Pro's and Con's of Open Houses
Should I host an open house for my client? This is a question every real estate broker comes to ask at some point in their career. However, this question seems to have no clear answer. The topic of open houses in the real estate industry is an issue for both sellers and real estate agents. The real part of the matter is that while a good number of home sellers rely on open houses to get the attention of potential buyers faster, others are highly disturbed by the idea of an open house. I’ll continue below with some pros and cons of an open house when selling a real estate property.
Pros of Holding an Open House:
Open to all: Open houses have the reputation of attracting more than just potential buyers. They as well attract brokers with the aim of teaming up on the sale and help by providing tips on getting the home sell fast. For a start, you need to understand the three people you sell your house to. First, it is the broker community, the buyer community comes second and finally the bank. Being able to sell your home to all three parties mean a successful sale on your home and this can be easily achieved by an open home.
Attract first time buyers: The home buying process is one of the toughest parts of dealing in real estate and can only be achieved with experience. First time home buyers generally require a significant amount of advice throughout the process and some don’t even have an idea on how to start. Deciding to hold an open house could be of help to buyers in such conditions. A home buyer may see a sign of an open house on the street and decide to stop and get more information.
Additional Exposure: A key role of a real estate agent is to ensure their client’s property’s are getting enough exposure. This can be achieved by holding an open house. Open houses provide an extra exposure to promotional advertisements such as internet ads, newspaper ads, and street signs.
Cons of Holding an Open House:
Security Issues: Open houses come with a lot of insecurity. Burglary and vandalism are two key potential results after an open house and are seen as an unfortunate reality. The chances of occurrence for these two events would increase if it is a vacant home. Open houses give burglars the chance to explore homes with little or no supervision and it gives them time to plan their activities.
Low Possibility of Sale: The question is, are open houses a must to sell a home? The answer to this is no! From a total sold properties in a particular area, only 2-3% was actually sold as a result of open houses. You can stay out of open houses and try out the option of private showings. Most homes get sold when the buyer hires a realtor, request an appointment, and schedule a private tour on your home.
Nosy Neighbors: Open houses are a call to intrusive neighbors who would just want to see your home and compare to theirs. Your home will be visited by some individuals who have no aim of purchasing your home.