Most adults have probably heard of the term “open house!” But what does it truly mean? More importantly, does holding one help sell properties? Past buyers or sellers and current real estate agents will say open houses prove beneficial whether you sell or buy a property. Let’s learn more about it below:
What is an Open House?
What is an open house? Officially, the dictionary defines this as any home open for inspection and scrutiny by potential buyers or even tenants. Thus, you schedule an open house when the dwelling becomes free for viewing by any prospect. Typically, the owners vacate the said property so the broker can hold an open house.
Some say the terminology open house can also pertain to the property itself. It applies to real estate properties that are up for sale. They are conducted by developers of new communities or even by homeowners themselves. So, in essence, any of the following real estate properties can undergo an open house:
- Multifamily home
- Single-detached home
The Events That Transpire In An Actual Open House
The real estate market can be highly competitive whether you sell or buy a property. With so much competition, you must find ways to stand out. On top of that, the market is not liquid, and is packed with dissimilar products. So, here is why an open house works:
Allow People to See the Home’s Nuances
Because of the nature of the real estate market, it can be hard to sell properties. It is also tricky because each house is different, even if they are in the same street. Thus, most owners and realtors feel inclined to hold an open house since this allows potential buyers to enter the property to examine it. Then, they can walk through it at their own pace or with the guidance of realtors.
Entice Potential Buyers to Make an Offer
The primary objective of an open house is to entice the home buyers and pull them into making an offer. An open house is also beneficial for buyers because they personally see the layout of the house and get a feel of the property, including the surroundings.
Work Better Than a Private Appointment
This works so much better because an open house is usually a one-day affair. Hence, there is more time compared to a one-on-one appointment with a realtor. In addition, the private viewing sessions often end sooner because you work with the schedule of the realtor and homeowner.
Host a Weekend Activity
In general, realtors and sellers set up an open house on weekends. They advertise the open house on social media, use banners, send flyers, use standees, and other fanfare to promote the event. At the same time, buyers who are eager to buy a house and have been looking at the listing can see it in person.
During the open house, the owners of the property keep the property neat and clean. Some even opt for home staging to showcase the house in the best possible light. From decluttering to adding interior decors, everything is to ensure a quick sale. On top of that, owners and agents typically provide:
- Leaflets about the house
- Coffee or tea
- Finger food
The Benefits of an Open House Outweighs the Cons
Hosting an open house means honoring a real estate tradition when it comes to selling a property. However, some counter that technology has interfered with that. Today, people turn online for research, with less people attending open houses. Thus, when modern people see a house, they like online, they schedule an appointment instead. Here are some arguments against doing an open house:
- Hard Work: It takes a lot of effort to clean, make the house presentable, and conduct an open house.
- Vacate the Property: During the open house, the seller needs to vacate the property and leave it at the hands of their agent. You may need to arrange for pet care.
- Remove Personal Effects: Sellers must remove personal effects like photos and other personalized items throughout the house.
- Privacy Concerns: Some sellers worry about privacy invasion and theft concerns with strangers walking in their homes.
However, you can mitigate these issues with proper planning and the right logistics. Besides, conducting an open house outweighs the cons. An open house is a tradition, and old habits certainly do not readily die. Many people still opt for an open house even if they can have online listings. This is still viewed by many as a great marketing strategy for selling a home. Look at the following perks of an open house:
An open house offers an opportunity to attract potential buyers to check out the property. A well-executed open house will generate interest and excitement. This can potentially lead to an offer and sale. For best results, holding an open house on the first weekend after the property goes on sale is ideal.
Alerts the Realtor About Potential Issues
Even if the open house does not result in an offer, it is still beneficial. As guests walk through the property, they usually give comments about the home. This can alert the seller’s agent about the problems of the home through visitor feedback. These issues may prevent the home from selling. To illustrate, unattractive wallpaper can turn off, and an easy paint job can amplify the home’s selling potential and value.
An open house ensures you have many buyers checking out the property on the same day. Unfortunately, it can be quite cumbersome to make a private appointment. These personal viewing with potential buyers are inconvenient if you are a seller. It eats up your time and disrupts your schedule. Besides, if you decide to get your home staged by a designer for better results, doing an open house will cut down on costs significantly.
Encourages Healthy Buyer Competition
Most professional realtors will say that you can think of an open house as a public auction. During this event, there is a competitive atmosphere between buyers. Everyone knows anyone can make an offer at any time. Thus, an open house can lead to offers. And if you truly have luck on your side, you could deal with a bidding war between buyers and get the best-selling price.
