A blog cannot deal with all aspects of a subject and is not intended to replace professional advice. It's purpose is to highlight information and identify areas of possible interest. Anyone wishing to discuss this blog or to make any comments or suggestions about this blog is invited to do so by either posting comments or emailing me directly.
April 30, 2012
Video: Do Open Houses Help Sell Homes?
Source: RedFin - used under standard YouTube license terms.
According to an American national, volume-based, real estate brokerage firm, RedFin, when an open house is held within the first week, a home is 13 percentage points more likely to sell than not having an open house at all, and 26 percentage points more likely to sell than if an open house is held sometime after the first week.
Do open houses work in all cities? No. In Calgary, the jury is out. But you'll see them - each and every week! It's how many new buyers get to see home styles - but they risk being sold to, versus helped in the buying process. It's also how many agents find client prospects without spending a dime on advertising. As many real estate agent trainers say, "Use open houses as lead generators." Others say, "Get busy and you'll get good!" We always say to buyers, find your agent first - well before you start looking at homes! A good agent will show you styles in a much more efficient manner.
Is there any trick, or "magic", to getting your home sold by having your listing agent hold an open house in the first week? No. It's a matter of statistics.
A good listing agent will have a variety of tools in their toolbag and an open house is just one of many. An agent that uses open houses probably has a "tool chest" of marketing avenues being used versus just a "tool bag." If you're up for an open house, if asked, a good agent will most likely do it in the first week after taking the listing.
An agent proposing an open house after that first weekend is likely looking for that "hail Mary" pass and trying it out of desperation. What is more likely is that they're trying to find additional clients. Be wary if it's not the listing agent that does the open house and they delegate it to another agent. The question to ask of them is: "Are they representing you, or trolling for buyer prospects?"
Did you know, the vast majority of activity on a home for sale happens in the first two weeks? It's not because the home gets "shop worn" after that time, but simply because there is usually a whole inventory of hungry buyers with their agents in tow ready to pounce on the newest listings. After the first couple of weeks you're relying on new buyers slowing coming into the market. If the home isn't sold in the first couple of weeks, either there was something terribly wrong with the execution of their marketing plan (photography, marketing copy, MLS® System load) - or - the price was incorrect for the then current market.
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