Pros and Cons of Open Houses

Selling your home? Considering holding an open house to spark interest? Open houses have long been a point of contention between seller and real estate agents. Some sellers insist upon them, refuse to have them or are undecided about them. Real estate agents are the same: some love them, hate them or don’t have an opinion either way. Learn about some of the pros and cons of hosting an open house, and decide if it’s a great option for you or not.

Pros

There are both negative and positive results to holding an open house. By holding an open house you may be able to attract buyers who are dragging their feet on the start of their house hunt. Some buyers may not be sure as to how to get the ball rolling on a house hunt, and an open house is a great way to get some potential buyers in the door. An open house sign on the side of the street may attract someone who has not yet begun the steps to start house hunting. They allow potential buyers not to feel pressured.

Open houses give great additional exposure to a home. Often open houses are advertised with street signs, newspaper ads, ads online and more. They may also be beneficial to your realtor, as it gives them a chance to connect with other potential buyers.

Cons

Open houses are not necessary to sell a home. The percentage of homes that sell as a result of an open house can actually be quite low. More potential buyers schedule private showings of properties that they’re seriously interested in. Most buyers want to be taken through the home by an agent, and learn about the property. Most open house crowds are less serious.

In order for a potential buyer to be viewing homes with an agent, they must be pre-approved for a certain level of mortgage. The potential buyers that you’re going to attract with an open house could contain a majority of visitors that aren’t even pre-approved. Having people walking through your home, that can’t afford to buy it, is a waste of your time. You would be upset with a realtor that kept showing your home to potential buyers that couldn’t afford to purchase it. Hosting an open house can sometimes be the equivalent of this.

Final takeaway

Deciding to hold an open house for your home is a choice you must make. Consult your real estate agent and get their thoughts on it. Some think that open houses are old fashioned, and in today’s market where the seller has technology at their fingertips, they’ll probably do most of their research online.