Assures Less Pressure
The open house creates less pressure for both buyers and sellers. After all, this weekend event is not as formal as a private showing. It does not suddenly disrupt the sellers’ schedule because a specific day is set for the event. Moreover, potential buyers do not feel pressured to make an offer in an open house. It is a casual event where they can peek and walk in.
Offers More Time
Unlike a private showing that typically lasts 10 to 15 minutes, you can spend more time in an open house. Since the event usually lasts for long hours, potential buyers can take their time walking through the home. They can get a feel for things, experience the house, and imagine what it is like to live there. Buyers can visit in the morning, then come back again later in the day if you feel like it.
Works Like a Charm
Open houses benefit both buyers and sellers. According to the National Associate of Realtors, 48% of buyers mentioned using an open house to learn more information for their home search. That is a fairly big number to ignore. However, it is also beneficial for sellers because the chances to sell faster are greater. Remember, the longer your home spends time in the market, the harder it is to sell at the price you want. Besides, this also means spending more money and possibly putting plans on hold if the house does not sell quickly.
How to Host An Open House
For those who do not use a realtor and attempt to sell their houses solo, you can still host your own for-sale-by-owner open house. Here is what you can do to host a successful event:
Step 1: Choose a Good Date
Make sure the event does not occur on a holiday. You must also avoid having your open house coincide with a local civic event or a major sporting event. Make advertisement plans and begin doing it ten days before it occurs.
Step 2: Inform Your Neighbors
Notify your neighbors about your open house. This will alert them that you will have a lot of people coming over. They should also expect strangers and unfamiliar vehicles on your property. You can also extend the invitation to their friends who may want to buy a house in the area.
Step 3: Clean the Home
You must prep the house and make sure it is spic and span. Clear out clutter and organize your belonging. Pay attention to the kitchen and bathrooms as they have the power to make or break the sale. Finally, secure all your precious belongings.
Step 4: Actively Advertise
Take photos of the clean house and create an online announcement. Share this on all your social media platforms. Then, create fliers for the open house, including clear photos, home features, and contact information.
Step 5: To-Dos On the Event Date
On the day itself, you must have your kids and pets stay in your friend’s home as you show the house. You can also ask friends to assist you during this time. They can welcome potential buyers at the door while you show people around the house.
Remember, refrain from sharing personal info with the attendees. Though you may feel comfy cause you are in your own house, staying on guard would be more beneficial. What you share can eventually impact negotiations so stick to the facts of the house.
If you do not want to go through all that trouble yourself, you can contact a real estate agent to help you out. A professional can help you stage the house for a quick sale. They will worry about all the open house details, from marketing to making the venue look nice.
They have a wider network, so you can count on better promotions for your open house. They also have directional signs for all the thoroughfares leading to your home so people can readily find them. Best of all, they can negotiate with potential buyers on the spot.
The Benefits of Hiring a Listing or Sellers Agent
Navigating the unpredictable housing market can be overwhelming if you go the DIY route. Though a for-sale-by-owner sounds enticing, it can cost you even more money in the end, especially if you do not sell fast. Having a listing of sellers’, the agent can help guide you through the process and ensure you get top dollar for your home. Check out the benefits of working with one:
Selling a house is more complicated, especially if you are uninitiated. There is tons of paperwork, inspections, appraisals, and showings. You must be skilled in negotiating contracts and have backup plans in case something goes awry. An expert agent can guide you through the entire process from listing to closing.
Possesses the Right Tools
Agents have access to marketing channels, buyer agent networks, multiple listing services, neighborhood data, and other industry connections. An agent will have these tools plus training and certifications to sell your home fast for the right price.
Holds Knowledge on Local Market
Professional agents are attuned to what is popular with local buyers. They know how much nearby homes are selling for with all the features and amenities. With their expertise, you are in the best position to compete.
Acts as a Gatekeeper
With professionals handling the sale, they vet potential buyers on your behalf. This means keeping unqualified people from wasting your time. They also host the open house for you and worry about dealing with buyers’ queries and demands.
If you need help selling your home, give our team at RI Home Store a call. Our team will guide you through the selling process and help you host an open house. In addition, we can help you negotiate the best price.
We also have a wide network of industry partners, such as mortgage brokers, home stagers, real estate lawyers, appraisers, inspectors, and even movers. Give us a call for a free consultation so we can get your house ready and listed in no time.