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Open House: Not Worth It

Posted August 15th, 2008 under smart selling, myths and truths. Updated October 7th, 2011

In recent years, especially during the seller's market, agents have promoted the idea of having an open house (sometimes prepared with home staging) as a way to attract the interest of buyers.

But do open houses really accomplish anything?

On the surface, having an open house seems like common sense. The problem is, many times an open house is not what buyers are looking for. If you were buying a home, would you just travel across the countryside visiting every open house you saw, hoping to stumble across the right home on the right day? Or would you try to narrow down your options ahead of time, either by searching MLS or having an agent search for you?

The reality is, most serious buyers pre-select specific homes that meet their budgets and requirements, and then schedule a private showing through their agent. Serious buyers do not use open houses to find potential homes to buy, they use MLS or their agent.

This is backed up by research showing that less than 1% of homes that have open houses are sold as a direct result of the open house! That means the other 99% received no direct benefit from holding the open house. A pretty poor track record!

So if serious buyers don't visit open houses, who does visit an open house? Unfortunately, most of them fall into one of two categories: time-wasters and criminals.

The time-wasters include nosy neighbours who show up just to satisfy their curiosity, would-be decorators looking for ideas (you'd be surprised how many of these you get), and unqualified home buyers who don't have a clear idea of their needs or budget.

The unqualified buyer is the person many agents are really holding the open house for. These buyers do not have a set budget or ideal home, and are in need of guidance. Therefore, there is a good chance they may become a client of the agent, though they never make an offer on the home being shown. Many agents will admit that an open house can bring them new clients, but does little to sell the home itself. Meanwhile, some unscrupulous agents go as far as pretending that open houses lead to "multiple offers", which are only really caused by an underpriced listing.

(Granted, some agents hold open houses because their clients ask for it, thinking it will help sell their home. An agent that advises against the open house may come across as lazy or uncooperative, so it can be a difficult situation.)

Aside from the time-wasters who attend your open house, the second category of people is the one you need to be even more concerned about: criminals.

Some are petty thieves. They often arrive in a group, usually posing as a family. While one person distracts the agent, another will look through the drawers for valuables. Or, the "children" will disappear (on cue) into other rooms so the "parents" can quickly check closets and drawers. One way to combat this problem is to only allow as many people through as you can supervise, but even this solution doesn't always work. Many people are in the habit of leaving valuables in plain sight in their bedroom or other interior rooms, as strangers would normally never be allowed there. I take all precautions and have still had jewelry disappear during an open house.

Beyond petty thieves, there are also "professional" criminals who use the open house to plan and prepare for a burglary. When you think about it, what better way to case a house than to take a guided tour of the interior? I have found basement windows unlocked after an open house. No doubt someone planned to return later to extract valuables they had seen in other rooms.

The fact is, no matter how closely you supervise people, you are still exposing the floor plan and security systems of your home to the public.

So, let's take all the facts into account:

• 99% of the time, an open house will not directly result in a sale
• Open houses risk the security of your home and your valuables
• Open houses require time and effort to prepare

Does this really seem worthwhile?

In the end, if your home is priced properly, you will attract plenty of interest without the hassle and risk of an open house. So don't be afraid to skip the open house entirely.

Got a question about open houses? Just ask me, I'll be happy to help.