Lots of people like to do an Open House — Realtors, home sellers.  Lots of home sellers ask about Open Houses almost as soon as the ink is dry on the Listing Agreement or they may even ask as part of the interview process when they’re looking for a listing agent.  ”When will you do the first Open House?” and it’s twin brother, “How many Open Houses will you do for us?”

Back in the day, Open Houses may have been somewhat effective.  In today’s world, they don’t do much.

Here’s why.

The Yard Sign

Most homes have a yard sign right out front that says this house is for sale.  It has contact information on it for people to contact the Listing Agent (the same person likely to be sitting inside an Open House).  Sometimes, it may have a number that can be texted so passers-by can get immediate response to questions.  Usually, there is a website that can be looked at in the event the occasional drive-by curiosity shopper doesn’t want to talk to a human being (aka “salesperson” who will trick them into spending hundreds of thousands of dollars on a house).

The Yard Sign is a great selling tool that can put the “just looking” shopper or neighbor in touch with someone who knows about the house.

The Internet

There was a time when there was no Internet and there was even a time when the Internet didn’t have as much information as it does now. Those days are gone.  Now, the Internet can do everything except  buy the house for you. Here’s what you can find:

• Address
• Features of the house
• Price of the house
• Interior and exterior photos of the house (many of my clients tell me they won’t even consider physically visiting a house unless they see photos on the Internet first)
• neighborhood amenities
• nearby schools
• nearby shopping
• nearby transportation
• recent sales of similar homes in the neighborhood
• other homes that are for sale in the neighborhood
• Contact information for the person who represents the seller (i.e., the Listing Agent)

If after doing some online research and maybe doing a drive-by of the house and scoping out the neighborhood you still want to see inside you can go to…

The Buyer’s Agent

Ever since the late ’90s, there has been this thing called Buyer Agency. That’s a relationship between a home buyer and Realtor whereby the Realtor represents the interests of the home buyer and only the home buyer.  They are not at all interested in representing the interests of the home seller.  They get compensated through an agreement either with the buyer directly or in cooperation with the other Realtor.  The home seller doesn’t pay a Buyer’s Agent.

If, after looking online and scouting out the area, a potential home buyer is still considering a particular home, they should have a Buyer’s Agent that can call up to schedule an appointment to see the house. It’s kind of like their own little private Open House.  In fact, I tell my clients that if they want to make it feel like an Open House, I’ll bring the cookies, even if it’s 3 o’clock on a Wednesday afternoon.

Your Neighbors and the Listing Agent

Your neighbors love Open Houses because they can come by and see what type of decorating taste you have.  They can see if you’ve updated your kitchen and bathrooms. They can compare, in their own mind, your house to their house in the event they are thinking of selling their house.  ”Geeze”, they may be thinking, “My place is much better than this place.  I should be able to get another $10,000.”

This comparison by the neighbors is why Listing Agents love Open Houses.  They want to be the ones seen as the eager beaver so that when the time comes for the neighbors to sell, they’ll remember the Listing Agent in the Open House. You see, it has nothing to do with selling the Open House.  It has everything to do with marketing our own services to the neighbors.

“Look at me! I’m willing to blow off my Sunday afternoon sitting in your living room chatting up the neighbors so I might get some more business down the road!”