Will an Open House sell your listing?

Will an Open House sell your listing?

To answer the question directly, the short answer is “no.” Open houses do not sell houses. The longer answer is a bit more complicated. So, why don’t open houses sell houses?

There are three reasons, and three reasons only, why a house sells or does not sell. These are:

Location is out of the seller’s and the listing agent’s control. Condition is more within one’s control. A home can be remodeled. Deferred maintenance can be repaired. A home can be painted or landscaped to increase curb appeal. Of course, these things cost money. And sometimes, costs incurred may not be recouped. Addressing condition comes with balance and risk.

That leaves price. This is the one thing entirely within the control of the seller. If a home is priced right, it will sell. In this market, it should sell quickly. At most price points, in today’s terms that means inside of 10-14 days.

Showings are more important than open houses. Showings occur with qualified buyers. The rule to go by is this: if you come on the market and you’re not getting showings, the price is too high. If you don’t have an offer on the table within 3 weeks it means the market has rejected your price.

Recently I had a discussion with a colleague in another large market in Kansas. We were discussing and comparing market environments and trends. When asked whether or not they hold open houses on listings, this agent’s response was quick and to the point: “Accurately priced homes don’t need open houses.”

If the house is overpriced, no amount of open houses will convince a buyer to make an offer. The market sets the sales price. Not the seller, not the listing agent, not the buyer, not the buyer agent. There is no fooling the market.

Open houses do have one primary function and that is an opportunity for the listing agent to meet potentially unrepresented buyers. A chance to meet new clients or neighbors who might turn into future listings. If the goal is to sell then getting the price right, either at first or through a series of price corrections, is the only way the market will deliver results.