Open House Pros and Cons: What You Need to Know
Open houses are a very debatable subject in the real estate world. For some sellers, the idea of an open house is a must, and for other sellers, it seems 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.
When selling your home, how do you know if you should have an open house?
The best thing to do is to evaluate your unique situation and be aware of the pros and cons. In this guide, we will give you everything you need to know to decide if your house could benefit from an open house, and the positive and negative aspects of hosting one.
Should I Have An Open House?
There are a few situations that make your house the perfect candidate for an open house.
The first one is if your house is very unique and stands out in the market. Second, if your house is in a popular, crowded area with high demand.
More people will come to your open house if you are unique and in location with high demand. In this situation, hosting an open house will create highly competitive offers.
If your house is in an area with many similar houses on the market, then an open house is not recommended.
Let’s go over the positive impacts of having an open house!
Open House Pros
1. You Can Attract Buyers That You Wouldn’t Usually Have
A potential buyer could see your open house sign while they are driving and decide to stop by. This is appealing to buyers who are more casual. An open house can attract curious buyers who are new to the process and do not know where to start.
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, Zillow, Trulia, 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.
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 buy 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.
Want More Real Estate Tips?
We hope this guide gave you more insights and will aid you in your decision to have an open house. If you would like to learn more about the home selling process, including advice from experienced professionals, check us out at New Venture Escrow!
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