Are you a real estate agent? Confused about whether to host an open house or not? Well, as everything has its pros and cons, in the same manner, hosting an open house has advantages and disadvantages.
Before jumping to the advantages and disadvantages, we must know what is an open house? If we see Indian real estate, this concept is not much prevalent as in the west, but it works practically as virtual listings and virtual property tours.
What is An Open House?
An open house is a tradition of presenting a home for sale at a time to a larger number of potential buyers. Those agents place signs on pathways or near street corners to attract passers-by, and they usually feature the homes in newspaper real estate sections to attract more people. At the end of the day, the goal is to bring in a buyer.
Some features of a Professional Open House:
1. As the open house is held by the real estate agent, you may or may not get to meet the owner.
2. When you give your information, you’ll learn everything you need to know about the house and its surroundings.
3. You may have the opportunity to meet other house hunters and obtain real estate information as well as other relevant leads.
Mostly, images or a virtual tour of the property are already available online. An open house may be available for some luxury homes or on the seller’s desire.
Advantages of an Open house
1. Increased Exposure
One of the main tasks of being a real estate agent is to give your client’s home enough buyer’s exposure. This will increase the chances of getting the home sold out early. Through promotional advertising such as newspaper ads, internet ads, listing on real estate portals, and street signage, open houses can gain additional exposure. This will eventually, creates a bulk leads and walk-ins that you would not otherwise get with regular property listings.
2. Free and Convenient
The open house visits are free and convenient for buyers and sellers respectively. Buyers can visit, inspect, and take pictures of every corner of the property as they want. On the seller’s end, it reduces the number of individual displays. The seller can prepare the home once to accept several visitors rather than arranging for several private showings.
3. Open house staging
Some staging ideas can help make your properties for sale look even more appealing and hospitable. A virtual tour for interested purchasers may be included in the pre-staging:
A virtual tour for interested purchasers may be included in the pre-staging:
- Well-kept lawns and gardens are some staging techniques employed by open house organizers.
- Vibrant flowers and newly painted wall
- Aromatic smells and fresh linen
- Snacks, beverages, and refreshments
A property with the latest appliances, security systems, and upgraded furniture is also a bonus for an open house. Aside from that, having contemporary amenities like MyGate, an intelligent end-to-end security, communication, and financial management app for gated societies, is a strong selling feature.
4. Feedback Generator
Conducting an open house gives a chance to get feedback on the property from the potential buyers. From the negative feedback, a seller can get the idea where he can improve his home so as to attract more buyers.
Disadvantages of an Open House
1. Low chances of sold
According to statistics, getting a sale via an open house is more difficult than other methods. In actuality, it might benefit a realtor more because it gives them professional exposure and gives them the opportunity to sell other properties they represent. The majority of visitors come to the property out of curiosity. Thus, private viewings of a home have better chances of earning a buyer than open houses.
2. Security Issues
It’s hard to look after everyone who comes to an open house because there will be so many visitors and you are not able to recognize each one of them. As a result, there may be any robbers or bad people who can create the trouble. Allowing strangers into anyone’s home might lead to issues such as burglary and safety concerns.
3. Relocating issue
Many, if not all, sellers or owners reside in the home they are trying to sell. The traditional method follows as when there is a lead, a visit is schedule while the owners (and their families) are present at home. With an open house, this is not the case.
While holding an open house, there are two options for dealing with the property’s occupancy.
If the owner already living in the house, they have to vacant the house on the appointed open house days. Or else, the owner has to move to a new property until their present home gets a prospect or a buyer.
There are mixed opinions on every matter. We thus see that the concept comes with its advantages and disadvantages. It might be comfortable for some people and not for others.
So, before making any decision on an open house, consider all the positive and negative aspects of holding it. A good real estate agent should sell a home regardless of conducting it or not.
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An open-house is a tradition of presenting a home for sale at a time to a larger number of potential buyers. Those agents place signs on pathways or near street corners to attract passers-by, and they usually feature the homes in newspaper real estate sections to attract more people. At the end of the day, the goal is to bring in a buyer.
- Increased Exposure
- Free and Convenient
- Open house staging
- Feedback Generator
- Low chances of sold
- Security Issues
- Relocating issue
If you are hosting an open house for potential buyers to come in, then the weekend is the best time if possible, Sunday is advisable. If you are hosting an open home for brokers, a weekday works best.