Does it Make Sense for Everyone to Host an Open House?
Hosting an open house is an efficient way of showing your home for sale. Rather than hosting individual showings, an open house allows your real estate agent or lawyer to host everyone at once. Doing it this way eliminates schedule conflicts and you don’t have to constantly leave the house multiple times for each individual viewing.
Open houses sound like the perfect solution, but they’re not always effective. While open houses attract plenty of people,only 5% of people purchase a home through an open house. With a 5% chance (or less) of selling your home, you may want to reconsider hosting an open house unless the following situations apply:
1. You’re a real estate investor
As strange as it may sound, hosting an open house benefits real estate agents more than home sellers.
The idea of attracting a large number of prospective buyers sounds like a dream, but the truth is that very few people will be qualified buyers and as stated above, only 5% of open houses result in a sale.
When you’re a real estate agent, although there will be few qualified buyers, you can still network with buyers. Perhaps they’re not interested in that particular property, but you can connect with them to show your other properties on another day. If they’re not ready to buy, give them your card and ask them to call you when they get pre-approved for a loan or are closer to being ready to buy.
2. The home isn’t your only property for sale
Like real estate agents, an open house could benefit you if you have other properties for sale (even if you’re not a real estate investor) relates the Law Office of Matthew L. Sharp. The main benefit is that you can promote your other properties to potential buyers.
3. You enjoy social gatherings
An open house might not be the best way to find a buyer, but if you enjoy social gatherings, you might have some fun with an open house. If you need to sell your home and you’re due for some social interaction, why not host an open house? At best, you’ll sell your home. At worst, you’ll have fun meeting new people and chasing away nosy neighbors.
4. An open house is a fun way to practice your sales skills
Whether you sell your home or not, every person you meet during an open house is an opportunity to practice your sales skills. Approach every person professionally and practice building rapport, small talk, getting to know their interests and goals, and see where it takes you. Notice where you get stuck and consider it a learning opportunity.
5. Your real estate agent recommends an open house
According to data obtained by HomeLight, 63% of real estate agents say they don’t always recommend hosting an open house. The same survey data revealed that the majority of real estate agents think open houses aren’t very effective. However, there are times when an open house might be useful to a buyer.
When a home is unique and close to a populated area, an open house can attract the right people. For example, if your home is a waterfront property, that’s a specific type of property in limited supply. Waterfront properties are likely to attract serious buyers who know exactly what they want.
When a real estate agent recommends hosting an open house, it’s worth considering. Real estate agents know the market better than anyone, and if they think it’s worth hosting, it doesn’t hurt. However, be aware that a real estate agent might only recommend an open house for their own benefit.
6. You want a clean house, fast
Your real estate agent might not sell your home during an open house, but you’ll benefit from the prep work that goes into hosting an open house. For example, your agent will get your house clean enough to look like a showroom with sparkly windows and absolutely no clutter in sight. If you don’t currently live in the home, they’ll stage it with furniture designed to appeal to buyers.
Getting your home prepped for an open house means you can take beautiful photographs for your listings. Having your house deep cleaned and decluttered will also benefit private showings.
In addition to cleaning up the inside of your home, your agent will arrange for landscaping and yardwork to ensure the exterior of your home looks great.
Trust your real estate agent
Whether your real estate agent suggests hosting an open house or not, trust their advice. Even if their desire to network is the only reason they suggest an open house, go with it. You’ll end up with a clean yard and house for the buyers who schedule private showings.