Seller Advice: Are open houses beneficial?

February 06, 2015

Seller Advice: Are open houses beneficial?

Are open houses beneficial?

Many people especially sellers believe that conducting open houses can help them sell their homes fast. Some real estate agents will also talk you into conducting an open house to attract more potential buyers. But is it really worth it and how does it fair when it comes to numbers?

The basics and numbers:

What is an open house? While many of us know what it means, it is best to start with the basics – according to Wikipedia, it is an occasion when a property or real estate for sale can be viewed by prospective buyers without an appointment. This is where properties are kept clean and immaculate to attract potential buyers, and more often hors d’oeurves is served. However, is it worth the hassle? Numbers would say that less than 2% of homes sold are a direct result of a buyer visiting an open house unaccompanied by an agent. Buyers with the genuine intention to purchase a home are those accompanied with a real estate agent and schedule an appointment.

Cons of Open Houses:

Attracting the wrong kind of buyers – conducting open houses have been quite beneficial in the past, but with the emergence of technology real and genuine buyers would be rare to walk in through your property and write a check or hand their escrow deposit for your home. They can simply get online and search the web for their dream home, schedule an appointment with a real estate agent and the real transaction takes place. The other part of the story is that most people who walk to open houses are just to satisfy their curiosity on how the property look like from the inside, those who are just getting decorating ideas for their homes, or they are interested with the property however they currently do not have the budget or money to purchase the property as expensive as yours. Qualification of a buyer is also put into question. Will they be qualified for a mortgage loan or such things? Will there be a way to qualify a buyer to purchase your home?

Attracting burglars – while this may sound so obscene but when different types of people come through the door and you or your real estate agent may not be able to track who comes in and out your home. This means that your home may be subjected without supervision and easily pick up some of your valuables. Other people can take advantage by devising a way to burglary when nobody is there. It could sound really scary, however, you can prevent this by making sure that you look over and conduct a thorough inspection after it is over and ensure that all possible entrance are secure.

Advertising – open houses are a great way to meet new people. Some real estate agents would prefer to conduct open houses in order to expand their professional network. This is because an open house is an event wherein they can meet your neighbors who might be thinking into selling their home and potentially hire your real estate agent to represent them to sell their house, etc. Another way to advertise is by branding – which can usually be seen from large scale real estate companies.

These are just some of the drawbacks when holding open houses. However, when hiring a good real estate agent, an open house should not be the main priority. A good real estate agent will be able to help you to sell your home even without this component because going to the bottom line – a real, genuine and legitimate buyer will schedule to see your home regardless if there is an open house or not. If they are interested then they will find a way to see your home.

I am not saying that conducting open houses is a bad thing or should NEVER be done; it can still be a great way to attract potential buyers. However, this should not be the top priority or something that is on the “must do” list. When you find a good real estate agent, he or she will be able to help you sell your home regardless of what the channel or avenue of selling your agent uses.

Source: http://blog.rismedia.com/2015/open-house-necessary/