Open House Pros vs. Cons

An open house is a scheduled amount of time where the home is open and available for viewing by potential buyers. Open houses have the ability to attract interested buyers and potentially lead to an offer, or alert the realtor to issues with the space.

When selling your home, how do you know if you should have an open house? Here is a list of pros and cons of holding an open house on your home.

Pros:

• Increased Awareness – Open houses can be a great form of promotion. This can be done through posting on platforms such as Facebook, Zillow, Trulia, and Realtor. Street signs are a must for directional purposes and to attract spontaneous and curious buyers. Your house can also be promoted through word of mouth by family and friends, this may attract more serious buyers.
• Convenience – While a good portion of open house visitors will have planned on stopping by and exploring this specific listing, there will also be a significant group of buyers who drop in from the street. This is why street signs are so important to point interested buyers in the right direction. There are many buyers who will stumble upon an open house sign on their way to the grocery store, lunch with friends or while walking around a neighborhood over the weekend. Open houses are so convenient and encourage just about anyone to stop by, take a look around and ask for more information about the listing.
• Open to Larger Audience – Open houses are available to more than just a potential buyer. Other agents and brokers are also invited to open houses so they can look around and see if they can find a buyer for the property. This encourages agents to work together so they can sell the home faster. Other people who may be interested in attending an open house can include neighbors in the community who can then pass on the information to their friends and family. This in turn increases the pool of who might be interested in learning more about the listing and maybe even making an offer.
• More Time to Prepare – An open house is different from a regular showing because you will have time to prepare the house. With a showing, buyers can make appointments on short notice, leaving you little time to get your home ready. During this time, you can make sure to keep your home looking its best, but realistically it is hard to maintain when you are living there. With an open house, you will have time to plan, stage, and clear everyday clutter. This is more beneficial for the potential buyers because they are seeing the home at its best. It is also helpful for them to envision what furniture they can work into the space.

Cons:

• Unqualified Buyers – A common con that comes from open houses is unqualified buyers. Open houses can also attract people in the neighborhood that are just curious to see how your house compares to theirs. It is likely to have some people not seriously looking at the house. It is very difficult to do a pre-screening of people attending the open house so keep this in mind as a risk factor.
• Security Concerns – One of the main concerns over hosting an open house is opening up a private home to strangers who may have ulterior motives for visiting. Vandalism, theft and break-ins are likely to take place during or after an open house, which is why it is important for the sellers to make sure any valuables and high-quality items are safely stored away. It is nearly impossible for a real estate agent to keep an eye on every single person that walks through an open house or supervise them as they explore the property. Open houses of vacant properties are also at an increased risk for criminals to break in and vandalize the property when no one is around.
• Less One-On-One Time With Potential Buyers – There will usually be more people than you and your real estate agent at the open house. You will not be able to give everyone personal attention and comments on the home. Sometimes this one-on-one time can push the potential buyer in the right direction.
• Lowers the Chance of Sale – Although open houses are an outstanding marketing tool and will increase the exposure of a listing, it won’t exactly increase your chances of selling the house. In fact, most home sales are not a direct result of an open house. A potential qualified buyer could attend the open house and convert into a sale, but chances are that interested buyers are more likely to make a private appointment to come by and explore the property on their own time without the distraction of other people. An open house is unnecessary for a home to sell, but it is a great tool to gain exposure and basically get the word out that this home is listed for sale. The best way to bring in interested and qualified buyers is to directly schedule private showings. When you schedule private showings, you ensure that you are working with qualified, pre-approved buyers who you have financially vetted and who are serious about making an offer and seeing the sale through.