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Advantges and Disadvantages of an Open House

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Getting Started

In the real estate business, there are numerous ways for realtors to handle, transact and complete their house sales. One of the most efficient and proven ways to boost your closing rates is hosting open houses. 

An open house compares to a rock concert where people can collectively view all the beautiful qualities available within a home or condo. Visiting an open house is also like attending a live social gathering where you get to meet with other agents, friends, and, yes, buyers. When used correctly, open houses can help you save money as they enable you to show your home to many people at once.

Although many real estate agents might not truly appreciate the potential that this concept entails, open houses are the best way to generate more leads.

Purpose of an Open House 

Before hosting an open house, there are factors that you should consider first. 

Why should you host an open house? Will you close the sale on that house you have been trying to sell for years if you put up an open house? These are just but a few questions you should ask yourself if you are to put up your home for sale. 

Let’s take a look at the importance of hosting an open house for a soon-to-be-sold home;

  • Hosting an open house allows buyers to experience the home for themselves, potentially shortening its time on the market.
  • An open house is the best way to display your home’s charm, amenities, and prime location.
  • Open houses provide realtors the opportunity to meet future clients face-to-face and foster relationships with their peers.

Advertising an Open House 

Homeowners and real estate agents alike go to great lengths to advertise an open house. Unlike most advertising methods, when selling in real estate, the potential buyer goes to the house itself and receives an extensive tour. It is through this that realtors can close deals and get more listings. 

Simple as it may sound, hosting an open house requires meticulous planning and preparation. It is one thing to prepare your house for visitors and ensure they are comfortable; getting people to show up to the open house itself is an uphill task. 

The following are some of the ways through which you can attract clients to your open house;

  • Social media advertising such as Facebook Ads, Instagram Ads, Twitter Ads or creating pages if you are an agent with multiple clients and locations.
  • Hosting an open house for brokers
  • Create a YouTube channel to share and showcase your house by giving a guided walkthrough 
  • Referrals from neighbors, friends, colleagues
  • Advertisement through print such as newspapers, posters, banners, flyers 
  • Use of colorful advertising materials such as balloons and drones
  • Putting up signage at strategic locations

Careful implementation of these advertisement practices will result in a good turnout at your open house day. 

How to Prepare for an Open House

Proper organization is key when hosting an open house. Although it is your home, keep in mind that it is also a business setting for buyers ready to look and offer for your property. Naturally, you’d want to make it presentable, which is the key to working through a successful open house.

Here is a guideline with clearly defined steps on how to prepare for an open house;

  • Make a list of all the essentials present in the house. This will help you sort items to go and those to leave intact during the open house.
  • Depersonalize every room of the house and remove most of your personal belongings. open houses that appear stuffy, unkempt, or disorganized do not often convert sales.
  • Make necessary repairs and renovations to improve the appearance of the house and avoid additional costs when selling the home.
  • Rearrange most of the furniture to make the house appear welcoming and spacious.
  • Ensure the house is generally clean with a strong attention towards essential rooms such as the bathroom. Well-scrubbed and maintained should be the theme.

Additionally, when you are putting up your house for sale, you should also get prepared emotionally to let go of it. It is normal for homeowners to feel attached to their homes owing to the amount of time and work they put into building it. If you wish to sell, let go and prepare yourself for an offer!

Expected Open House Guests

While preparing for an open house, you should keep in mind the type of clients you want to attract. Basically, as a homeowner or agent in charge, you should prepare for anything during the open house because different people will each make their way in and out of the premises all to their satisfaction; after all, it is an open house. 

So, who should you expect when hosting an open house?

  1. First Time Home Buyers 

First-time home buyers are arguably the most common at open houses. It is prudent for most first-time House buyers to sample various neighborhoods and estates to satisfactorily come up with an idea of the kind of house they would need.

While most first-time homebuyers may not acquire a house as soon as they see and like the first ones, they are potential buyers who are pivotal in the real estate market. 

  1. Other Real Estate Agents

Open houses are opportunistic venues through which other agents can meet with each other. Depending on the situation, be it an agent who did not get the listing or something, realtors can show up to check out the house themselves and take note of the criteria used. 

Other agents also use this opportunity as a way to introduce themselves to various clients who could turn into future homebuyers and increase their client base. After all, the entirety of the business is solely people-based.

  1. Locals and Neighbors 

Most people who go to open houses are the ones that live nearby.  While most may come out of curiosity, some neighbors might buy the house if they like what they see or recommend the same place to colleagues, family, and friends. Agents also appreciate neighbors showing up for open houses since they also get a chance to ask them if they could sell their own homes or share their experience of living in the neighborhood. 

