Are Open Houses Being Underutilized?

By Mike Wheatley | July 18, 2014

Open houses can generate a lot of buyer traffic for a listing, but they are held for only a small fraction of listings. According to a HomeFinder.com study, open houses were held to reach potential buyers for only 6.3 percent of listings nationwide.

Image credit: Chefkeem via Pixabay.com

Here are some additional insights from the study:

Sunday is the most common day to host an open house.
A home is on the market for an average of seven days before holding an open house.
Seventy-seven percent of all open houses are held for listings that are single-family homes.
The median list price of a home hosting an open house is $339,990.
The following top five cities have the most open houses in the country: New York; Los Angeles; Washington, D.C.; Chicago; and Baltimore.

How can open houses benefit your business?

You know when and where open houses are taking place – but why should you hold one? Below are three ways holding an open house will benefit your business.

1. Create a more personal experience for potential buyers: While house hunting online may spark a buyer’s interest, nothing can replace seeing a home in person. Hosting an open house gives buyers an inside look into the house, the neighborhood and the lifestyle they could provide.

2. Establish a feedback loop with sellers: If your sellers won’t budge on price, use feedback from open house visitors to persuade your sellers to adjust the price. According to HomeFinder.com listing data, 26% of listings experienced a price decrease after an open house3. A small price decrease can make a significant difference in selling your listing.

3. Network and meet potential clients: According to Open Home Pro data from March 2014, 60% of visitors who signed into open houses via Open Home Pro did not have an agent yet4. This data shows that open houses offer a tremendous opportunity for agents to gain new clients.

Source: HomeFinder.com