Whether houses sell from an open house is an interesting question. An open house doesn't hurt a home's chances of selling, but whether it actually sells the house is debatable. Here are a few points to mull over in your decision to hold (or not hold) an open house for your property.
•Getting attention is good, no matter how it comes.
Open houses are a good way to get attention. There are ads in the paper, signs on the corner and sometimes even a few colorful balloons. If you list the home online and hold an open house almost immediately, there may be a possibility the home can sell more quickly — and for a higher price. In theory, the higher the exposure, the greater the competition and therefore the price. Officials at real estate brokerage Redfin caution, however, that they rarely lead to a significantly higher price or a quicker sale.
"Every market has its own cadence to the marketing of a property," said Dana Rice, a real estate agent with Compass in the Washington, D.C., area. "You want to cast the widest net possible, and however the buyers want to see the house, you want to meet them."
•The crowd you're expecting may not be what you get.
Unless the seller's home is in an extremely popular neighborhood with busy streets nearby, it is unlikely that the open house will draw much of a crowd. The crowd that you’re most likely to get are neighbors, passersby, future home buyers, robbers and thieves, and real estate agents.
Another downside is that none of the open house visitors are vetted by a realtor; there are probably no lender pre-approvals, no anything. You know absolutely nothing about the people coming through your home.
When buyers are really in the market for a home, their agent takes them out to look at homes, and they get private tours. Generally, by the time a house is held open, a serious buyer has already seen it.
•Open houses may be more for the agent than the seller.
Realtors are taught to do open houses as a way to jump-start their businesses. “Open houses are for newer agents,” says Eli Ristine from Pan Florida Realty. “They’re less used as a selling tool and more as a vehicle for agents to meet prospects, network, and gain exposure.” Agents mostly hope that the people who take the time to stop by an open house are beginning the search process of trading up or down, or buying for first time (or neighbors who are interested in selling their own home).
Ultimately, you should discuss the right option for you and your market with your Realtor. Together, you can decide whether holding an open house is the best way to go!
Sources: CNBC.com; Zillow.com; thebalance.com
•Getting attention is good, no matter how it comes.
Open houses are a good way to get attention. There are ads in the paper, signs on the corner and sometimes even a few colorful balloons. If you list the home online and hold an open house almost immediately, there may be a possibility the home can sell more quickly — and for a higher price. In theory, the higher the exposure, the greater the competition and therefore the price. Officials at real estate brokerage Redfin caution, however, that they rarely lead to a significantly higher price or a quicker sale.
"Every market has its own cadence to the marketing of a property," said Dana Rice, a real estate agent with Compass in the Washington, D.C., area. "You want to cast the widest net possible, and however the buyers want to see the house, you want to meet them."
•The crowd you're expecting may not be what you get.
Unless the seller's home is in an extremely popular neighborhood with busy streets nearby, it is unlikely that the open house will draw much of a crowd. The crowd that you’re most likely to get are neighbors, passersby, future home buyers, robbers and thieves, and real estate agents.
Another downside is that none of the open house visitors are vetted by a realtor; there are probably no lender pre-approvals, no anything. You know absolutely nothing about the people coming through your home.
When buyers are really in the market for a home, their agent takes them out to look at homes, and they get private tours. Generally, by the time a house is held open, a serious buyer has already seen it.
•Open houses may be more for the agent than the seller.
Realtors are taught to do open houses as a way to jump-start their businesses. “Open houses are for newer agents,” says Eli Ristine from Pan Florida Realty. “They’re less used as a selling tool and more as a vehicle for agents to meet prospects, network, and gain exposure.” Agents mostly hope that the people who take the time to stop by an open house are beginning the search process of trading up or down, or buying for first time (or neighbors who are interested in selling their own home).
Ultimately, you should discuss the right option for you and your market with your Realtor. Together, you can decide whether holding an open house is the best way to go!
Sources: CNBC.com; Zillow.com; thebalance.com
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