Benefits of an Open House
If you’re selling your home, or considering selling your home, you may have given some thought to an open house.
An open house is when you invite interested buyers into your home to explore on their own time. This is an open invitation to essentially anyone who sees the sign or advertisement online.
There are pros and cons to open houses. Let’s dive into the thinking behind them!
Benefits to Hosting an Open House for Your Property in Ottawa
1. Open houses attract buyers who may be early in their home buying process
Lots of buyers who visit your open house may not be quite ready to start their process as a buyer. They may be on the fence. If your home is the perfect fit for them, you may be the only house they tour, and they may hop right into the buying process for your home! You’ll get a new set of buyers who aren’t shopping around online or aren’t already secured with a realtor who may be swaying them one way or another. This could be potentially good, but if they aren’t pre-approved, it may not be within the selling timeline you’re looking for.
2. More Exposure
At the bare minimum, an open house gives your property more exposure. People visiting could be anywhere in their buying process, but they have friends, family, coworkers, and potentially real estate agents working with them. All of this exposure is great for getting your home on the map.
3. Buyers don’t feel pressure
One of the best things about open houses is that the buyers don’t feel as much pressure as they would during a traditional showing. They can stay as short or as long as they want. They can ask questions, or they can keep things to themselves. They can really use this time to achieve exactly what they’re looking for, on their terms! This is more important than you think. Each person has their own way they’d like to be ‘sold’ to - and not everyone is really interested in the hard sell from a realtor. Some people do their best thinking by touring a home by themselves, or taking time to ponder certain parts of the home that matter most to them! Less pressure may actually contribute to a quicker sale.
4. Agents also benefit
Although as a seller this doesn’t matter much to you, it’s important to note that the agent who is running the open house gets the added benefit of meeting a large number of clients who are looking to buy in the next year or so. Typically, the open house is run by an agent other than the listing agent. Because of this, they are on the hunt for clients for their own businesses.
5. Reduces steps for buyers to come in
The buying process can be tedious and exhausting for buyers, especially if things aren’t going their way.
6. You choose the timing!
Open houses are also great because they work on your schedule. You can choose when your house is going to be the cleanest, the most clutter-free, and when you’re able to be out of the house.
7. More conscious of your overall time and schedule
On top of this, you’re also able to compile more visits to your house in just a few hours. If you’re having a ton of individual showings booked on your house, you may feel as though you’re never able to be home! But if you have an open house, a large number of people can have a similar experience at once, meaning you can be home more.
8. Can be intensive or low maintenance as you’d like
Open houses can be as simple as just having people visit your house, or as intensive as including a variety of marketing materials for guests to take home with them. Both can be effective in their own rights!
9. Increases word of mouth for your home
At the end of the day, even if the visitors of your open house don’t end up purchasing, they may know someone who is currently in the market for a new home who would be the perfect fit for your property. No press is bad press when it comes to your home! The more people who know about it, the better.
Cons of doing an open house
Not all homes and people are a good fit for an open house. It should be up to the discretion of a good real estate agent whether or not your home, market, and neighbourhood are a good fit. Here are some of the problems with open houses that you may encounter:
1. Open Houses haven’t been proven to lead to sales
Almost every documented sale comes from a private appointment with a real estate agent. Open houses may increase your chances of people visiting again for a private appointment, but rarely will someone attend an open house and then place an offer.
2. Lots of unqualified buyers will attend
An unqualified buyer is one that is not currently pre approved for a mortgage amount. Because of this, plenty of visitors to the open house are not actually in the position to buy in the next month or two.
3. “Lookie-loos”
You may find that a good number of visitors are actually just curious neighbours and other people with no intention of buying a home in the near future at all. They’re just curious about how your house looks, how it is priced, and other information.
4. Security Issues and Theft
Welcoming people into your home always increases the risk of theft or other security issues. To combat this, valuables should be put away in a safe and locked place, family photos should be hidden whenever possible, and any identification should be locked away as well. Guests should be enforced to sign in when they arrive, so if there are any issues after the open house, they can be contacted again.
5. Research does not suggest that open houses lead to higher selling prices
You and your realtor should have already established a strategy to achieve the price you want for your property - so hopefully, the open house isn’t meant to be the final piece of that plan. That being said, open houses are not to be used to negotiate a higher price for your home, just to increase the traffic on it!