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Do Open Houses Still Sell Homes?
Will an open house sell my home? This question is one of the most common that our real estate agents field from clients. As with many questions, the answer isn't always "yes" or "no." Often, the value of an open house depends on market conditions and location. Thus, it is essential to work closely with your real estate agent to determine the best way to leverage an open house to achieve the sale you desire.
Open Houses Generate Interest (& Potentially Higher Profit)
The primary benefit of an open house is that it generates interest in your home. Like a beacon in the night, it attracts prospective buyers and real estate agents. It is a quick way to grow the pool of interested buyers and spread the word that your home is available for sale. While it may not seem beneficial on the surface, the fact is that real estate agents who attend open houses are doing so in the search for the perfect property for their clients. For each real estate agent who visits your home, they may recommend your home to 5, 10, or 20 clients eager to make an offer on your property.
In a seller's market, the increased interest generated from an open house can result in a bidding war. As buyers compete to be the one to make an offer, it can quickly push the sale price higher than the listing price. In competitive markets, it's not uncommon for an open house to result in a sale that is 8% or more higher than the asking price. However, it still pays off in more lukewarm markets where it's common for open houses to generate a boost of 4-5%.
The "Looky Loos"
Any open house will also attract plenty of people who simply want to get a look at homes in the area. These people may be first-time homebuyers eager to see what homes are available and fit within their budget. Similarly, neighbors will want to sneak a peek at houses in their neighborhood to see how it stacks up to their property. While these people aren't likely to make an offer, they may recommend your home to their friends, family, and other people they know who are in the market for a home. Thus, showing your home to people who want to sneak a peek can still bear fruit.
Open Houses in the Digital Era
One of the disadvantages of a traditional open house is that the home is only available to view for a limited time. Typically, this is just one or two days. This means that any buyers who want to view the home can only do it during this short window. Leveraging the power and reach of technology makes it possible to "host" an open house that prospective buyers can view at their convenience. A video recording of your home lets potential buyers walk through the rooms, examine the home's features, and contact your agent to schedule a showing. Moreover, when coupled with a traditional open house, it allows prospective buyers to walk back through the home as they narrow down their choices.
Contact us for more information about open houses and the steps we take to position your home on the market. Our team will discuss your needs and help you identify the most effective strategy for selling your property.