PROS AND CONS OF AN OPEN HOUSE
What is an open house?
An open house is a term that is used in real states. Open house means an open tour to the house by potential buyers. This is a scheduled time when a house or any residential property is designated to be available for the visitors. During this time house owners or renters vacant the premises so that buyers can see the whole property
PROS OF AN OPEN HOUSE
An attraction for buyers who do not have information about home
Buying a lot of people does not have any idea about the home buying process. For those people, such open houses play an important role to get proper guidance and tips. On such open houses, they can meet the different realtors and get more appropriate information. Also, the people see this attractive while passing through. When they see a board of open house they stop and visit the premises which help them to get more information.
- Additional Exposure
The main goal of realtors is to increase the exposure of a house or any property. As realtors have a slot of contacts, so they can attract more buyers which increases the probability of getting a hood qualified buyer. Without maximum exposure and a good marketing system, it is very difficult to increase the chances of selling a house. you can use newspapers and ads. No doubt today is the time of internet and virtual stuff but walk-in visits of houses still have their charm. Most people join open houses for knowledge, tips, and tricks before buying or even planning to buy a house. So, open houses give a lot of exposure in this way.
- Make buyers comfortable
Most of the realtors, when they come up with clients, try to make them feel less pressured. Even most of the sellers allow the buyers to visit the whole house without any pressure. Even most of the sellers or realtors serve the buyers with champagne and some sweets to make them feel comfortable. The second thing which makes buyers comfortable is the company and the right guidance by the seller. When a seller gives all the information necessary for a buyer and talk in a friendly way, this makes a buyer impress and this helps to sell a house in a better way.
- Allows realtors to pick up new buyer’s
Open houses are a great source for realtors to attract more new buyers. They need to give buyers more information about premises so that they feel comfortable and can see the house with more interest. After visiting open houses, interested buyers need to consult a realtor. A Realtor usually arranges these open houses to get more buyers.
CONS OF OPEN HOUSE
- Fewer chances of a sale
If we talk about statistics, only 2 to 3% of houses are sold by open houses. Private visits by consulting realtors are preferable over open houses. In open houses, a lot of people come which creates a hustle. In those people, most of the people are not interested in buying houses, they just give a visit to see premises and interior designing of houses.
- Inexperienced and unqualified buyers
In open houses, most people do not even know the process of buying a house. For buying a house one must obtain a mortgage pre-approval which most of the buyers don’t have. When a lot of people attend an open house, it creates a rush. No seller wants to rush the people who are not even qualified for buying a house or who cannot afford it. So, there must be some sort of screening of buyers so that there will be less rush in open houses.
- Neighbors try to look at houses
many people do not visit open houses for buying purposes. A few neighbors visit an open house to get to know about the houses of their neighbors. All the houses vary even when they are in the same society or same block. These nosy neighbors usually visit open houses to compare their own houses. They also try to find loose ends in their houses which is very annoying. Sellers do not feel got to attend such people who has no intentions to buy a house.
- Security issues
In open houses, a lot of people come and visit the places. Sometimes people target the houses. They visit houses in open houses and note all the details. After knowing all the details people try to break in and vandalize into houses. These chances are increased after open houses especially in the case of vacant houses.
- Increased theft scenarios
When you allow a lot of strangers to roam in your house, the risk of theft also increases. Before an open house, take care of your valuable things to avoid such scenarios. People steal electronics, jewelry, or even prescribed medicines. Before arranging an open house talk to your realtor to take important precautionary measures to avoid such scenarios. If you don’t talk about this before then the realtor will not be responsible for missing items.
- Excessive Stress
Due to the current situation of COVID-19, the housing market is not that hot. So, the first impression about the house is very important. Open houses make people interested in the house but often open houses make them think that there must be something wrong with the house.
- Final thoughts.
Before deciding on an open house, think about the benefits and losses of an open house. But it is preferable to hire a good agent because a good agent help to sell your house no matter you host an open house or not. By considering all the above points, I think that open houses have more negative points than positive ones. There are some really good realtors in the market which helps a lot to sell your house. If we talk statistically percentage of selling houses due to open houses is way too low. Open houses are old-fashioned now, now people usually rely on virtual tours or people research online rather than visiting in person. So, according to my opinion, open houses are not a good idea to sell your house or to give access to strangers.