7 Pros and Cons of Holding an Open House
Are you considering holding an open house before you sell your home? Here are the top pros and cons of holding an open house.
When selling you, an open house will be extremely beneficial. While it will help you sell your home faster, it can be a bit overwhelming because there are many things to consider.
In real estate, an open house event is when potential buyers have the chance to tour the home that is listed for sale. The best time to hold an open house is the first Sunday after your home is listed for sale, as this will generate the most excitement around your home. Talk with your real estate agent about how to stage your home so buyers will be more likely to make an offer.
The home buying and selling process will be challenging to navigate, and one of your main priorities should be to sell your home fast and for the most money. An open house will definitely help you meet this goal.
Whether you are a new real estate agent or a seller, an open house is a crucial part of the selling process. As you prepare to sell your home and host an open house, be aware of the many pros and cons.
Keep reading to learn about the pros and cons of holding an open house.
1. Pros of an Open House: Creating a Low-Pressure Environment
One of the number one pros of hosting an open house as a seller and agent is creating a low-pressure environment for buyers. An open house is typically a laid-back event. Buyers have the chance to walk through the home on their own and ask questions if they would like.
It is a good idea for a realtor to allow buyers to walk through the home on their own. It can be hard to sell a home if you are in your buyer's face or pressuring them. Most buyers already have an idea of what kind of home they want and are looking through the home for those important qualities.
Additionally, as a realtor, if you do a good job at the open house, you could attract new clients. This is your time to show off your skills, but ensure you don't overdo it by pressuring potential buyers. Just give them the time, as some buyers like to take their time walking through the home. One of the worst things to do as a seller is to make buyers feel rushed. So, relax and let your realtor do their thing.
2. Pros of an Open House: More Time to Prepare
During a regular house showing, buyers can make appointments on short notice. This doesn't give you enough time to prepare the home. You will set the dates for an open house, giving as much time as you need to get the home ready for buyers.
While preparing for an open house, you have time to plan, stage, and clear everyday clutter. This is extremely beneficial for buyers who want to be able to see themselves living in the home. Additionally, you will want to showcase the home's best features; this will give you the time to do so.
A couple of ways to prepare the home are to declutter, make necessary repairs, deep clean, and even bake cookies. You will, of course, want a clean home, free of the owner's belongings. Buyers need to be able to envision themselves living in the home.
If any small repairs need to be made, ensure they are completed ahead of time. Buyers will be searching for problems, so make sure there are no broken handles, drawers, or any minor problems that would add to the buyer's list of expenses. This can also mean adding improvements that add value for resale.
Additionally, as a realtor, while you don't want to bombard buyers with questions, you do want them to stay in the home as long as possible. There are some small ways in which to make this happen, one of which is baking cookies. Not only will this make the home smell good, but it may increase the time buyers stay in the home. You can also pass our souvenirs like dish towels or pens. All of these things will make the home more memorable.
3. Pros of an Open House: Increased Awareness
One of the main reasons for holding an open house is to increase awareness of the home. Open houses are a great form of promotion. This can be accomplished through posting the home online, passing out fliers, or putting up signs.
Street signs are a must for directional purposes and to attract spontaneous buyers. Your clients can also invite their neighbors, friends, and family members to attract serious buyers.
Marketing a home is crucial in order to sell the home the fastest. Your target audience is not limited to potential buyers; you can also invite people you know to recommend your house to their friends and family.
Some realtors even throw open house block parties. This can attract a great deal of attention and make the home more memorable, which is one of the main parts of an open house. Your home will probably not be the only one that buyers are looking at, so you want to make yours as memorable as possible. Promoting the open house will create awareness and interest in the home.
4. Cons of an Open House: Security Issues
The main con of holding an open house is security issues. Open houses allow strangers to walk through your home with little supervision. This can lead to people stealing items from your home or even vandalizing your property. While this isn't extremely likely, it should always be a concern.
