PROs and CONs of an Open House When Selling Your Home

Are you getting ready to list your home for sale and considering the possibility of an open house? Well, hold that thought for a moment as we’ll be taking a look and whether or not they actually work. The effectiveness of an open house is a contentious debate not just by homeowners but real estate experts alike. However, we’re going to let you be the judge and we uncover both the pros and cons of open houses.

PROs of an Open House

Let’s first start with the benefits of open houses which include:

More Exposure
An open house can appeal to the casual buyer. People who are normally put off by the formality of reserving a private showing. Besides that, it can also reel in more eyes than any listing ever could. Your family and friends may help spread the word across their social circles who in turn may spread the word. You’re going to earn the attention of both serious and spontaneous buyers as well. Be sure to throw in some signage and advertising for good measure though.

Show Ready
With a traditional showing, perspective buyers crop up out of the blue, which might leave little time to get your house “show ready.” Even if you got your home “show ready” prior to listing, maintaining that spotless condition can be next to impossible.

An open house, on the other hand, gives you enough time to prepare. You’ll be able to get rid of those laundry piles, clear clutter wherever it lies, and empty wastebaskets. Basically, do whatever is necessary to make your house visually and sensually appealing.

Friendly Neighbors
Potential buyers are not only checking out your home they are also getting a feel of the neighborhood in the process. Having great neighbors can aid your cause and if they like the community then that’s sure to swing things in your favor. Many neighbors are out and about during open houses in their neighborhood, so this could be a plus if you have great neighbors.

Save on Marketing
Individual showings entail weeks of advertising which can require a hefty marketing budget as opposed to a one-day affair that could guarantee success on the first time. Now, this is only a pro for the person who’s paying and marketing the home, which is typically the listing agent.

CONs of an Open House

Now let’s take a look at the other side of the coin and explore the downsides:

Lack of One-on-One Attention
You’ll have only one Realtor, maybe two, to handle a multitude of people. This means there’s not a lot of time for that precious one-on-one sit-down or private walk-through tour which could crucially shove a client on the fence in the desired direction. What’s more, other potential buyers might not get the chance to speak to your agent altogether.

More Unserious Buyers than Serious
Sure you’ll probably get the soaring numbers you so desire. However, few serious buyers consider an open house as a great place to land their next property.

Curious passersby and nosy neighbors make up the lion’s share of the visiting crowd. Such events mostly attract lookie-loos otherwise known as people planning on spending nothing else but their time while wasting yours.

Possible Thefts
Open houses also afford a great opportunity for those with ill motives to land an easy steal. Not everyone waltzing into your home is actually interested in buying it so you need to watch out for that as well.

You can get around this by keeping away your valuables, that in itself warrants a lot of work. And even then, it doesn’t completely alleviate the threat as others could be taking note of loopholes to exploit later on.

You read that correctly, people may be casing your home to rob it in the future. After all, they’ll know the layout of your home, and be able to determine how many people live there and their approximate age. They’ll also be able to see the type of valuables you may have, such as electronics and collectibles.

Final Thoughts

So do open houses actually work? That is the main question home sellers want to know is the risk worth the reward? If we go by the findings from the National Association of Realtors the conversion rate stands around 2%. While the prospective buyers walking through your home may use your Realtor to purchase a home them acutally purchasing your home are very slim.

Nonetheless, put the cons to one side of your preference scale, the advantages to the other and you’ll know whether having an open house is the best option for you.

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Popular Open Houses Questions

If your home isn’t selling will an open house make a difference? No, odds are if your home has been sitting on the market for several weeks or months it’s unlikely an open house will make a difference. The only way it could make a difference is if you’re unable to allow showings regularly. In that case, if there are buyers interested in your property they’ll now have an opportunity to view it. However, if gaining access to your home isn’t an issue then odds are your home is overpriced or doesn’t show well.

Who do open houses really benefit? Oftentimes the seller won’t benefit from an open house, but the agent hosting the event will. In fact, a lot of agents’ main purpose for hosting an open house is to pick up additional clients. If a buyer walks in and wants to purchase your home, great! However, they know the odds of that happening are extremely low, so they’re looking to meet potential sellers and buyers.

How much does an open house cost? It usually doesn’t cost a dime to hold an open house. However, some agents might choose to provide beverages and snacks, which in that case the cost of these items, and the agent usually pays for anything they decide to bring.

What is a good turnout for an open house? A “good” turnout is when serious buyers attend the open house and at least one or all of them decide to submit an offer. Otherwise, the number of people walking through a home is pretty meaningless if they have zero intention of buying a home.

Do you have to have an open house? If your listing agent is telling you an open house is a must in order to sell your home you may want to question their motives. With the digital age we live in open houses aren’t necessary to sell a home in any type of market. From professional real estate photographs, walk-through video tours, and floorplans, to a detailed description there are so many tools that will attract serious and motivated buyers to your home.

What items should I remove during an open house? There are many precautions you can take to keep your home safe during an open house. Remove as many personal and valuable items as possible. This includes family photographs, money, jewelry, and prescription drugs. In addition to removing things, you can also add things like security cameras and a security alarm. This way if someone is casing your home they’ll see all of the security measures you’ve taken and will probably rule out coming back at a later date.

About the Author

Top Wellington Realtor, Michelle Gibson, wrote: “PROs and CONs of an Open House when Selling Your Home.”

Michelle has been specializing in residential real estate since 2001 throughout Wellington Florida and the surrounding area. Whether you’re looking to buy, sell or rent she will guide you through the entire real estate transaction. If you’re ready to put Michelle’s knowledge and expertise to work for you call or e-mail her today.

Areas of service include Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres, and more.

PROs and CONs of an Open House When Selling Your Home