If you are putting up your house for sale, should you have an open house? Hosting an open house when selling a home is a tried-and-true real estate approach. Open houses have been a tradition for many years. Their viability as a marketing tool, however, has changed since the arrival of the internet. There are many downsides also to an open house. Open houses can be a real hassle for the homeowner. Although an open house will undoubtedly get people in the home, a homeowner should consider if it is really necessary and who exactly is coming through the door! A real estate agent will also explain the pros and cons of an open house to their client.
Do you need an open house to sell your home? Below is a list of pros and cons to help you make a choice:
Pros of an open house:
1. Tons of Exposure
Your home can get a lot of exposure through an open house. Your real estate agent can advertise the open house on real estate websites, on social media, in industry networks, and perhaps even in the newspaper. Thus providing more exposure to your listing.
2. An open house is open to all
An open house is open to all. A lot of potential home buyers do not know where to start. A potential positive of holding open houses is the likelihood of attracting potential homebuyers who don’t know where to start.
3. First-hand experience
The internet may be the fastest way to find a home, but nothing overcomes walking through a house and seeing it first-hand. Besides, a considerable number of people don’t make appointments until they are really ready to buy a home. They enjoy the benefit of just attending an open house. If they happen to become serious they can always reach out to a local agent.
4. A low-pressure environment for buyers
Open houses also provide a low-pressure environment for buyers. Buyers can feel comfortable coming in to view the home without a buyer’s agent watching them for signs of interest. Open houses, in general, are very laid back events.
Cons of an open house
1. Safety and security concerns
Open houses offer criminals a perfect opportunity to explore your home and identify all its weak points. It is not common for personal items to go missing during an open house, but there is some concern about extending an open invitation for strangers to stroll through your house. Your listing agent might not be able to keep eyes on all visitors at all times. Especially if he or she is busy discussing the house in detail with a potential buyer.
2. Just looking around with no intentions of buying
Open houses are known to attract inquisitive neighbors who basically want to see your house and compare it to their own. Some people also visit open houses with no intention of purchasing the home. So, while holding an open house will increase your exposure, it won’t necessarily increase your chances of selling the house.
3. Unqualified buyers
One of the first steps in the home buying process is obtaining a mortgage pre-approval. One drawback to having open houses is the possibility of unqualified buyers attending the open house.
4. Low chances of sale:
The percentage of homes that sell as a result of a real estate open house is quite small. Private viewings of your home have better chances of earning you a buyer than open houses. Any serious buyer will schedule a showing to view a property they like. With scheduled showings, you have financially vetted buyers coming through your home.
When thinking about having an open house you really need to weigh the advantages against the disadvantages. Discuss with your real estate agent whether you really need to host an open house or not. Collect all the information you can on open houses in your specific market and then weigh the pros and cons to make the best decision.