This is partially why putting away valuable items is so important. You don't want any of your favorite items being stolen or easy to access during your open house. You can always hire security or have your realtor keep a close eye on guests throughout the process.
Another scary truth about open houses is that they can give criminals an opportunity to investigate your home before they commit a crime. You should ensure to free your home of all valuable items and lock your doors at all time before and after your open house.
According to the National Association of Realtors, only 23% of realtors have recorded that they have experienced a situation that made them fear for their personal safety or the safety of their personal information in 2022. According to the Member Safety Residential Report, 24% of realtors have reported that they feared for their personal safety during an open house. This is why it is always better to be safe rather than sorry.
5. Cons of an Open House: Less One-On-One Time With Potential Buyers
While you don't want to pressure realtors too much, you are still trying to sell them a home, and it can be hard if you give them too much space. It can be difficult to find that sweet spot between giving buyers their space and talking to them one-on-one.
There will probably be more people than you and your real estate agent at the open house. Meaning you won't have the time to give everyone personal attention and comments on the home. Sometimes, one-on-one time can give a potential buyer the push they need to make an offer on the home. During the open house, you may not have the time to have this conversation, but you can still try to push them in the right direction.
6. Cons of an Open House: Unqualified Buyers
One of the more common downsides of holding an open house is the amount of unqualified buyers. While you will have a great deal of qualified buyers, there will be some unqualified buyers, too.
You want buyers who are able to buy the home. Unfortunately, some people in the neighborhood are just curious to see how the home looks compared to their own. It is likely that some people are simply there to look around and have no interest in putting an offer down. As a realtor, you can't do a prescreening of the buyers attending the open house, so keep in mind this risk before holding your open house.
7. Should You Hold an Open House?
There are many important factors that come into play that most sellers don't consider, whether this is your first home or 100th. Selling a home fast requires a lot of preparation and attention to detail.
As you make the decision of whether to hold an open house, ensure you are considering all the risks and benefits. In the end, it is your decision as the seller, but remember that an open house can help you significantly in selling your home faster and for more money.
Methodology
We used information and data from several different sources, as well as our own data, to determine everything you need to know about the pros and cons of holding an open house. Most of the data was sourced from the following sources:
FAQ: Pros and Cons of Holding an Open House
Here are some commonly asked questions about the pros and cons of holding an open house.
Why should I host an open house?
An open house provides a real estate agent with a storefront from which to do their business deals. As an agent, you stage the home and meet prospective homebuyers, establish relationships, expand your clientele, and make the deal.
What is the purpose of an open house?
An open house is used for potential buyers to see a home before making an offer. This is also a great time for real estate agents to establish relationships with potential clientele.
What is the best day to host an open house?
Saturday and Sunday are typically the best days for open houses. If you do hold an open house during the weekdays, consider holding it between 4 p.m. and 7 p.m. to ensure most homebuyers are off work.
What draws people to an open house?
One main thing that draws people in is food and gifts. Not only will this bring in guests, but it will also make the home smell good and ensure that people stay longer.
What do you hand out at an open house?
Most listing agents hand out small souvenirs like pens, cups, koozies, or dish towels. Similar to the food at an open house, this will make the home and agent more memorable, and they will be likely to either buy the home or contact the agent in the future.
Pros and Cons of Holding an Open House - The Bottom Line
Regardless of if you are holding an open house or attending one, keep in mind all the pros and cons. The best way to make an informed decision, is to way all your options. If you are planning on attending an open house, you should also be aware of these pros and cons so you will be prepared.
As you plan your open house, it will be time to decide where to move next; consider the Triangle, which has many homes with amenities and local favorites surrounding your family. Whether you are searching for a single-family home, townhome, short sale, or apartment complex, you are bound to find the best home in Raleigh for you and your family for the best price.
Before you buy your next home in the Triangle, feel free to contact one of our helpful real estate specialists, as they are eager to help you find the perfect home. We know that buying a home can be overwhelming, but a real estate agent can walk you through the entire process.
