But it depends on the metro and if the house is attractive
Homes with open houses across the US sell for $9,046 more and stay on the market for seven fewer days compared to those without open houses, according to Redfin’s latest report.
Redfin analyzed homes with and without open houses listed in 2018 and compared their relative selling success, which was measured by sale-to-list price ratios and time on market.
"Holding an open house is an efficient way for sellers to get more eyes on a home, and a bigger pool of potential buyers can help lead to a higher ultimate sale price," Redfin Chief Economist Daryl Fairweather said. "In many areas, homes that are already primed for competition tend to be the ones with open houses because the listing agent knows it will attract a lot of attention and wants to set up a convenient way for multiple potential buyers to pop in at once instead of making several appointments for private tours."
However, the brokerage said the benefits associated with open houses differ in every metro and likely had more to do with the homes’ appeal than the open house.
Open houses in Miami mean faster sales
A Miami home with an open house during its first week on the market usually goes under contract within 27 days, compared with 38 days for its counterpart. Homes with open houses in the area also sold for 1.2% more relative to their list price than homes without, according to the report.
"I usually list properties on a Thursday or Friday, then hold an open house on Saturday or Sunday," said Jessica Johnson, a Redfin agent in Miami. “I also hold private showings because it's so important to get as many potential buyers into the home as possible. When homebuyers see other people at an open house, it can motivate them to place an offer more quickly than they otherwise would. I had two listings go under contract last week after just one weekend on the market. In both cases, the buyers first saw the home at the open house."
San Francisco’s selling price tops premiums in other metros
San Francisco homes with an open house during the first week sold for 7.9% more relative to their list price than homes without -- the largest premium of any metro area in the country. Homes with open houses in San Jose followed with a 5.2% increase in their sale prices and homes in Raleigh came in third, which were sold for 4.6% more.
"San Francisco real estate culture is dominated by open houses," said Miriam Westberg, a local Redfin agent. “The majority of my clients attend open houses because they know it's their best chance to see a competitive property or multiple properties on the same day. If a home in the area doesn't have an open house, it's often because it's either owner-occupied or tenant-occupied. Those homes tend to sell for a bit less than comparable homes with open houses because they're difficult to show and don't get as much traffic or as many offers."
Homes with open houses in San Francisco during week one spent seven days longer on the market than homes without, but Redfin said it didn’t mean open houses were “harmful.”
"It's standard here to host two weekends of open houses before accepting offers. Listing agents usually prefer 10 to 14 days of active on-market time, particularly for homes with open houses, before they'll set an offer date," Westberg said.
