To Hold or Not to Hold an Open House: The Arguments For and Against

As I was packing up from another successful open house the sellers came home, right on time. We began to chat and before we knew it, we had been chatting for about 20-30 minutes. Before I had a chance to take the open house signs down outside on the driveway, an interested potential homebuyer burst in the door–it was obvious he was there for the open house. 

The homeowners had been away during the open house and came home briefly to get ready for another appointment later that day. So when the fellow came in the door, ready to see the house, the homeowners found themselves with a stranger inside their home and in a bit of a pickle? We had just closed the blinds, turned off all the lights and they were making a quick lunch. They weren’t ready for more guests but they were still excited about having someone new see the home that they’re so proud of and still wanted to sell.

This is how it goes with open houses. Homeowners wrestle with questions like: Do we bend over backwards to accommodate everybody who wants to see the house? What if we just get looky-loos? Do I really want my neighbor looking for design ideas in my home? But shouldn’t we try everything?

There is a case to be made that an open house could be the exact marketing instrument that enables your home to be seen by more potential homebuyers and, more importantly, the right buyer. Yet, statistics show that it is highly unlikely (3-6% chance) that the open house will be the reason a potential buyer decides to buy your home over someone else's.

Of course there are several factors that can impact the success of an open house, including location within a community, how well it’s advertised, how well it’s signed, how widely appealing is the house you’re selling, the weather, events & sentiment of the local community, and regional norms. 

Regional norms? For example, in many areas in California, open houses are more widely attended in general than they are generally in Colorado. Great weather days (and we have many) can keep people engaged in outdoor activities, rather than seeing homes. Yet a dedicated buyer in need will take the time to schedule a private showing if they need to see a particular property. Conversely, however, bad weather can keep people away as well. A cold, snowy Saturday in February isn’t likely to bring people who aren’t serious enough about their home search to set up private showings and get them off their couch, into the snow, out of the car, and over to your cozy house.

So the question remains: should we have an open house or is it not worth it?

Allow me to share a list of reasons why you might consider an open house as part of the marketing your agent does to get your home sold. I’ll also share with you reasons why maybe, just maybe, you might not want to open your house up to neighbors and unrepresented strangers without agents.

Reasons to Have an Open House

Increased Exposure: One of the most significant advantages of hosting an open house is the exposure it provides for your property. Open houses attract not only serious buyers but also curious neighbors and passersby who might not have seen your listing online. This increased foot traffic and buzz can potentially lead to more offers.

Digital Exposure: Interestingly, it's usually those who respond to online digital marketing that are the most likely to be serious about your home, rather than those who just follow the signs set up in your neighborhood pointing them to a property they likely aren't planning to buy. Serious open house attendees are the people who have digital home search apps notifying them of open house times. In fact, it’s the digital marketing itself that can be more effective and bring more awareness to the home-buying public about the house listing than the actual open house itself. Mobile home-search apps have special notifications and often, separate pages dedicated to open houses. Listings with open houses advertised often land at the top of an online search. Having your home listed there may bring extra attention to it from those watching for fresh listings and new options.

Building Buzz: Open houses can give you a chance to add an element of competition to your listing. When showings and open houses overlap, there can be multiple parties in the home at the same time and that can brew a sense of urgency in those who are concerned someone else might buy the home first. A little competition never hurt anyone right? And imagine what competition could do for the price of your home.

Face-to-Face Interaction: Open houses allow your agent to interact with potential buyers directly. This personal touch can help build rapport, answer questions, and address concerns in real-time. Buyers often appreciate the opportunity to speak with the listing agent directly, and in turn, your agent can size up potential buyers and gain clues from conversations that can be valuable in a negotiation.

Immediate Feedback: Hosting an open house can provide instant feedback. You can gauge visitor reactions and identify potential issues with your home's presentation. This valuable input can help you make quick adjustments to enhance your property's appeal.

Time Efficiency: By designating a specific time for open houses, you can minimize the disruptions to your daily life caused by sporadic showings. This concentrated effort can help you maintain your privacy while still accommodating potential buyers.

Reasons Not to Have an Open House

Privacy Concerns: Some homeowners value their privacy above all else. If you're uncomfortable with the idea of strangers wandering through your home, an open house might not be the right choice for you. Sure, most homebuyers will be strangers to you, but ones accompanied by another agent who has prequalified them first makes for a more private scenario. Privacy is a valid concern, especially if you have personal items or valuable belongings you'd rather keep out of sight.

Security Risks: While real estate agents take precautions to ensure the safety of your property during an open house, there is always a small risk of theft or damage. If you have private, valuable or irreplaceable items in your home, you may prefer to limit showings to serious, pre-qualified buyers or certainly make the effort to put them out of reach.

Unqualified Visitors: Open houses can attract curious individuals who have no intention of buying but are merely interested in browsing homes for fun. This can lead to wasted time and frustration if you're trying to sell quickly or avoid unnecessary interruptions.

Inconvenience: Preparing your home for an open house can be time-consuming and stressful. Cleaning, staging, and vacating the premises for several hours can be a significant inconvenience, especially if you have a busy schedule or family to accommodate. By contrast, when you prepare for a showing, you’re expecting a prequalified homebuyer who chose specifically to see your house, rather than someone who saw the signs or smelled the cookies.

Limited Impact: In some markets, open houses are less effective at driving sales. This can vary from state to state, or neighborhood to neighborhood. If your area primarily relies on online listings and private showings, the effort and resources required for an open house may not be justified.

Bottom Line

In the end, the decision to host an open house or not should be based on your specific circumstances and priorities. The Altitude Group can provide valuable guidance tailored to your situation and market conditions. Remember that there's no one-size-fits-all answer, and what works for one seller may not work for another. So, weigh the pros and cons carefully to make the best choice for your home-selling journey.