Do Open Houses Still Drive Home Sales?

Reviewed by: Brandon Brown

According to the National Association of Realtors, fewer than 4% of home buyers find the house they purchase through an open house.1 Searching for homes online is the norm, and the pandemic pushed that trend further along, with a spike in entirely virtual closings that didn’t include a single site visit, let alone an open house or private showing.2 So, are open houses worth it anymore? And do open houses sell homes? Let’s take a look at the pros, cons, and alternatives.

Understanding the Purpose of Open Houses

Traditionally, an open house was the keystone of marketing a home for sale. Put an open house sign in the yard, print up some flyers, and have your listing agent ready to take names and accept offers from a bevy of interested buyers. Open houses weren’t only for attracting day-of offers, but also to:

• Advertise the home’s open house to generate buzz and timeliness

• Observe reactions and obtain feedback from prospective buyers

• Enlist neighbors in promoting the property to their friends, families, and coworkers in hopes of casting a wider net and sourcing new potential purchasers

Examining Pros and Cons of Open House Events

They’ve been the norm for decades, but do open houses work? It depends on your goals as the home seller. Benefits include:

• Spotlight readiness – You’ll hopefully have your home prepped for viewing throughout its time on the market, but an open house provides an established event when it can be shined, staged, and even scented to its best advantage.

• Buyer feedback – An open house provides agents an opportunity to observe visitor responses and question their impressions, getting immediate input that can serve to steer additional marketing efforts in what to highlight, change, or camouflage.

• Neighborhood data – Being a magnet for nosy neighbors is often touted as a downside to open houses, but these folks can be a useful source of information on area features and how this property compares and contrasts to others nearby.

On the other hand, potential open house drawbacks include:

• Theft of personal belongings

• Damage, from mud tracked in to broken items, especially without enough supervision

• Perception of failure if your home stays on the market well after an open house event

• Cost – The expense and time involved in marketing and setting up a public showing

• Wasting time on unqualified buyers

Comparing Open Houses to Online Models

Your chance of capturing a qualified buyer who’ll end up submitting an offer based on attending one open house on a random afternoon—not high. It’s limited by the small slice of the buyer pool who’ll see your open house marketing and the even smaller pool who’ll be available to attend. Inviting prospective buyers into your 24/7 is much more effective. To keep them from knocking while you’re in your pajamas, you can:

• Utilize professional photography

• Include videos as well as still photos

• Provide a virtual tour function

• Employ virtual lookbooks

Lookbooks can not only show a room in your home on a buyer’s viewscreen, but can display it with no furniture and allow them to add and remove different furniture and fittings to see how the room would look decorated to their taste.

Leveraging iBuyer Solutions: Selling Homes Without Open House Hassles

There are a couple of layers to the open house decision. If you’re selling your home via a traditional listing, then are open houses effective for your specific situation, and do you want to invest in one? Before you get to that question, however, let’s back up to the decision on your selling method. Most sellers assume that a traditional sale is the only way to go—listing your home on the MLS through a real estate agent and marketing it to prospective buyers before waiting for an offer to show up. However, there are a variety of home selling options available aside from this traditional approach.

You can also opt to forgo the entire listing/marketing/waiting process through a cash sale to an iBuyer, or business that purchases homes as an investment, usually to revamp them and sell them at a higher price. It’s quick and simple to get an iBuyer offer in hand before you sign with a real estate agent for a traditional listing, and it can help you decide whether to keep that bird in hand or gamble on future home buyers. Selling to an iBuyer typically means:

• A cash sale with no financing delays or concessions

• A quick closing at your convenience

• No need for home repair, remodel, or staging

• A virtual home viewing and sale closing

Opt for Cash Now Plus Profit Potential

Home sellers in Los Angeles, Orange County, and San Diego can obtain a no-obligation offer from FlipSplit. We’re an iBuyer with an edge over other investors. In addition to paying fair market value for your single-family house, we:

• Cover all buyer and seller closing costs, so you receive every penny of the offer price

• Renovate and upgrade your property to current buyer preferences and sell at top dollar

• Split extra profits with you 50/50 when your home is resold

Before you get stuck paying high commissions and fees—and waiting months for your sale to close—connect with FlipSplit to learn more and request an offer today.  

Sources: 

1. National Association of REALTORS®. Quick Real Estate Statistics. https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics
2. Forbes. More People Than Ever Are Buying Homes They Haven’t Seen In Person. Here’s Why. https://www.forbes.com/sites/ryanserhant/2021/03/30/more-people-than-ever-are-buying-homes-they-havent-seen-in-person-heres-why/