Why Open Houses Don't Always Benefit the Seller

Pros & Cons of Open Houses: a word of precaution from experts who have your best interest in mind.

When determining if you’re going to host an open house there are 3 major factors to consider: how much exposure this will bring your listing, security and whether perspective buyers are qualified.

These three major categories can be broken down even further. Exposure, for instance, can occur twofold. Firstly, this is a great excuse to promote your home online! Have your real estate agent create a fancy infographic about your home. Invite all your Facebook fans, Instagram followers and Twitter sensationalists to the open house. Your friends and family will take the post and run with it (or in this case share it) giving you FREE marketing and maximizing exposure. Establishing an online presence for your listing is a huge factor in successfully selling any home and should not be taken lightly. Don’t doubt the magical world of social media. The people who actually view your home during an open house will help spread the word as well. Even if it’s not a perfect fit for them, they may know another buyer who may be interested. Word of mouth is just as important in selling a home as an online presence. Encourage your Realtor® to actively pursue other agents in your area- this can also assist with bringing in buyers during an open house.

How comfortable are you opening your home up to strangers? Are your belongings secure? When there are one or two couples viewing your house at once, it is easy to keep tabs on their whereabouts. However, successful open house can get chaotic quickly. With upwards of 30 families in the home during the open house, it can be difficult to monitor everyone’s activity. Be sure to secure and store any valuable or sentiment items prior the open house to ensure their safety. For suggestions on preparing your home for an open house, check out this link on proofing your home.

Finally, our last word of caution is about qualified and unqualified buyers. It will be your agent’s job during the open house to engage with the crowd that comes through. Part of this process for pros is to make sure any buyers who are interested in your home are already pre-qualified by a mortgage lender. This will save you a giant headache in the future. Without that pre-qualification letter, a buyer really has no clue what they can afford as the real estate market is ever-changing. It is important to speak with a lender so they can properly advise, based on a multitude of factors, what your max mortgage can be in an area. A lender will consider, among other things, your income, length of employment, taxes on the home, insurance, desired monthly payments, credit and savings to quote buyers a realistic purchase price. On the flip side, if a buyer is properly qualified then your agent will more effectively negotiate a contract and fast-track settlement. Win-win.

For suggestions on how to prepare for an Open House, check out our list of staging tips below to help you get ready!