Open Houses Revisited
The Idaho Statesman had an article about open houses today that I wanted to talk about. The article gives mixed reviews about the value of open houses in trying to sell your home. On one side, they talk to agents that say that open houses are all but worthless in trying to sell the home. On the other side, they have an agent that swears by them, saying that he sells a lot of homes that way. What the Statesman doesn’t point out is the difference between an open house in an existing home versus a brand new home in a new subdivision.
In an existing home, visitors to an open house tend to be either “nosy neighbors” or home buyers that are in the initial stages of looking for a home. Very few, if any, ready, willing and able buyers walk into an open house and purchase the home. The main reason for this is that when buyers are ready to buy, they have already done their research and found a real estate agent to help them with their search. If the home is on the MLS, the agent will have already seen it and it will either match the buyers’ criteria or not. If it matches, the buyers will see the home regardless of there being an open house or not. If it doesn’t, they won’t see it and if they happen to walk into the open house, they’ll recognize that it isn’t what they want (not enough bathrooms, not updated, whatever). (All of this assumes they are working with a competent agent.)
Now, in a new home subdivision, an open house can actually sell the home. Information about new homes and amenities are not always found on the MLS, and many new home buyers are looking for a community or neighborhood they like rather than a specific home. For these reasons, many new homes are sold through open houses.
So should you hold open houses? Unless you are a builder in a new community, you’re probably wasting your time. Instead, why not hold a house warming (cooling?) party and invite all of your friends over making sure to send them home with a flyer in case they know any buyers? Your odds of finding a ready, willing and able buyer are probably just as good.
Photo Credit: gisarah via Flickr
I think most people find homes on the internet or from the realtor visits. One thing they do and many may not realize is publize you office. I tend to watch signs go up and watch and see how long till they sell and make a note of that realtor.
I think Open houses are lookey lou’s and neighbors but for someone in town visiting many find them helpful when starting the process of looking to understand areas.
Working with a realtor is key in todays changing market.