It’s time to sell your house. Better get started with your
plans to hold an open house to attract buyers.
Right?
An open house will guarantee that your house gets the best
exposure to the largest pool of interested buyers…
Or will it?
Actually, this isn’t always the case! Open houses are not
the best in every case. This is why some sellers are beginning to shy away from
holding them in today’s market.
So why, then, will most real estate agents push for an open
house?
There are benefits for agents in holding an open house. Real
estate agents build their own potential network of clients through open houses.
But let’s be very clear about something: most of the benefit runs the way of
the agent, and NOT, you, the seller.
An open house is not a key component of a successful sale.
The key components are the right real estate agent, the correct price point,
and an excellent marketing campaign.
Let’s face it: scheduling an open house can be a proper
headache in your busy lifestyle, or ruin your relaxing family Sunday afternoon
by preparing your home for sale!
Here is my expose on open houses: six truths that may change
your mind about open houses. You’ll agree you should think twice before running
your next open house and inviting every Tom, Dick, and Harry!
Truth #1 – You don’t need an open house for a successful
sale
Most agents will try to set up an open house, simply from
habit.
This is the set way in which real estate sales have been
running since before there was a World Wide Web.
“But hasn’t it always been done this way?!”
Well, advancing technology has revolutionized all areas of
industry and commerce, and real estate is no exception. Top real estate agents
have adjusted to the times and rightly asked whether there is even a need for
open houses.
Prospective buyers now hit the internet first when embarking
on their home-buying journey. A great online listing should be part of your
marketing strategy – far more than an open house!
Interested buyers who are moving toward making an offer will
get the agent’s details from the listing and set up a viewing as soon as
possible, regardless whether there will be an open house next weekend!
This framework actually weeds out those who aren’t
interested in buying your home.
Rather than focusing on sorting out an open house, connect
with a competent real estate agent with an expansive network of buyers and
sellers. Invest time and effort into developing a solid marketing campaign with
them.
Truth #2 – Most of those attending the open house aren’t
qualified buyers
It is true that some who come along to your open house may
be looking to buy. But in my experience, there are quite a few who show up who
have no interest in making an offer.
Some will be “just looking”. Some will be nosy neighbors
looking to check your place out. I’ve had it many times where couples confide
in me that they enjoy going to open houses on Sundays as a pastime or hobby!
Beats staying home and watching Netflix, I guess?
In short, the open house mentality encourages many to pitch
up on the day itself, who aren’t prepared for what they’re about to see and
highly likely will have no intention of buying.
An agent worth their salt will instead prioritize private
viewings with pre-approved buyers who are in the position to make an offer.
Truth #3 – You can expect those inquisitive community
members to pop in
The myth is that every open house leads to a long queue of
genuine, interested, potential customers.
Wouldn’t that be great?!
The reality is that an open house is an opportunity for
window shoppers to come off the street to have a look.
Why do nosy neighbors make use of an open house? They may
have always had an interest in seeing the setup at your house. It may be to
compare their space to yours. Some enjoy seeing similar decor and furniture
arrangements in their area to get creative ideas for their own space. Some want
to compare market values. And some are only taking license to be nosy.
If this doesn’t appeal to you, as the home seller, the
solution is rather simple: don’t run another open house.
Truth #4 – Open houses have a poor conversion rate
When you run an open house, you are inviting the world in to
see your house. This can include a small percentage of potential buyers.
However, in most cases, you are also inviting in a crop of people not interested
in buying your home.
This means that open houses are more often more trouble than
they are worth! That is, for you, as the home seller, of course. Meanwhile,
your agent is expanding his client network on your time in your open house…
The true professional real estate agent will be better off
spending their time and effort on attracting true potential buyers.
Truth #5 – Open houses are not good for your peace of mind
Unfortunately, it would be naive to think that everyone who
walks into a show house has the best intentions. We don’t have to spend time
unpacking current crime statistics to drive the point.
We have an opportunity here to expose the drawbacks of open
houses:
Incidents of theft do occur on open houses. Worse still, in
certain cases, there have been burglaries following the open house. Criminals
attend the open house, identifying weaknesses which they can exploit at a later
stage. Some even sabotage locks on doors and windows during the open house.
Is it worth the risk, when you consider what valuables and
heirlooms you have on your property?
Truth #6 – You don’t have to agree to run an open house
Even if your agent is pushing you into holding an open
house, you can just say “no”.
One reason some agents still endorse open houses is that it
looks like they are doing good work when they take up their (and your) whole
Sunday for an open house!
Rather than judging an agent by how busy they look, base it
on the results they get: how long does it usually take for them to sell a
house? Do they usually sell houses close to the sellers’ asking prices? Do they
have good references?
Bottom line: a good agent will be open to a discussion about
whether to hold an open house. While it might still be advantageous to hold
them in certain rare situations (such as new construction), bearing in mind the
pointers in this article, listen to what your agent has to say and make your
own informed decision.
Good luck!
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