Open houses as a marketing tool have been around for decades. But lately, the practice has been a subject of disparagement by real estate agents who argue that digital marketing makes them obsolete. They maintain that open houses rarely result in a sale and agents who hold them are only looking for new leads. Another favorite argument is that an open house is an open invitation to a thief.
Taking into consideration the fact that real estate is a hyperlocal business, I will grant you that open houses may be more successful in some areas than in others. Also, I’ll concede there may be a sliver of truth in the claims, but I fail to rise to the level of supporting the argument. Before you call a moratorium on open houses, I’m going to bust those myths.
Myth #1: Digital marketing renders open houses obsolete.
According to a 2017 report from the National Association of Realtors, when we look at buyer trends, we learn that 83% of buyers use the internet to search for homes. Digital marketing tools like video and interactive 3D virtual tours, professional images and drone photography are invaluable to promote listings and attract attention. Many call it the new “curb appeal.”
Every agent should agree that when you sell a house, the key is getting that property in front of as many buyers as quickly as possible. A 2016 Inman open houses special report found that more than two-thirds of those surveyed said open houses are worthwhile and that virtual tours did not replace the experience of an open house. Sales is a numbers game — which brings us to the next step, getting buyers into the home. When they make an emotional connection, magic happens.
Myth #2: Open houses do not result in sales.
It’s irrefutable that the more traffic you see in an open house, the higher your chance of receiving an offer. Even a few potential buyers coming through the door increases the odds. Upon analysis, my own sales data indicates that approximately 35% of my business is directly or indirectly related to open houses. In the same Inman survey, 67% of respondents said that an open house contributed to a sale either directly or indirectly.
Those numbers are impressive and support open houses as a powerful marketing tool when in the hands of a listing agent who knows how to use it. It takes more than posting on social media and putting up signs, although that is undoubtedly part of the process. But to stage a successful event, an agent should be proactive in reaching buyers. A visit to the neighbors with beautiful brochures in hand will create some buzz and get them talking to friends who might want to move into the neighborhood. My personal favorite tactic is checking the multiple listing services for anyone who favors the property. I then let their real estate agents know I am hosting an open house.
Myth #3: An open house is an invitation to thieves.
As many times as I have seen this called out in articles that disparage open houses, I have not seen one link to any supportive data. Searching the internet has not unearthed any either. In the 16 years in which I have been practicing real estate, not one of my clients has experienced a robbery while their home was for sale, nor have I been told that was the case with any broker I know.
In the interest of safety, I always advise my clients to remove small valuables like jewelry and likewise secure prescription medication. It is also wise to lock down computers and put documents with personal information in a safe location. These precautions are prudent under all circumstances when a home is on the market. Either way, strangers are walking through the property. Once you take the necessary precautions, I see no reason not to move ahead and use every tool in the marketing arsenal to close a deal.
There are times when I make a listing presentation and clients ask me about my plans to host an open house before I even bring up the subject. It’s not surprising when you consider the Inman report that found almost that 87% of survey respondents said consumers not only want an open house, but that half of them give it an 8 out of 10 rating in importance. Open houses get exposure and build excitement around a new listing, and they do bring offers to the table. Sellers want them and so do buyers. That’s why they will remain a vital element of my marketing strategy.
