“Should I host an open house for my client?” is a question that nearly every real estate broker asks at some point in their career. However, there seems to be no clear answer to this question. The issue of open houses is a controversial topic in the real estate industry-both by homeowners and real estate agents. The truth of the matter is that while some home sellers will emphasize the fact that having an open house will help sell their properties faster, others will want to hear nothing about the whole issue of open houses. So, what are some of the pros and cons of open houses? Read on to find out.
Pros of Open Houses
One of the most significant advantages of open houses is that they allow maximum exposure of the home for sale. One of the most critical things for any real estate broker selling a home is ensuring that the house receives a ton of exposure. In fact, without maximum exposure, and exemplary marketing strategies, chances of selling the home are significantly lowered. Whether it’s posting the open house on various social media outlets or street signs, the idea of having an open house will automatically lead to additional exposure.
An open house will also offer you a chance to attract potential homebuyers who don’t know how to approach the home buying process. Remember the fact that purchasing a home isn’t a process that most people are conversant with, specifically first-time homebuyers. Potential homebuyers usually need tips, advice, and proper guidance through the entire process. A potential positive of holding open houses is the likelihood of attracting potential home buyers who don’t know where to start. He/she may see your sign in the street when driving and stop to obtain more information.
Open houses also eliminate any pressure that potential homebuyers may feel. A significant number of real estate agents who prefer open houses will allow potential buyers to tour the home with no pressure at all. Real estate brokers will give buyers the option to view the home without the pressure of the home seller. They understand the fact that some potential buyers like to analyze the home without time restrictions or undue pressure before they decide on what to do.
Cons of Open Houses
Unfortunately, holding a real estate open house also comes with numerous disadvantages. For instance, holding an open house, in fact, lowers chances of selling the home. The percentage of homes that sell as a result of a real estate open house is quite small. The crowd that open houses attract will mostly comprise of jokers and people who aren’t willing to purchase the home. A majority of homes are usually sold when a buyer has a real estate broker, requests an official appointment, and tours the home privately.
Security concerns are another drawback of open houses. Chances of break-ins and vandalization tend to increase when you allow crowds into your home. Open houses offer criminals a perfect opportunity to explore your home and identify all its weak points. It also provides them with a chance to plan out their crime and execute it at the most opportune time.
Open houses also attract lots of unqualified buyers. One of the initial steps in the home buying process is acquiring a mortgage pre-approval. However, most of the people who attend open houses sessions are not yet pre-approved, and chances are, they can’t afford to buy the home. Keep in mind that it is almost impossible to scrutinize open house attendees to determine whether they are already qualified to purchase your home.