprise you. While open houses may sometimes create the illusion of demand, most serious buyers schedule private showings with their agents, and that’s where offers come from. This video explores what open houses really accomplish, the risks they carry, and why a more strategic approach often leads to better results.
We’ll cover:
– Why open houses rarely lead directly to sales
– How they influence buyer psychology
– Security concerns and tracking limitations
– What actually works when it comes to selling a home
Before you bake cookies and put out flyers, take a closer look at what open houses do (and don’t) deliver.
Eric Andersen, B.A., M.Div.
Owner/Designated Managing Broker, Andersen Realty Group
📲 Text/Call: 708.674.6725
📩 Email: eric@eandersenhomes.com
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Transcript:
For decades, open houses have been a staple of real estate marketing. Sellers picture a weekend afternoon filled with eager buyers streaming through the door, leading to a flurry of offers by the end of the weekend. It may feel like a necessary step in the selling process, a way to ensure the home gets maximum exposure. But the truth is, open houses rarely sell homes.
I’m Eric with Andersen Realty Group. Most serious buyers don’t wait for an open house; they schedule private showings with their agent at a time that works for them. Data shows that the vast majority of sales happen through these scheduled appointments, not from some rando wandering in during an open house. I’ve hosted thousands of open houses, and I’ve only seen that happen once. So you’re telling me there’s a chance? Yes, Lloyd, there is a chance you’ll sell your home from the open house. But there’s a big difference between what’s possible and what’s probable. Yet, the open house remains popular and they do serve a purpose, though not always the one sellers expect.
The Perception of Demand
One of the biggest benefits of an open house is the perception it creates. Even if it doesn’t lead to an immediate offer, it can make serious buyers feel a greater sense of urgency. They see an open house scheduled and assume other buyers will be there, making them worry about competition. That fear can push them to act faster, scheduling a private showing or even submitting an offer to avoid missing out. Buyers may contact their agent after seeing the open house advertisement to ask if the home’s getting a lot of interest. This perception of demand, even if artificially created, can work in a seller’s favor. If you’re a buyer, don’t worry about the open house. Worry about how many showings they’re getting.
Open Houses Make the Listing Agent Look Busy
Open houses also serve another function, though not necessarily one that benefits the seller. They make the listing agent look busy. Even if the open house doesn’t generate real interest, it suggests to the seller that their agent is working hard to market the home. But the truth is, the open house is often more valuable to the agent than to the seller. In hosting thousands of open houses, I’ve met many, many buyers, whom I’ve gone on to help purchase other homes. Only once did the buyer I meet at the open house buy the home that hosting the open house.
Casual Buyers and Market Feedback
For buyers who are just beginning their search, open houses provide a low-key way to look at homes without committing to a private showing. Some prefer to browse casually before they get serious about working with an agent. This is great for early-stage buyers, but of no use to the seller. An open house might help a potential buyer decide what they want months down the line, but it’s unlikely to translate into an offer.
There are times when an open house can provide useful feedback. If multiple visitors comment on the same thing—the price is too high, or they were expecting the home to be bigger—this feedback can sometimes help the seller make adjustments. But in most cases, the strongest feedback comes from actual buyer activity: how many private showings are scheduled, whether any offers are made, and what agents are saying about their clients’ reactions. An open house can provide some insight, but it’s not best way to gauge market response. Personally, I’d rather have one private showing than an open house filled with tire kickers and looky-loos.
Serious Buyers Don’t Rely on Open Houses
While they aren’t completely useless, open houses do have their downsides. As we’ve said, the most serious buyers, those who are ready to make an offer, don’t rely on open houses to find homes. They schedule private showings. When a buyer’s ready to move forward, they don’t wait until the weekend to see it. They schedule the tour with their agent as soon as possible. They may come back for a second look at the open house, but the most serious buyers write the offer right away.
Open houses can also be a double-edged sword. While a busy open house, even if it’s filled with nosy neighbors, can give buyers the impression of strong demand. But sometimes, nobody shows up to the open house, and that gives exactly the wrong impression. The last thing a seller wants is for a serious buyer to walk in and see an empty house. Instead of creating urgency, an empty open house can leave buyers with a negative impression, making them feel like they have all the time in the world to negotiate or, worse, making them wonder if something’s wrong with the home.
Looky-Loos and Nosy Neighbors
Open houses also attract a large number of people who have no intention of buying. Nosy neighbors often stop by just to see what’s inside. Casual browsers wander through out of curiosity. Some visitors attend open houses simply because they like looking at homes, not because they plan to make an offer. While open houses do bring foot traffic, most of it is from people who aren’t in a position to buy anytime soon.
Security Risks and Privacy Concerns
Security is another concern. Assuming the open house is busy, it can be difficult to keep track of everything. In addition to nosy neighbors and looky-loos, open houses can also attract those with less-than-salutary intentions. Small valuables, electronics, and even personal documents can go missing. Even in cases where nothing is stolen, open houses allow strangers to walk through private spaces, opening cabinets, peeking into closets, and assessing the home in ways they would never dream of doing during a showing they scheduled with their agent.
Open Houses Can Interfere With Buyer Tracking
Another issue is that an open house can actually interfere with tracking serious buyer interest. A motivated buyer who otherwise would have scheduled a private showing might instead decide to just stop by the open house. That sounds harmless, but it removes an important step in the process. When a buyer books a private tour, their agent provides feedback, and the seller’s agent can track serious showing activity to gauge interest. But if that same buyer attends an open house, they may leave without saying much to listing agent at all, making it harder to get a sense of how serious they really were.
Are Open Houses Worth It?
Open houses aren’t completely useless, but they’re often more about optics than results. In a best-case scenario, they can sometimes create the perception of demand. But this can also backfire. Otherwise, open houses make the listing agent look busy and allow casual buyers to explore. When it comes to actually selling a home, the strongest, most motivated buyers schedule private showings.
For sellers considering an open house, ask yourself what you’re hoping to achieve. If the goal is to make the home feel busy, an open house might do that. But if the goal is to actually sell the home, you’d be better served by pricing strategically, marketing effectively, tracking genuine interest, and attracting serious buyers through targeted outreach. Unlocking the door and hoping the right person wanders in isn’t a strategy. It’s wishful thinking. If you’re a buyer who’s ready to get serious about finding the right home or a seller who wants an effective strategy for marketing your home, reach out using my contact information in the video description, below. And if you found this helpful, please sure to like this video, subscribe to my channel, and turn on notifications. I’m Eric with Andersen Realty Group, a family-owned brokerage where we treat our clients like family.