If you have listed a home before, you’ve probably heard your real estate agent talk about open houses. An open house is a scheduled period of time, usually a few hours, when a home is available for viewing by potential buyers.
But how do you know if you should have an open house? Some real estate agents love them, and others are indifferent about them. Let’s talk about some advantages and disadvantages of open houses.
Advantage #1: Increased Exposure And Awareness
One of the biggest advantages of an open house is the increased awareness it brings to the home. Hosting an open house means you will be doing additional marketing to promote the open house, bringing more traffic to your listing online.
Advantage #2: Open To The Public
Open houses are a chance to bring many people into your home at once. Due to the more laid-back approach of an open house, they give an opportunity for casual buyers who drive by and see the sign to stop in and take a look.
Advantage #3: More Prep Time
Sometimes private showings are scheduled at the last minute, which doesn’t give sellers much time to prepare. Open houses are typically scheduled a week or two in advance to provide ample time for marketing, which means more time to get the home ready!
Disadvantage #1: Unqualified Buyers
One of the most common disadvantages of open houses is unqualified buyers. Open houses attract a lot of people, and sometimes they have not talked to a lender yet or have even started the home-buying process. Ultimately, you want the people who are coming through your open house to be able to buy it if they’re interested.
Disadvantage #2: Low Probability Of Sale
Open houses can bring a lot of people in, but most of the time, offers are not being written at the open house. With private showings, typically, the buyers have already been vetted by the real estate agent and are more prepared to write an offer.
Disadvantage #3: Nosey Neighbors
Since open houses are open to everyone, sometimes you get people who have no interest in purchasing the home. These people, known as “nosey neighbors,” just want to see what your home looks like and compare it to theirs.
Ultimately, it’s about what you are the most comfortable with. While open houses are a great way to bring exposure to your listing, they don’t always work. If you have any questions about open houses or how to gain exposure on your listing, reach out to us! We would love to help!