Today we’re discussing whether you should conduct open houses or only have inspections by appointment. There’s no single right answer to this question, it’s really a matter of personal opinion but we wanted to help you make up your mind by highlighting some of the major pros and cons.
Something to keep in mind about open houses is that a major reason real estate agents conduct them is to show sellers that they are doing something concrete towards a sale. It’s also a great opportunity for agents to network with buyers that may be interested in other homes on their books.
One serious issues with open houses is that they may be held at times when particular buyers aren’t able to inspect. Private inspections are a clear winner here as they enable you to schedule inspections at times that suit both you and the buyer.
Another issue with open homes is that if they are well attended they can be extremely difficult to manage. Imagine trying to watch valuables, take names, listen to feedback, and answer questions if you have 20 people attend your property at the same time. In this situation it’s nearly impossible to talk meaningfully with and qualify each potential buyer.
On the flipside, a well attended open house can influence a buyers sense of urgency and scarcity, perhaps leading them to make an offer more quickly. That said, buyers will also be listening keenly to comments from other people inspecting the property at the same time. This can work for you or against you depending on how positive or negative the other buyers are being.
There’s also the possibility that an open house will not be well attended so you should consider how you’ll fare emotionally if you put a lot of work into preparing your property for an open house only to have no attendees – this can be quite a demoralising experience.
Another point which needs to be considered is the security of your home. Open homes can be a great opportunity for thieves to pocket valuable or familiarise themselves with the layout of your home whilst you’re distracted.
One occasion when you should definitely consider running an open house is if other homes in your street will be open. This makes it easy for buyers to simply stroll over if the other house in your street wasn’t what they were looking for.
Whatever you decide, make sure you’re well prepared. If you do decide to do open houses watch out for our next video explaining how best to go about them.