Why Do Real Estate Agents Hold Open Houses
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    Why do real estate agents hold open houses? Open houses have far more benefits to agents than to home sellers.
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Do Open Houses Sell Homes?
 
One of the questions I often get from clients is do open houses sell homes? Depending on who you ask you are bound to get a very different answer. Here is the absolute truth that many real estate agents don't want you to know. Open houses are usually attended by those who are not qualified to purchase, the neighbors and others that have nothing better to do than to look at a home on a weekend. They are not "real" buyers for the home being held open!
 
If this is true you might be wondering why do real estate agents hold open houses?
 
Folks one of the dirty little secrets in the real estate industry is that open houses are mainly for the real estate agents benefit NOT the sellers. How so Bill? Easy - the real estate agent uses the opportunity for anyone to come through in hopes of picking up prospects whether in the form of buyers or sellers.
 
So when someone asks me do open houses work the answer is always the same. Work for who? Do they work for the seller? Rarely. You see real buyers almost always will schedule a viewing with their real estate agent if they are serious about finding a home.
 
Can you imagine a buyer saying to themselves the perfect home has just come on the market but I am not going to look at it unless there is an open house this weekend. Fat chance! It isn’t happening. Real buyers never think that way - they want a freaking home to buy! Some real estate agents however, want you to believe that this is the case.
 
Lets Get Me Some Clients
 
Open houses are great prospecting activities for an agent. It’s as simple as that and the main reason why most agents do them.
 
The Real Estate agent holding the open house has the chance to potentially meet one of the neighbors who could also be thinking of selling their home in the very near future. The neighbor visits the open house and just like that the agent has a new potential client somewhere down the road.
 
The agent can also successfully pick up numerous buying prospects. For example lets assume the home that is holding the open house is listed at $500,000. It is not uncommon at all for potential buyers coming through to only be qualified to spend $400,000 or even less. People are curious by nature and have no problem when someone freely opens up the door to them. The owner of course is not going to be discounting their home 100k, so many of the people in attendance won’t be buying this home.
 
They can and likely will be buying a home for $400,000 though somewhere else! The Real Estate agent knows this and has just picked themselves up a potential client, as long as they have established a rapport with this person. An agent with a great personality, who can work a room, can easily pick up numerous potential clients.
 
Open Houses Are Not Necessary to Sell Homes
 
What home owners need to understand is that an open house is completely unnecessary to sell a home. Price your home correctly and you will see numerous scheduled appointments from qualified buyers. Remember there are 7 days in a week and 24 hours in a day. There is plenty of time available for real buyers to schedule showings. In other words there is nothing magical about the 2-3 hours that an agent opens up the doors for any Tom, Dick or Harry to come strolling through on a weekend.
 
By avoiding open houses sellers will not be opening their home to every stranger off the street many of which are NOT even qualified to purchase! This is a major drawback of holding an open house! Obviously there is no point in having unqualified buyers looking at your home. More importantly, you will not be taking a chance that somebody who has entered your home will be back later to case the joint because they have identified things they want.
 
Avoiding an open house is just plain smart. There are many thefts that occur either during an open house or at some point later in time when a thief comes back.
 
Will some agents try to convince you otherwise? Of course they will because they will not be able to use your home as their prospect train. You don’t need it and you don’t need them.
 
Trust me when I tell you - most top flight real estate agents do not spend their time hanging out in someones home waiting for it to sell. Take a look at some of the the in-depth articles referenced above that go over in great detail why you can pass on having an open house. Instead look for a real estate agent who has a track record of success.
 
When choosing a real estate agent to work with many people get caught up in things that don't matter. Picking a great Real Estate agent to work with starts with understanding the traits that are important including:
 
1.) Someone with a good track record in good and bad markets.
2.) Someone who understands how to price a home properly.
3.) Exceptional marketing skills.
4.) Understands the value of communication.
5.) Outstanding negotiating skills.
 
Choosing a fantastic real estate agent is an important aspect of the home selling process. In fact if you are picking an agent based on the fact they will sit in your home doing an open house on most weekends, you are making a big mistake. Top producing Real Estate agents do not spend their time sitting in someones home waiting for a buyer to show up.
 
Keep this in mind.....94% of all real estate business is done by 6% of the agents. Lots of agents starving for business will try to convince you that holding an open house is a wonderful idea. If I didn't know where my next sale was coming from and needed clients, I would probably be trying to convince sellers of this as well.
 
Hopefully this clears up why real estate agents hold open houses.
 
Other Helpful Open House and Home Selling Resources
 
Pros and cons of an open house via Rochester Real Estate Blog.
 
Use these additional resources to ultimately decide if you need to have an open house. Just be sure to understand that the reason why most real estate agents hold an open house is not because they believe an offer will be coming that day.
 
About the Author: The above Real Estate information on why do Real Estate agents hold open houses was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for the last 29+ Years.
 
Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!
I service Real Estate sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton and Uxbridge MA.