Open Houses: What You Need to Know
One of the biggest questions plaguing homeowners when it comes time to sell their property is whether or not they should hold an open house. While they can certainly be a hassle, on the whole they’re a lot more convenient than individual showings to buyers who may or not be all that serious (or qualified, for that matter). For the seller, instead of having to clean the home and vacate it 10 times during the week, a two-hour Sunday open house allows as many people as possible to take their time and view the home thoroughly, which is arguably more efficient, even in the Digital Age where looking at homes is a matter of clicking a button. On the flip side, open houses benefit buyers as well by allowing them to present themselves as serious contenders on the market.
Open houses are a hassle, but no more so than individual showings, at least for a seller or agent. At their most basic level, they involve opening the home to potential buyers of all stripes with even a passing interest, for the sole purpose of viewing the home, and getting as many of them to check the place out in a short amount of time. Obviously, these potential buyers are often not vetted in any way and in all likelihood may pass on the property, but the net effect is still significant. In other words, it comes down to efficiency. Even though most bulk home viewing is done via the Internet these days, open houses still serve their own unique purpose. For one, they help the agent determine the overall interest of the market. Though the agent on the seller’s side may derive the most tangible benefit here – at least, in terms of how to get the job done – the significance for the seller cannot be understated. It’s important to remember that while not all buyers may be serious or qualified, sales don’t just magically occur in a vacuum nor do buyers materialize out of thin air. Finding a buyer and eventually closing a sale is often a gradual process, and though an open house probably won’t lead to an offer the next day, it may nonetheless be an important step in a potential buyer’s decision to purchase the home.
Most of the time, information regarding open houses is geared towards sellers since they have the most at stake and assume most of the burden. Buyers, though, can derive a considerable benefit from open houses as well, albeit for entirely different reasons. This is because while open houses are a matter of convenience for sellers, they’re often a matter of expediency and networking for buyers. Simply put, buying a home for most people is a bit more involved than either finding a listing or an agent or even purchasing it outright. Smart buyers take as much time as they can afford, whether that means finding the right agent or the right property, and an open house can actually help them do both. If you’re a buyer and begin to visit several homes in the area, you’re effectively putting yourself on the market as a buyer and realtors are sure to notice. This may help you get the right agent who recognizes that you’re pursuing a purchase in earnest and is willing to help you, especially if it means they can interest you in one of their clients’ homes and avoid splitting a commission. While it’s easier to poke around on the web initially, it’s best to hit the streets and take in a few open houses because you’re bound to find an agent who is a better fit for you even if you don’t like the homes you’re viewing, and finding a good agent who has an incentive to sell a property you might like is the first step towards more intimate, private viewings of these properties. In other words, attending open houses as a buyer sends the message that you’re serious.
For sellers, the benefits and burdens of holding an open house are quite different. Again, in an era in which people can virtually view homes without leaving their own it may seem as though open houses are unnecessary, but they still serve a purpose. The most obvious benefit is convenience, because it makes a lot more sense to accommodate the casual lookers and tire-kickers all in one day than it does to clear out of your home several times a week for potential buyers who may not even be all that interested to begin with. Open houses also give your agent a good feel for the presentation of the house and the feasibility of your asking price. In other words, think of the open house as a filtering mechanism on one hand and a trial run on the other. As we talked about earlier, since buyers need to become educated about the market, the types of homes available in their area, as well as what to expect in their price range, open houses give them a relaxed setting in which they can deepen their education about the local market in order to make a more informed decision. A buyer may use an open house as a first showing of the property, and as a seller you can make a much better impression by taking some of the pressure off yourself and the buyer with this sort of environment.
An open house is almost certainly not going to lead to a sale immediately, but they can give additional exposure to the seller while allowing buyers to get their foot in the door of the local market. While you shouldn’t take an agent’s word that you must either hold or attend an open house, consider the benefits not only to yourself as a buyer or seller but also those that apply to the agent, as the benefits conferred to them may very well work to your advantage either way.
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– Get It Right Solutions