Open houses are a highly debated topic both by home owners and real estate professionals alike. In fact, this article is sure to spark some debate between the two.
Some seller’s insist open houses are will guarantee the sale of their home. Others will want nothing to do with them. The same can be said about some real estate professionals. Some will swear that open houses are critical , other realtors won’t have even a single viewing!
So, if you’re selling a home, should you have open houses? The question is a trick one, so we’ve compiled some pros and cons for you in this article. Hopefully, it’ll clear up some of your questions.
Pros To Holding Open Houses
You’ll Attract Newbie Buyers
Buying a home is not a process most are familiar with, especially first time home buyers. Some buyer’s don’t even know whether they should contact a Realtor or a bank first when buying a home. With the overwhelming amount of information out there, many first time buyers begin by going to an open house, just to get their feet wet.
A positive to holding an open house is the possibility of attracting a buyer who is new to the process. A home buyer who sees the sign on the corner might stop in for more information. That makes a great opportunity for a realtor to talk about the highlights of that home, or help those buyers find one more suited to them.
You’ll get coveted buyer traffic.
Choosing a Realtor based solely on the fact they will hold open houses every week is one of the biggest mistakes seller’s make when choosing a Realtor. One of the most important things for a Realtor selling a home is making sure their clients home is getting a ton of exposure. Without maximum exposure and a strong marketing system, the chances of a home selling are greatly reduced.
Whether it’s street signs, newspaper ads, or internet ads that are promoting the open house, having an open house can lead to additional exposure. (Psst. do all these ad form seem a little overwhelming? Why do the work when the marketing experts at the Blake Cory Home Selling Team will do it for you? All you have to do is close the deal!)
You’ll have buyers in a relaxed mood, perfect for making a sale.
Open houses, in general, are very laid back events. The majority of real estate professionals who host open houses let buyers tour the home with little to no pressure. Its a relaxed environment where the realtors only job is to help the potential buyer see themselves in the home.
Use this opportunity to really help the buyer see what makes them the best potential owner of that home. And if they aren’t? No worries! As a real estate agent you are their best resource for finding the home they do belong in.
Cons To Holding Open Houses
You’ll be doing a lot of work for little payout
Are open houses necessary to sell a home? The answer is absolutely not! The percentage of homes that actually sell as a result of an open house is less than 2-3%.
The majority of homes are actually sold when a buyer has a Realtor, requests an appointment, and tours your home privately. The crowd that an open house attracts is more than likely not going to be the crowd that is going to purchase the home.
You’ll have to filter through a lot of unqualified buyers
An open house is just that, open. The people that come through are completely unvetted and many of them aren’t even in the market for a new home. Of the home buyers you do get, even fewer are pre-approved for a mortgage that matches the price of the home.
The flip side? The buyers may be right for other homes you have for sale on the market. You can a arrange a private viewing for one of those. 68% of homes are sold through private viewings, and a good real estate agent always has a diverse portfolio of home ready for any kind of buyer.
You’ll have to deal with Nosy Neighbors
Nosy neighbors love to stop at an open house to see how their neighbors home compares to their own. They talk loudly in front of viewers about the things their homes have that the show homes lack, about new build in the area and how the neighborhood kids won’t turn down their music. Either way, nosy neighbors can be more trouble than they’re worth.
And then there are lookie-loos. A “lookie-loo” is a person who stops at open houses with absolutely no intention of buying a home. Sounds pretty silly, right? It happens quite often and the fact is, these people are never going to buy the home and are just looking because they don’t have anything better to do.
The pros and cons of open houses need to be carefully considered before deciding if its worth it for your marketing strategy. Sometimes its best just to keep the seller happy, other times open house are a great way to showcase aspects of the home that just aren’t translating online.
One way or the other the first step to a successful sale is a qualified realtor. If you need an expert realtor of if your looking to be trained to sell homes for top dollar, in the shortest amount of time possible, reach out to Blake Cory Home Selling Team. We’ve got your back.