An open house is a tool that can attract buyers who want to take a quick look at your home. This is a great way for you and your agent to personally talk to buyers and share the details of your home. The biggest problem with ‘open house’, however, is that it often distracts the agent from selling their home and finding new customers.
A survey showed that less than 2% of homes sold in an open house nationwide. This low score indicates that you and your agent may be wasting your time and that you are better devoting your efforts and time to other strategies.
Many real estate agents still use open houses as part of their home sales strategy, and homeowners work together to sell their homes at Rocky Top Home Buyers. If you have attended many open houses before, you know that most of the people who visit are not the target buyers. Although this strategy attracts viewers, they are often the wrong type. These may include:
- Your neighbors – An open house will create a lot of curiosity, so expect it to attract more of your neighbors. They are not interested in buying your house. They probably only attended the event to compare your home with theirs or learn a little about their lifestyle.
- Professional Home Finders: There are people who visit an open house simply because they enjoy looking at houses. The houses are interesting and each has its own unique function. Your sign attracts these visitors and they will tell you that they are buyers looking for a home even if they are not.
The Unskilled Buyers: Do not expect every potential buyer attending the event to have the budget to buy your home. Even if they are looking for a home to buy, these buyers can not use for the sale price.
- The idea person – These are the participants whose main goal is to look at your home just to get ideas for your home. They look very interested and serious when looking at your decorations, furniture, walls, etc. These visitors are generally attracted to the open houses in expensive and very attractive houses.
- The thief: In an open house, your home is open to many strangers, and these may include thieves. There are cases where there will be many participants and it will be difficult to monitor each one. An experienced burglar can easily find the opportunity to take something valuable from your home without you and your agent noticing. It also allows burglars to search your home and give them time to come up with a plan to invade your home when no one is around.
You actually make only a small profit on this strategy and most of the profits go to your real estate agent. Currently, a sale from an open house has a small chance of happening. It is best if your agent takes the time to use other strategies, such as those that attract the right buyers and those that can sell your home at a good price.
You will not miss the opportunity if you do not host an open house. A much more important issue to consider than this strategy is to find the real estate agent who is good to work with. Look at the agent’s annual sales and how your previous customers think about the services. Even if you do not see daily or weekly activities as an open house, a good agent is someone you can trust and someone who knows how to effectively sell your home behind the scenes.
If your agent suggests holding an open house, check to see if they have a system to request names and contact information for all attendees so they can follow up and find those who are genuinely interested in bidding on your home.