While the real estate market took a plunge due to the pandemic, the number of people selling a home has increased considerably. Real estate marketing is on the rise, with an average of 3000 homes for sale every month in New York City alone. Most people selling a home tend to host an open house to attract potential buyers, but is that a wise move? Read here to learn more about the pros and cons of hosting an open house.
What is an Open House?
An open house is – well, a house that is open for people to visit. Hosting an open house is one of the best ways to attract potential buyers to your home and increase your chances of selling a home. The person selling their homes sets a time frame where their doors are open for anyone to come and assess the property.
An open house is a kind of property viewing, but your real estate agent helps you host all buyers simultaneously instead of a single potential buyer at a time. People visiting an open house can include buyers, other sellers, real estate agents, or people looking to pass the time.
A typical open house features include:
- Necessary information on the house
- Potential ideas on how the house can look
- Snacks (sometimes)
- Visiting the owner (rarely)
While hosting an open house has become an essential step n the home-selling process, it is not compulsory. Many people opt out of hosting an open house. However, who are the ones that are losing? Is it the people hosting an open house, or is it the people not hosting one? We must assess the pros and cons of hosting an open house to get the answer.
Pros of Hosting an Open House
Below are some of the advantages of an open house for people selling a home.
Attract Potential Buyers
The real estate market is highly competitive, and most houses get mixed in the swarm and do not get the proper attention they deserve. Hosting an open house allows home sellers to attract potential home buyers. A person buying a home is meticulous in their search and wants to understand their prospects before they finalize. As such, they are highly interested in open houses, especially if they are looking for a home in your neighborhood.
Moreover, open houses can help you attract potential buyers outside of your reach. While you might be getting offers from a particular group, you can reach out to other buyers through an open house.
You Can Increase Your Selling Price
Since an open house is nothing like a one-on-one tour where your real estate agent shows potential buyers around the house, instead, you have all potential buyers gathered in one place. This adds fuel to the competitive fire, and buyers increase their offer to out other competitors.
A Relaxing First-Hand Experience
Hosting an open house allows potential buyers to visit and look around your home and get first-hand experience with how good your place is. While pictures and virtual tools are helpful, nothing beats experience. Moreover, you create a relaxing environment for them to decide on making an offer without seeing a realtor’s eyes on them.
Helps You Gather Information
Buyers are not the only ones that visit an open house. A seller’s agent can visit the open house to gather information. Moreover, they give out information as well. You get valuable insights on how much to price your home based on your neighborhood, amenities, and more. Moreover, you get an idea of the information you should provide to potential buyers, such as nearby schools, restaurants, and more.
Cons of Hosting an Open House
Below are some of the disadvantages of hosting an open house.
Hosting an open house may increase your chances of getting robbed since there is no screening of who is coming to the open house or why you open yourself up for theft. Hence, securing all valuables before you host an open house is essential to avoid them from being stolen.
Moreover, if a huge crowd is gathered in your home, you might be at risk of sustaining property damage. It is not unusual for a vase or decoration to break during an open house, especially if families visit with their kids.
You Might End Up Wasting Time on Unqualified Buyers
Hosting an open house means that you are available to everyone. Most of the time, you or your real estate agent must accompany potential buyers to give them the necessary information and answer questions. However, you might do all that only to find out it was just a person visiting out of curiosity about what the home looks like or a real estate agent coming to gather intel. Moreover, a potential buyer might not have pre-approval for their mortgage, rendering the entire sale moot.
Rarely Promote a Sale
The chances of a sale going through because of an open house is relatively low. You have a better chance of selling a home through a private showing than hosting an open house. This is because a serious buyer will schedule a visit and assess the property to buy it. On the other hand, visitors at an open house are still debating their intentions.
You Can’t Use Your Home
One of the many cons of hosting an open house is the problem of relocating. Many people still live in the home while they are selling it. However, to host an open house, they have to open up the house for use, in turn not being able to use it themselves. Often, home sellers have to live with a family member or at a hotel.
Get Professional Help When Selling a Home
Selling a home can be stressful, especially if you are unsure what to do. Even if you weigh the pros and cons of hosting an open house, you may still be uncertain about the right choice. However, having a seller’s agent help you along the way can be a weight off your shoulders.
Contact Robert DeFalco Realty for help from a trained and experienced real estate agent when selling your home. Moreover, they can help you sell a home, from online listing to moving to your new home. Call them today at 718-987-7900 or visit their offices in New York.