When my son recently sold his home, it made me think more critically about a common real estate ritual: the open house. Most homeowners assume its purpose is simple—to help sell the house. But dig a little deeper and you’ll discover that the real beneficiary is often the listing agent, who uses your home as a platform to attract new clients. It’s a subtle bait-and-switch that works precisely because few people stop to question the surface-level story. And that’s the bigger lesson for business owners: when we blindly accept industry norms or go along with “how things are usually done,” we risk missing out on better outcomes. Skewed deals, lopsided partnerships, and missed opportunities often hide in plain sight. Those who learn to question assumptions, however, tend to find leverage where others see limitations.
Open Houses as a Recruiting Tool
For many real estate agents—especially newer ones or those without a strong portfolio of listings—open houses are a golden opportunity. But not necessarily in the way you think.
These events are not just about showcasing a home. They’re carefully staged platforms for meeting potential buyers—many of whom aren’t yet working with an agent. When someone walks into your home during an open house, the listing agent isn’t just evaluating them as a potential buyer for your property. They’re mentally asking:
Are they pre-qualified?
Are they shopping alone or with an agent?
Can I represent them on another home purchase?
In short, your house becomes a business card—a backdrop for the agent’s personality, local knowledge, and charm. If they impress, they might gain a new client… even if that client doesn’t buy your home.
Why This Works So Well for Agents
An open house is a low-cost, high-impact marketing tactic for agents. It allows them to:
Meet unrepresented buyers who may be shopping without a real estate agent
Showcase their expertise in staging, pricing, and neighborhood knowledge
Build their contact list by collecting names and phone numbers
Display their brand through signage, brochures, and online promotion
Every person who walks through that front door is a potential lead—whether they’re there to buy your house or simply exploring what’s available in the area. And let’s be honest, most serious buyers have already scoured listings online and may schedule private showings for homes that interest them. The truly motivated buyers don’t need cookies and balloons.
But Can an Open House Still Help Sell Your Home?
Sure, an open house can lead to a sale, but statistically, it’s a long shot. According to the National Association of Realtors, only a small percentage of homes are sold as a direct result of an open house. In fact, most sales happen because of online listings, buyer’s agents, or private tours—not because someone wandered in off the street.
If you’re planning to sell your home and your agent insists on doing an open house, it’s worth asking: Who benefits the most here?
The Broader Lesson—Look Deeper Before You Decide
This real estate insight is just one example of a much larger pattern in both business and life. We often accept surface-level explanations or go along with the commonly held belief without asking deeper questions.
We accept contract terms because “they’re standard.”
We sign up for services without comparing alternatives.
We make deals assuming equal benefit—when often, one side wins more than the other.
This kind of blind acceptance can lead to missed opportunities, skewed negotiations, and lopsided partnerships. In reality, the person who questions assumptions often comes out ahead.
As entrepreneur and investor Charlie Munger put it, “Invert, always invert.” Ask yourself, What’s the agent’s incentive? Or Who really benefits from this setup?
The next time you’re presented with a “standard” practice—whether it’s in real estate, business, or your personal life—pause and look under the surface. Ask yourself: Who benefits? What’s the real motive? And Is there a better way for me to approach this?
Because often, the best deals and insights are found not in the glossy brochure, but in the fine print—or the motive behind the smile.
Are you guilty of taking things at face value? What’s one area in your business or personal life where it might be worth digging deeper before making your next move?