  1. Idlers 

It is not uncommon for idlers and passersby to show up during an open house. These idlers, popularly known as lookie-loos, are infamous for taking most of their time visiting other people’s homes out of curiosity. This is most rampant during Sundays. 

  1. Thieves 

Open houses are often hunting grounds for thieves and burglars. Although most people, including your agent and you, will be present, you cannot be in all places at once to keep an eye on things. Therefore, it is paramount that you keep all valuables away if you are to open your home to the public.

Precautionary measures

You should keep all personal documents like paperwork and identification information tucked away in a safe location. Do not overlook these tiny details like Social Security Number information, personal ID, house keys tend to wander off without a trace. 

Are Open House Visitors Active Buyers?

A large percentage of the number of buyers shopping for a home goes through real estate agents who give them a private tour of the available houses for sale. This may appear as limiting in hosting an open house, but it’s not the case. 

Therefore, every visitor showing up at an open house is a potential buyer and should get treated as much. According to the National Association of Realtors, open houses are a lucrative and fast way to close house sales.

Pros and Cons of Hosting an Open House

Selling a house is rewarding for people who work in the real estate business. You can choose to go it alone or hire an agent. If you choose the latter, interview multiple listing agents to find the right professional. Each agent should have a deep understanding of your wants and needs, as well as the market conditions in your area. 

In an open house, the seller opens doors to his or her home for potential customers to view and negotiate. Given the nature of the marketing event, serious buyers, curious neighbors, real estate agents, and people just snooping around are all welcome. 

Prepare to answer questions on your home and the location. Since you are personally doing the tours, focus on pointing out the strengths and be truthful. 

The decision to hold an open house or private tour is solely yours. Hence, before you decide on the best method to go with, you need to be aware of the pros and cons of going open house. 

  • Pros of Open House

Make Potential Buyers Feel Welcome and Free

Potential buyers get the chance to tour different rooms in the house in groups or as individuals. Here they get to view every aspect of the house freely without a realtor on their nerves. They get to contemplate and absorb what they see. While at it, you get to deliver your pitch with ease.

Attract Highly Competitive Bids

Think of an open house like an auction, where you see many buyers compete to purchase one product. The buyer with the highest offer gets to keep the product. Buyers have to prepare with the best negotiation skills and deep pockets. A good home is a sentimental entity. Often, homeowners will go to great heights to acquire their home of choice. As the realtor, this is your chance to strike the best deal, the best offer.

Allow Home Sellers to Increase Engagement with Customers

Not everyone in attendance during an open house gets to buy the said home. However, everybody in attendance is a potential customer. Realtors have the best moment to engage with future clients, build trust and new networks.

  • Cons of Open House

Safety Concerns

The number of homes raided days after an open house is quite alarming. The best solution is to keep your most valuable items off clients’ eyes. Of course, most people will attend the event with good intentions. However, avoid tempting the clients.

You Allow Non-Customers to Your Home

The truth is that not everyone attending an open house can afford your home. Others will not like it even if they can afford it or love the neighborhood. Most sales happen in a private encounter with a potential customer. 

Stressful

Everything, every item, has to be at its place when hosting an open house. Otherwise, things might not go as planned. As a seller, you have to put out word first, schedule the day of the event and prepare with answers that may arise during the event.

The house has to be spotlessly clean. You should identify and correct everything that might affect the bottom line. 

Essential Home Selling Tips

Selling a house is not be as tedious as it sounds. With the right tools and practical marketing abilities, you can sell just about anything. The following are a few essential tips you should have at your disposal if you are to sell that house;

  • Repainting – a well-painted house will appear brighter and more attractive, essentially welcoming potential buyers.
  • Rearrange, clean, and organize
  • Ensure there is proper lighting in all rooms of the house. All doors, windows, cabinets, and drawers should be fully functional, hinged, and accessible.
  • Do not block off a room for any reason whatsoever. If, for some reason, you have to, hold off the open house show until you are comfortable with showing visitors all rooms.
  • Ensure it is always ready to sell – inconvenient as it may sound, you may not necessarily make an immediate sale on the house, but you should prepare for any eventuality. However, you should maintain the house in a habitable condition until it gets sold.

Conclusion 

While hosting an open house does not entirely guarantee a sale, it has proven to be more effective, with studies showing that homes put up for open houses sell for upwards of $9,000. Additionally, homes displayed in open houses sell faster. This is true to the saying; seeing is believing. 

There are only but a handful of factors to consider when contemplating an open house. If you are unsure whether or not you should hold an open house, discuss it with your real estate agent before making a decision. 

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  • Sukh Brar Real Estate Group

    Sukh Brar Real Estate Group
    (604) 648-7800
    sales@sukhbrar.ca
    Top 1% Realtor according to the FVREB 2014-2019