Open Houses: Their Pros & Cons

Posted by Steph Kaye on Friday, May 6th, 2016 at 11:42am.

We are entering peek open house season during these warmer Spring months.  It is not uncommon to see multiple signs on the weekends pointing to various neighborhoods and streets flooded with open houses.  It is every realtor's dream that crowds of people invade these open houses, however this concept can be a scary prospect for home sellers and it is important to weigh the pros and cons very carefully before embarking uponn this particular selling strategy. 

While fear should never be a determining factor for any decision and the goal is not to scare you, here are some important facts to consider in determining whether or not an open house is a good way to attract prospective buyers.  

CONS

1. - CRIMINAL ACTIVITY.  Open homes provide easy access for lazy criminals who are hoping for a quick opportunity to swipe whatever they can fit into their pockets.  It is always wise to take visitors through the house for a personal tour in order to best monitor activities.  

2. - VICTIMIZATION.  Unfortuantely, it is becoming more and more common for predators to use open houses as a means of acessing their next victim.  In the event that you plan to hold an open house independtly of a professional, experienced real estate agent, it would be wise not to do so alone.  Make sure you have at least one other person with you in the home at all times.  You can also install the Circle of Six app on  your Iphone or Android.  This is a great program for sounding the alarm when you feel you are in danger as you will be able to alert six people who are geographically closest to you that you need help.  You should always call 9-1-1 if you are in eminent danger.

3. - SLIM CHANCE OF SALE.  The actually percentage of homes sold as a result of holding open houses is less than 2-3%.  The question as to how homes sell without open houses is a common one.  Private showings are a must and homes are sold as a result of buyers contacting their realtors in order to set up appointemnts to privately tour a home.  Crowds drawn to open houses are most  likely full of curious browsers who have no intention of buying.  

4. - UNQUALIFIED BUYERS.  Many times, unqualified buyers shop the open house realm.  This means you are likely to have people browsing through your home who are not qualified to make such a purchase.  

PROS

1. - ATTRACT ROOKIE BUYERS.  Some home buyers do not know how to adequatley begin the home buying process.  You might very well attract such a buyer in holding an open house. 

2. - EXPOSURE.  It is a mistake to choose a realtor soley on the fact that they are committed to holding open houses every weekend.  It is important that your realtor knows how to maximize exposure as well as utilize a strong marketing system.  Open houses can provide that much needed exposure and street signs, newspaper ads, and even social  media promotions can lead to additional exposure.   

3. - BUYERS ARE NOT PRESSURED.  Open houses tend to be extremely laid back, easy going events.  Most realtors allow buyers to puruse the home without pressure, thus allowing the option for a buyer to view homes in a more considerate mode.  This gives them time to analyze and truly picture themselves living in a home.  

 IN CLOSING

Keep in mind that today's buyers tend to be quite savvy and will generally perform their own research prior to visiting a particular home.  

Realtors rely on multiple methods that do not necessarily require them to resort to open houses as a means of selling a home: skilled photography, strong online presence, search engine optimization, strong social media presence (Facebook, Twitter, Google+, Pinterest, etc.), strong marketing materials and strategies, and excellent communication skills.

If you'd like to learn more, please don't hesitate to message Lang Premier Properties online or call us at 1-855-526-4466.

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