Open Houses – Pros and Cons

Open Houses – Pros and Cons

The time-honored idea of an open house as a key sales strategy is losing favor fast. In fact many real estate agents refuse to hold open houses when they sell real estate. They tell the seller that other agents only hold them because it can be a good way to market their business, as opposed to selling the house. Or that most people only use the internet now. Or that you only get nosy neighbors and lookey-loos.

While this can hold true, it shouldn't deter a seller from holding their house open. The reality is it only takes one buyer to sell a home and you never know how they will first see it. Pre-marketing and timing of the open house is what could make it a success or not.

Many buyers who visit open houses do so to compare what is on the market in certain areas and price brackets. If your home is priced well and shows well, it will certainly stand out among other homes they are seeing. Holding an open house immediately after listing the home or having a "coming soon" open house, is a good way to find a buyer that is seriously in the market.

According to the National Association of Realtors (NAR), 20 years ago 41 percent of people trying to sell real estate (specifically houses) relied on estate agents having open houses. By the year 2000 this percentage had dropped to 28 percent. Generally though real estate agents no longer consider open houses to be a necessity.

In the past decade, the value of Internet marketing has outpaced the value of open houses; 20 years ago only two percent of people in the market to purchase used online options. By last year, this percentage had increased remarkably to over 90% percent. This doesn't mean that open houses don't work. In fact, it just makes them much easier to market.

One thing open houses do facilitate is opinion. Even if visitors are “tire kickers” and not even in the market to buy, agents can get a gauge of what they think of the house. This often gives the seller the opportunity to rectify problem areas they may not have previously considered necessary or possibly adjust the price to meet market expectations.

The most common objection to holding open houses relates to security and privacy issues. If you do decide to hold an open house, secure all valuables (preferably remove them from the premises), pack away all family photos, and hide extra keys that are hanging around. After all an agent can't be in every room with every person, so precautions should be taken. Make sure your agent asks people to sign in as an extra precaution.

In addition to this, not all houses are good candidates for open houses. For instance, those in remote locations are unlikely to get enough visitors to warrant an agent sitting there all day. Very rundown or neglected homes are also not good for open houses. In this instance private viewing is recommended, where the estate agent can pay full attention to the potential buyer and do a more focused sales pitch.

Working with a professional agent, you can weigh all the pros and cons and decide if it's right for you. if you have any questions about holding an open house, Contact Us at Jim Cleveland Homes Keller Williams Cary NC.