Why would a seller not want an open house?
I have some new clients who have been shopping on their own through open houses. Once we got going, they noticed an MLS listing with no open house. We made an appointment to see it. There was a page on the table with “offers being presented 3 PM on Monday” written on it. They were new enough at the hunt to be confused that there can be a bidding war called without an open house. Yet, I’d seen it before. Open houses are a common way to market a property, but it is not a foregone conclusion that it is the best way.
They couldn’t let it go, “why would a seller not want an open house?” they asked. I told them why.
First and foremost is security. Open houses invite anyone and everyone into the house. This welcomes nosy neighbors, klutzes and -- once in a while -- people of bad intent. Things get broken, things get dirty, and sometimes things go missing. At an open house, there will be one agent to watch people in five or more rooms. Even an agent who is paying attention can’t keep an eye on everything in that situation. Therefore, some sellers demand appointments only. In that case, there will be one agent there with one party of buyers; a much better ratio for keeping house-hunters from intentionally or unintentionally damaging the property.
Second is privacy. Open houses invite anyone and everyone. The goal of the seller is to get qualified buyers into the house. Sellers get no value added when they just open the doors to the curious. By eschewing open houses, the seller is limiting the visits to people some agent thinks might buy it.
Open houses are not always great marketing. What a seller’s agent is hoping for is a wave of enthusiasm to run through the open house. They want to spark buyer’s competitive mode in regard to wanting the house. That is the emotional game of the popular open house.
Sometimes it works, but sometimes it backfires. Here are some examples:
1. There was an open house I was at last year that was a very nice house, in its bones. But the seller was a smoker. The open house had a murmur of “this house stinks” running through it. The same thing can happen with murmurs of “knob and tube,” “asbestos,” “ugly,” “old windows” and such.
2. Crowding. If there are too many people, or a loud (unhappy) child, the house will seem smaller and uninviting.
3. This is a ridiculous time in our economic history to be participating in bidding wars. Buyers are refusing. I am hoping more will join the refuseniks.
Sellers, what do you think? Did you feel comfortable with your open house? Did you choose not to have one?
Buyers, are open houses convenient and do you like them? Have you been turned off by other buyers at open houses?
