The Death of the Open House
The open house has been a staple of the real estate industry for the last century, but after a year and a half without them it begs the question: Are they still relevant?
Every Saturday morning, when the sun is just peaking over the horizon, prominent street corners of suburbia everywhere are slowly taken over by the plastic a-frames of local realtors.
These signs are there to send you through a dizzying maze of neighborhood streets until you arrive at your future home of your dreams..
The tradition of the open house dates back over a century. The first recorded open house, then called “open for inspection” took place in 1910. From that day forward, realtors have used this format to help connect potential buyers with sellers.
From its earliest inception, the goal of the open house was to give the public an opportunity to see some of the new architectural concepts and convenient technologies that builders were incorporating into homes after World War I.
It wasn’t until the 1930’s and 40’s however, that they became tools for marketing by the local Realtor. This marketing has evolved over the years offering everything from free snacks to door prizes for those who put their email on the list.
If you have ever been to an open house, you know what to expect here. Once you have followed the arrows to your destination and find a place to park, you enter a home and are greeted by one a few types of Realtors:
Details Dianna: “Hi, welcome in! This is a 3 bedroom 2 bath Ranch-Style home with 1,356 square feet on a 6,000 square foot lot. You’ll notice that the kitchen and baths have been recently remodeled and the flooring is a new hardwood laminate that we just had installed. The list price is 1.45 and we will be taking offers on Thursday at noon. Let me know if you have any questions!”
Laptop Larry: Doesn’t get up to greet you but offers a nod and a “Hi” from the staged arm chair in the corner or the bar stool at the kitchen counter. There is a laptop and some paperwork casually placed on the nearest flat surface set up as a remote work space. There may be a “let me know if I can answer questions for you.” but, for the most part you are on your own. This agent doesn’t bother you but doesn’t particularly help either. They know this thing is gonna sell.
Sign in Sally: “Hi there, before you look around if you could please sign in here on this iPad that would be great, The seller has asked that we keep track of everyone who is taking a look at the property.”
Coffee Carlo: “Hello, welcome in. Take a look around and let me know what you think. Oh, and don’t miss the cappuccino bar in the back!” gesturing to the barista set up in the backyard.
These are just a few examples of the kinds of approaches that realtors take when gearing up for the whirlwind weekend of open houses.
Now, I love a free cappuccino as much as the next person, but with inventory at an all time low the need for gimmicks and freebies to get buyers through the door is less a tool for helping sellers, and more an opportunity for agents to show off to other agents while collecting as many leads as possible.
What buyers need today more than anything else is real and honest information about what is happening in the local market. When you start your search at an open house the unfortunate truth is that you are already behind.
Serious buyers have a dedicated agent that is searching for properties along with them and providing access to each potential match well before the open house weekend. This commitment to urgency gives the savvy buyer the maximum amount of time to consider, ask questions, and do their due diligence, all before being asked to make a 1.5 million dollar decision in less than 7 days.
Statistically, homes in Santa Clara county are on the market for a mere 13 days as of the latest data from Santa Clara County’s Association of Realtors, but active agents know that most homes are listed on a Wednesday or Thursday and are sold by the following Tuesday.
Having this insight makes it easy to see why the buyer who is pursuing the open house scene is not in a very competitive position compared to those who are able to schedule private showings well before the home is open to the public.
Aside from the hustle required to get there, there are a few other practical reasons that a buyer may want to forgo the open house circuit.
1. It is crowded! How are you supposed to imagine your daily life in a space when there are 17 other groups walking through the space at the same time? Having time to be still and contemplate your needs against the layout and condition of the home becomes even more important when you are being asked to make quick decisions.
2. You need real information. When you rely on the agent at the open house to be your number one resource you may get all the facts but you might not have the help you need to interpret them. Having an outside perspective from an agent that clearly understands your needs beyond just how much you can afford gives you a better chance of feeling comfortable and confident in your decision making.
3. Time to ask questions. A home is the biggest purchase that most people make in their lifetime. Having time to ask questions and thoroughly understand the buying process is something that can be done with an agent well before you are standing in the front yard of the home you hope will be yours.
97% of all homebuyers are searching for homes online. Waiting until the weekend to go see them may be the key factor in how long it takes for you to go from looking for your new home to living in it.
If buying a home is on your list of to do’s, having a clear picture of your budget and your needs as well as a strategy for success, is far more important that just checking out a handful of homes every weekend.
So, knowing all of this, do we really need the open house? I would argue that the need for an open house is far less than it was back in 1910. In the wake of a global pandemic Realtors have had to up their game when it comes to great photos and many are now including floorplans along with 360 virtual tours. With better visibility for homes online it seems less likely that the average buyer would want to spend their weekend going from cowded house to crowded house in casual browsing mode. For serious buyers private showings are the best way to see a home before deciding to make an offer.
