Open houses are NOT about drawing potential buyers to a property. The hosting agent merely wants to meet potential clients to purchase or sell other properties. Less than one percent of homes sell through open houses. According to Multiple Listing Service statistics, a typical agent closes, on average, a single deal per month. For the agent's company to make a profit, and for the agent to survive on a single monthly commission, the commission has to be reasonably high.
Technology permits faster and more accurate matches between sellers and buyers.
It eliminates costly, unproductive marketing techniques and allows agents, especially listing agents, to focus on their core business. Companies would remain profitable even as they lower listing company commissions, at the same time listing agents' sales volume and incomes rise. Buyers' agents remain well-compensated and home sellers save thousands. It's worth asking the next time you're thinking about selling your home. Ken Sutton is CEO of Sutton Real Estate, Inc., based in Mill Creek.