Homebuyers love open houses because they get to tour houses in a casual, low-pressure environment without making an appointment for a private showing. But what about sellers? Are open houses worth the effort for sellers? Will they really help you sell your house faster?
Here are the pros and cons of open houses for sellers.
Pros of Open Houses for Sellers
1. Greater Exposure to Potential Buyers
The more potential buyers you can reach in your first weeks on the market, the more likely you are to sell your house quickly for top dollar. And open houses typically provide additional exposure to a wide range of buyers.
In addition to marketing the open house, your agent will personally invite their buyers as well as other agents from the brokerage (and their buyers!). Your agent might even invite the neighbors. Even if your neighbors aren’t likely to buy your home, they might know someone who’s looking to buy in the area. So the neighbors can actually help us find a buyer!
2. Convenience
We understand that having your house on the market is inconvenient. Having to keep your house show-ready and leave the house for each private showing is tiresome.
But, if the open house brings you a buyer, and we get the house under contract, we can stop showing your house! Having one open house for an afternoon is more convenient for many sellers than hosting countless private showings.
Just keep in mind that some private showings will still be necessary. Open house guests might even want to schedule a private tour to take a second look. This is a good sign that the buyers are very interested!
3. Can Foster Buyer Competition
When one buyer sees other buyers asking questions and showing interest at the open house, it can make them want the house more.
You might even see multiple offers after an open house!
Cons of Open Houses for Sellers
1. Unqualified Buyers
Open houses are inherently open to everyone. So you will likely have a few people who would not qualify to buy the house in attendance. This is different from private showings, in which buyers are usually pre-qualified or pre-approved by a lender to confirm that they can qualify for financing to purchase the house.
2. Not Suitable for All Listings
Open houses in the city or suburbs might get a lot of traffic as people happen by, see the open house signs, and decide to pop in spontaneously. Rural properties are far less likely to get traffic from an open house. Casual buyers won’t want to make the drive to the property, and serious buyers will make an appointment for a private showing. Your listing agent can help you decide if an open house is the right fit for your unique property.
3. Possible Damage or Theft
While damage and theft are not likely during an open house, they can happen. The real estate agent hosting your open house will take precautions (like asking attendees to sign in and keeping an eye on the property as buyers walkthrough). But it’s also a good idea to secure any valuables or take them with you when you leave before the open house.
Should I Have an Open House?
Many factors play a role in deciding whether an open house is the right move for you. Market conditions, location, buyer expectations, and your personal preferences are all important considerations.
Your real estate agent will be able to explain if an open house makes sense for your unique house in your current, local market. Then you can discuss any questions or concerns you may have about how the open house is managed.
Don’t have an agent yet? Contact the experts at Sequoia Real Estate! We have the skill, knowledge, and experience to properly advise you on your open house and to negotiate the best price and best terms on your sale. We look forward to serving you!