When your listing agents host an open house, they show a house during a prescheduled time when the property can be offered to potential buyers and the public. It is one of the most effective tools for selling a home.
Holding an open house is a successful way to create interest and demand for any property. An open house can be in-person or virtually, or both. This blog will look at how an open house works and how wildly successful they have been.
An “Open House” in Real Estate Terms
Potential buyers have a scheduled time to view the property for sale. A timeframe gives the potential homeowner the chance to walk through the home either on their own or by having the agent give them a guided tour. A tour allows aspiring buyers to look at the property in a more relaxed way than one-on-one showings.
What Happens at the Event?
A realtor hosts an opportunity for people to walk through the home on their own or a guided tour by the agent. The real estate agent hosts, schedules, and advertises open houses. This is a good way for the agent to generate interest in the property.
When there is a private showing, the agent will schedule the showing with an interested buyer, but an open house allows the public to come by and look through a place. Most of the time, anyone can go in without an appointment and will be asked to sign a guest book with contact information.
Will it Sell my Home?
In some regions of the United States, open houses tend to spend less time on the market, and sell for more money, a new study from the real estate brokerage Redfin finds. An open house offers benefits, such as gaining the interest of potential buyers. An open house alone will probably not sell the home; however, a potential home buyer can take a good long look at the significant purchase they are about to make. With more potential buyers walking through the property, the more likely you will be to receive an offer.
Several ways an open house can benefit the selling of your home are discussed next.
More Public Awareness
Advertising consists of internet ads, roadside signs, and posted fliers. Advertising by the listing agent is done in advance of the event. The listing agent will also contact other real estate agents to alert them of the property and find new prospective buyers.
The more people coming to the open house, the greater the chances of finding a buyer. Serious buyers may schedule a one-on-one showing at a later time.
An open house gives the buyer a better idea of what it is like in the home, rather than relying on virtual images.
Potential Buyers are More Relaxed
Since there are no appointments necessary for an open house, it is a more relaxed atmosphere. In this way, buyers can gauge their interest if they are on the fence.
Generating New Clients
A benefit for real estate agents is that they can meet new people from the general public, which may generate more business. Also, open houses offer opportunities for real estate agents to meet other professionals and opportunities for sales.
Open House Drawbacks
There are a few disadvantages to having an open house.
Attendees May Not Be Qualified Buyers
Those who attend an open house are not necessarily pre-approved or pre-qualified for a mortgage or are even serious about purchasing the home. They could be nosy neighbors or others looking for ideas to improve their homes.
It Takes Hard Work
There are things you need to do to prepare your home for an open house. First, it needs to be staged and the removal of personal belongings. Plans for pets or family members must be made to vacate the home during the event hours.
Again, the event is open to the public, bringing safety concerns. There is the potential for things to be stolen when strangers enter your home. With safety in mind, any valuable items should be removed beforehand.
The Bottom Line: Open Houses Can Help A Home Sell
Traditional open houses play an important role in real estate by helping to bring in more buyers. More buyers can see your property when you have a formal open house. If security is a concern, a virtual open house is also a possibility.
If you’re looking to find out more about selling or buying your home, please reach out to the Katie McNeill Team today.