Eazy Tips: The Pros & Cons Of An Open House In Real Estate
- October 5, 2021
Open houses are a very tricky subject in the real estate world. For some sellers, the idea of an open house is a dream, and for other sellers, it is more like a nightmare. There are also real estate agents who feel strongly for or against open houses, and some that are indifferent towards them.
An open house is a scheduled period of time in which a house is open for viewing by potential buyers. Open houses can attract interested buyers and lead to an offer, or alert the realtor to issues with the space.
The best way to know if you should have an open house when selling your home is to weigh the pros and cons. In this article, we will give you everything you need to know to decide if your house could benefit from an open house, as well as the positive and negative aspects of hosting one.
Open House Pros
1. Your House Is Open To All
An open house can accommodate more than just prospective buyers. Realtors who might want to team up on the sale and offer advice on ways to assist a home sell faster, also come.
2. You Are Creating a Low-Pressure Environment
An open house is usually a laid-back, low-pressure event. Potential buyers may feel more comfortable looking at the house when they know they aren’t having someone hard selling to them. Some buyers also like to look at the home in great detail without a small time limit and pressure.
3. Increased Awareness
Open houses can be a great form of promotion. This can be done through posting on platforms such as Facebook, Instagram, Zillow, and Realtor. Street signs are a must for directional purposes and to attract spontaneous and curious buyers. Your house can also be promoted through word of mouth by family and friends, this may attract more serious buyers.
4. More Time to Prepare
An open house is different from a regular showing because you will have time to prepare the house. With a showing, buyers can make appointments on short notice, leaving you little time to get your home ready. During this time, you can make sure to keep your home looking its best, but realistically it is hard to maintain when you are living there.’
With an open house, you will have time to plan, stage, and clear everyday clutter. This is more beneficial for the potential buyers because they are seeing the home at its best. It is also helpful for them to envision what furniture they can work into the space.
5. Additional Exposure
One of the most essential tasks of a Realtor acting on behalf of a homeowner is ensuring their client’s home is getting enough exposure. Open houses can give extra exposure through promotional advertising like newspaper ads, internet ads, and street signs.
Just make sure you understand that an open house is not a magic bullet. Some real estate agents pump up this activity in hopes the seller will say yes to them hosting one. Quite often this sets the real estate agent up for failure when the open house doesn’t bring a sale. Additionally, lots of owners will expect agents to continue to do open houses until the home sells.
6. Actual Browsing
The internet may be the fastest way to find a home, but nothing overcomes walking through a house and seeing it first-hand. Besides, a considerable number of people don’t make appointments until they are really ready to buy a home. They enjoy the benefit of just attending an open house. If they happen to become serious they can always reach out to a local agent.
Open houses are often a place where a potential buyer can drop in from the street. Buying a home is a process that may appear strange to many people. Open houses encourage just about anyone who doesn’t know about buying a home into acquiring one.
The planned open house on a weekend can also be convenient at times for sellers. They can block off a few hours in the day and ask anyone interested to come at that time.
Open House Cons
1. Unqualified Buyers
A common con that comes from open houses is unqualified buyers. You want the people walking through and looking at your house to be able to afford it.
Open houses can also attract people in the neighborhood that are just curious to see how your house compares to theirs. It is likely to have some people not seriously looking at the house. It is very difficult to do a pre-screening of people attending the open house so keep this in mind as a risk factor.
2. Security Issues
Open houses allow people to look into your home with little supervision. This can lead to people stealing your personal items or vandalizing your property. It can also give criminals an opportunity to investigate your home before they commit a crime. You should make sure to hide your valuables in a safe space to lower the chance of something bad happening.
3. Less One-On-One Time With Potential Buyers
There will usually be more people than you and your real estate agent at the open house. You will not be able to give everyone personal attention and comments on the home. Sometimes this one-on-one time can push the potential buyer in the right direction.
4. Excessive Stress
Considering the housing market being is tight these days, first impressions are more critical than ever. Hosting an open house is just one more thing to drive a seller crazy. Nevertheless, holding the same open house repeatedly can send out the wrong message, such as there’s something wrong with the house.
In conclusion, when thinking about having an open house you need to weigh the advantages against the disadvantages. Keep in mind that a good real estate agent should sell your home regardless of whether you host one or not. Also, we are in the digital age where countless houses are sold every day where the owners have chosen not to have strangers inside. The choice is yours!