One of the genuinely established ways of selling real estate is to host an open house for the house marketed. Despite the popularity of open houses, attracting would-be homeowners to a newly refurbished home may prove to be quite the task. It might also present some common advantages and disadvantages for the seller, as well as the buyer.
Open houses have been a staple in the industry, but is the practice still beneficial, or is it now an outdated marketing tool? Let’s help you choose with our list of pros and cons:
PERKS OF AN OPEN HOUSE
1. VISIBILITY AND EXPOSURE
Increasing the initial exposure for the house might make it easier for potential clients to waltz in during the open house without the need to schedule a private tour. The method is especially beneficial for people who want to experience a hassle-free look at the merchandise. Also, people passing through in the nearby area, or those who may not have bothered to give a second look, maybe drawn in.
2. SEEING THE HOUSE WITH THEIR OWN EYES
Nothing compares to seeing the house in front of you than seeing it through a photograph on the internet. Sure, the internet has made it easier for real estate to be marketed. But nothing beats the thrill of being amid the ambiance that a particular home gives off after stepping in it. Buyers don’t readily visit an open house until they have thought their decision over; seeing the house firsthand may help them make the big decision.
An open house provides the unique opportunity for casual viewing of the home and all its features, without the buyer needing to book a
private showing that would entail a higher-pressure dynamic between them and the seller, which would turn off many buyers to the idea. On the other hand, opening the house to the public makes the experience more laid-back while expectations are managed. The client may review the home’s interior and features and take their time doing so.
4.CONVENIENCE TO NEW HOMEOWNERS
Those who have no experience in buying a house at all may find the idea of an open house to be a godsend, considering that the process of purchasing a home is still alien to them. Refurbished real estate is perfect for the family looking to find their forever home, and open houses encourage the ease of acquiring one by just contacting the company.
5.Showcasing the house’s features to many people at once.
The freedom to show off the house’s highlights and innovations during the open house is given to the seller. It is within their power to showcase what they have over other homes in the market listings. Also, an open house allows many people to experience the showcase with others, giving them insight into what others think and feel about the place offered.
CONS OF AN OPEN HOUSE
1.SAFETY AND SECURITY ISSUES
The notable downside in hosting open houses is the safety concern. Stranger danger is an apparent threat considering that the event is an open call for strangers to roam around the place. With several people on the site at any given time, the company agents may have difficulty keeping tabs on everyone who might have something nefarious planned.
2.HOMEOWNERS AND BROKERS HAVE BEEN WARNED AGAINST OPEN HOUSES
Criminal minds may see the open house as the opportune time to break in or layout the plans for a potential robbery. When given little to no supervision, it is common for things of value to be stolen during the open house – this is why police departments have warned against this real-estate practice because the risks are glaring.
3.THE NOSY LOOKIE-LOO
Lookie-loos are individuals who often visit open houses without possessing the real intention of purchasing the home. They look to nose around or look for home-design inspiration by their very description, but they won’t call you up to set an appointment for purchase at the end of the day because they are simply curious.
4.ATTRACT INELIGIBLE BUYERS
The disadvantage to hosting open houses is the risk of unqualified customers participating. The pre-approval of a mortgage is one of the critical steps in the process of buying a home. Without this would spell the difference between purchasing a home or not as it is not possible to sift through the qualifications of potential customers going about the house during the event. It is a concern for sellers that unqualified customers may be drawn to the open house because their spending budget may not even be close to the house’s selling price, which would waste everyone’s effort.
5.THE LIKELIHOOD OF A SALE IS LOW
With the emergence of the internet, the number of people who found their homes without even going to an open house has increased, and the attraction to open houses has dwindled over the years. In truth, the positive results of open houses prove to be minimal. Most people who participate in open houses cannot even be bothered to schedule a private tour, let alone be serious about purchasing a home. The list of available marketing strategies for the real estate industry marks open houses at the bottom of the list.
In the end, it will always be up to you to set up a home for an open house. But take note that it is not a prerequisite to selling a house. Success in securing and selling real estate will not be determined by sticking to this marketing practice. If you are a homeowner looking to sell your property, do the necessary research before attempting to open your house to strangers that may or may not have it out for you and your belongings. Or you could ask people who are qualified to know the security risks involved before venturing further out. It would not hurt to be aware of the particular ins and outs of the market before strategizing on your marketing plan. Again, in the digital age, it pays to be informed.