How Effective is an Open House for Home Sellers or Real Estate Investors?

Open houses help real estate agents and investors- Agents also pick up new listings at open houses.
more than they help home sellers.Should you hold an open house to sell your home?
In 2202, a survey by the Real Estate Center at TexasNot many homes actually get sold because of an
A & M University found that private open housesopen house. You get a lot of looky-lou's and unqualified
for other agents were more effective than public openbuyers. Sometimes, thieves look for easy targets by
houses. The agents surveyed thought public openvisiting open houses. However, if you list your home,
houses troublesome, dangerous, and generallyyour agent should hold a private open house for other
ineffective except for agents who needed to build aagents to preview your property.
client base. The survey said "Although open housesShould real estate investors stage an open house?
are popular with sellers, they appear to be losing theirIf open houses lead to 7 percent of all home sales, real
appeal among agents. Sellers see the open house asestate investors should consider an open house.
an indication the agent is actively promoting the listing.Stage an open house when you finish remodeling a
Agents know, however, the odds are long that anfixer and invite all the neighbors. Often, neighbors know
open house will produce a buyer."a friend or family member looking for a house.
A more recent survey conducted by The NationalMake the open house an event and tell the neighbors
Association of Realtors in 2005 found that opento bring anyone looking for a new home. Stage the
houses led to only 7 percent of all home sales. In theirhouse with extra flowers and essential oil scents, play
profile of Home Buyers and Sellers, the NAR, reportedmusic, serve refreshments, and have your loan officer
that 42% of home buyers found open houses to beon hand to answer financing questions.
"Very Useful" as an information source. In fact, 55To do this effectively, you need help. Ask friends or
percent of home buyers do look at open houses tofamily to actively pick up after people and run a
gather information. However, of the nine categoriesSwiffer around the floors. Request that home
listed where buyers first learned about the home theyshoppers put on hospital booties to help keep the
purchased, open houses was not even mentioned.floors clean. Plus, people like the idea that you're picky
Findings include:about keeping the house immaculate.
- Most people attending open houses are not seriousEven with all this work, the best outcome for you is
buyers.meeting the neighbors in your target area and finding
- Most open houses are held merely to appeasepeople who want to SELL their homes.
sellers.Most houses sell on MLS. This is because agents are
- Three out of four agents think open houses areworking with qualified buyers and watch the new
effective in interesting buyers in homes other that thanlistings. Agents like to show properties that are staged
the one being shown.to sell.