In 2002, 16% of homebuyers identified their new homes by attending an open house. The National Association of Realtors 2022 Profile of Home Buyers and Sellers report shows that two decades later that number plummeted to 4%.
The coronavirus pandemic further solidified the declining popularity of open houses as more buyers turn to online searches to find their dream homes.
Data from the report states only 5% of buyers frequently use open houses, while 23% occasionally do and 72% rarely do.
Furthermore, when asked if an open house is a valuable source of information during a home search, only 10% say they’re very useful, whereas 22% say somewhat useful, and 68% state they aren’t useful.
Britta Nancarrow with West + Main says it may be time to end the practice.
“Unless you can advertise them well, open houses may not generate much traffic,” she says. “The era of just putting up the garage sale style sign is over.”
Esperanza Wardroup with West + Main says having an open house used to be a default marketing strategy, but realtors need to consider whether doing so now will be beneficial.
If the location is remote or in an area with a lot of new home construction, holding an open house may generate little traffic.
Instead, Wardroup says realtors need to be more intentional. “You must evaluate the property and determine what methods are best to market it.”
Amy Terry with 8z says the open house allows neighbors to view homes for sale. While some may be looky-loos curious about their neighbor’s home, others may know a potential buyer.
She sends pending sale notices to the home’s 100 closest neighbors and encourages them to attend an open house.
“They are a great resource. They usually have family or friends they want to move in the neighborhood and will recommend the home to them,” Terry says.
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Wardroup says open houses also can be effective for other realtors. Before sharing it with clients, they can scout a property to determine its potential.
Most importantly for realtors, the open house can be a powerful and effective way to introduce them to potential clients.
“Sometimes you’ll have someone come in who’s just starting the home-buying process or thinking about starting the process,” Terry says. “It’s a chance for us to meet a buyer at the start of the process.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
