The use of an open house is a traditional real estate marketing tactic that showed significant results. However, in the internet age, many people agree that the open house has become obsolete compared to the new platforms introduced by the internet.
These two little words are known for striking fear into the hearts of many and enthusiasm in the minds of several others. While they are very fun and informative events, they should not be taken lightly – they can be very stressful to prepare for and host!
While open houses can be stressful events for anyone involved (except the observers, perhaps), they can be advantageous for both the seller and the realtor involved.
Open houses can be difficult to prepare and host without any mishaps. Just like many other tactics, the use of an open house has benefits and demerits that each interested party should be aware so that they can make an informed decision.
- Open to all
it is not just prospective buyers who come to an open house, but also brokers who might want to team up on the sale and usually provide advice on ways to help a home sell faster.
- More exposure
The chances of a serious bid may be slim, but an open house usually will draw people, particularly if the house is priced right.
“Pricing has to be very sharp in today’s market, anyway. If you have a new property, and you’re putting it out with an open house for the first time, you should check all of the comparable homes in the area,” Pitlake says. “If your price point is 5 percent under the comparables, you’ll take all of those customers away from the competition.”
- Actual browsing
The Web may be the fastest way to find a home, but nothing beats walking through a house and seeing it firsthand, say some agents.
- Finding new customers
Open houses are often the place where a potential buyer can wander in from the street.
“Yes, you get the nosy neighbors who drop in, but it’s amazing how many people move to another house in their neighborhood, so these are also potential customers,” says Regina Koller.
- Rarely produces a bid
What brokers seem to agree on is that open houses are not a great tool for selling a particular home. “An open house works more for the agent, as far as generating new buyer leads. They don’t necessarily help the homeowner, but [very often] the buyers who come to an open house usually buy another property from that broker.”
- Nosy neighbors
Hosting an open house has always been a magnet for attracting curious neighbors just do not expect them to be friendly with an offer. “You always get the nosy neighbors down the block or the bicycle rider or the people walking the dog or their baby down the street,” Pitlake says.
- Security concerns
Having an open house is basically an open invitation for anyone to enter your home, so hide the valuables and breakables. Last year, two Hamptons women pulled a string of thefts at open houses in Manhattan, slipping everything from a Tiffany clock to a bottle of Champagne.
- Too much stress
With the housing market so tight these days, first impressions are more critical than ever. Hosting an open house is just one more thing to drive a seller crazy
- The Internet Has made Open Houses Less Effective
Ten or so years ago, open houses were the thing to do to show off your home to the public to pique interest in any potential buyers – and it was pretty effective, too! Now people tend to use the Internet as their way of viewing a home before they want to come see it for themselves.
- Open Houses Can Be Very Stressful
First impressions are more important now than ever these days. Making sure your home looks picture-perfect to the public can drive you up the wall. In addition, after you clean your home, you will more than likely need to clean again after everyone leaves.