You’re probably familiar with the concept of open houses.

A home goes on the market, and then the listing agent arranges a chunk of time (usually a few hours on a weekend) during which the doors are opened and anyone is welcome to come in and view the property.

It’s a tried-and-true part of real estate. Right?

Open houses were once common practice, but people (including real estate agents) are beginning to wonder whether these mass showings are really worth the time and effort.

Whether you are a seller or a buyer, there are pros and cons to open houses.

Pro: Accessible for first-time home buyers

Starting out the process of buying your first home can be unfamiliar, confusing, and overwhelming. More people are comfortable with the open house format because there is very little involved: simply walk in and look around.

As a buyer, you don’t have to worry about having an agent when going to open houses. This is great if you haven’t been able to find the right person to represent you yet.

By attracting more first-time home buyers, open-houses have the potential to make the market more competitive. This is beneficial to the seller, but not to buyers.

Con: Low probability of sale

The fact is that few of the people who attend open houses actually buy the house as a result of their visit.

One reason for this is that a lot of open house attendees aren’t serious buyers. Nosy neighbours and curious passers-by may come in just to get a look at the place. Sellers have far more success with booking private showings from seriously interested buyers than with holding open houses. After all, houses sell all the time without open houses.

Buyers who stop into an open house are also likely to book a secondary showing if they are interested, as the open house doesn’t always provide them with the opportunity to view the house as they would like (especially if the house is crowded).

Pro: Better listing exposure

For a seller, one of the main benefits of an open house is the increased exposure. Additional signage and marketing around the open house can get more eyes on the listing. An open house can also attract the attention of individuals who may not have been in the market for a new home.

An open house creates a sense of urgency around the sale of the house. This marketing tactic, while potentially beneficial for sellers, can be annoying for buyers as it leads them to believe that there may be more interest or competition for the listing than there actually is.

Con: Crime and damage

There are no screening criteria for open houses. Unfortunately, that can allow for some less than savoury characters coming into the home.

As a seller, you might want to consider the possibility of theft and damage before you hold an open house. With a number of people moving in and out of your house, it will be hard for your agent to keep an eye on everyone. As a result, there is a potential that someone could walk away with something valuable if you failed to remove it from the house beforehand. Items like jewellery, electronics, and prescription medications are best kept somewhere else while your house is being shown.

There have also been incidents of individuals casing a home in order to break in at a later time.

Empty houses are of particular concern as they are common targets of break-ins and vandalism.

Pro: Takes pressure off of buyers

Unlike a showing, an open house is very laid back. There aren’t the same sort of time constraints or pressures for buyers.

Often, at an open house, you can walk around relatively unsupervised. By that we mean that the selling agent is unlikely to follow people around the house, and buyers generally aren’t accompanied by their own agents either. This takes away some of the awkwardness of examining the space and imagining yourself in it while someone watches you – unless you have a pushy listing agent.

Open houses also give buyers a chance to get a better understanding of the space than they would from pictures (or even videos). The feel of the space, the size and functionality – all of these things are best experienced in person. And buyers can be much more confident about a space after having been in it. Of course, private showings serve the same function, but may not give people the same sort of freedom to explore the space.

Con: The agent may end up representing both sides

A lesser-known fact about open houses is that agents frequently use them as a tool to prospect for new clients. While the main goal is greater exposure for the listing, agents know that a lot of attendees don’t have agents or are just starting to get a feel for the market.

If the open house does drum up interest with an unrepresented buyer, that person may approach the listing agent to get a deal going. The problem then is that both parties may feel that their interests aren’t fully being considered or prioritized.

Is an open house the right choice?

Most savvy buyers these days will start their home search online. By looking through digital listings, you can often get a general sense of the property without even having to set foot inside. This lets buyers weed out the houses that aren’t of interest to them, and focus their efforts on ones that are.

Good real estate agents will also invest in high-quality photos, information packages, and marketing materials that make this process even more convenient and worthwhile. Video tours and virtual walk-thoughs are becoming popular tools as well, defeating the need for an open house as a preliminary look at a property.

And yet, open houses are still one of the many tools of the trade in real estate. Perhaps that is because there are still some advantages, especially for buyers who want a simple and stress-free way to explore their options. But, for sellers, the disadvantages tend to outweigh the benefits.

Keep these pros and cons in mind next time you consider an open house.