Seller Tip: Pros and Cons of Open Houses

To have or not to have an Open House???

This is a very important question and before you jump in and say “ YES YES YES”!!!!, you should know the pros and cons of that decision.

Open Houses can be extremely effective in certain cases. However, the actual percentage of sales that are procured from Open Houses are MUCH lower than you might think.

Most buyers have a buyer’s agent and will more likely schedule and prefer a private showing. However, first time home buyers that are just getting their feet wet may not be at that stage yet.

This is why I do have a price bracket rule of thumb for Open Houses. Typically, I will do an Open House for properties below $250,000. Above that price point, I have found that buyers prefer private showings and also have a realtor representing them who will schedule their showings etc.

Open Houses can be effective to accomplish the following:

  • Allow your listing agent to get new leads

  • Invite nosy neighbors to see your house who have always been dying to take a peek

  • Possibly have a first time home buyer who hasn’t chosen a buyers agent to see your home. They may or may not be pre-qualified yet

  • Have a neighbor compare their home to yours that will be selling in the near future .

  • Visitors that make a hobby of visiting Open Houses. I cannot tell you how many people I have met that say this to me. Totally fine and they aren’t doing anything wrong by doing this. It is just something to know as a homeowner that this may be one of your Open House guests.

  • Both the “ Nosy Neighbors” and the “ Open House Hobby Folks” may see your home and then immediately think of someone who might love it. In the end of the day, if there is a chance of having additional eyes and ears on your home to get the word out, that is a benefit.

Now, I don’t list all of the items above to be funny. They are all true and show why it is truly a “ Mixed Bag” of pros and cons. If you have the right agent marketing and promoting your home, you may not need to even have an Open House.

Other Options:

  • Virtual Open Houses

    • One of the good things that has come out of this COVID time span, it has been that our realtor community has had to sharpen our skills for online education and the ability to create virtual live and recorded tours of our properties. If the idea of having strangers coming through your home makes you uneasy, ask your realtor about hosting a virtual Open House on Facebook and online.

  • Private showings

    • 9 times out of 10, this is your best option. This way you know that the buyer is a REAL BUYER! If their realtor is an experienced agent, they also won’t take that buyer on appointments without first being pre-approved. Do you really want someone looking at your home that may not be able to actually buy it?

  • Brokers Open House

    • This is a great option if your property is at a higher price point . Your agent will have a Brokers Open House and ideally invite the realtors that they feel will have the highest likelihood of bringing a buyer. I typically do Brokers Opens by personal invitation. We have agents that are high volume sellers specific to the various towns in Berkshire County. These are the realtors that you would want touring your home.

As always, if you want to ask any questions or have thoughts about this post, just reach out to me anytime.

Tanya


”If opportunity doesn't knock, build a door. “

~Milton Berle