ARE OPEN HOUSES A VALUABLE TOOL IN SELLING YOUR HOME?

 Most everyone is familiar with open houses, and in all likelihood during these robust real estate days, there can be several open houses going on in your neighbourhood each week.

 The question is do open houses really help sell your home?

 Across the board, realtors have mixed opinions on the effectiveness of this marketing tool. Studies have shown that only 1% of buyers are generated from an open house. In other words, the chances of a sale from an open house are unlikely.

 The prospective buyer who attends an open house many only want to see what the neighbourhood values are commanding. In this case, the buyer truly has no interest in purchasing the property. Furthermore, often times a prospective client viewing an open house has no idea about the home’s fundamentals, including what the asking price is, the number of bedrooms, number of bathrooms, or square footage. They may be new to the market and just beginning their search. In these cases, again, the likelihood of a positive outcome is remote.

 I believe that if an open house is well advertised—for this reason we at Team McDadi strongly believe in the value of extensively advertising our open houses—and if the potential buyers attending the open house already having property knowledge, then the likelihood of a sale from an open house is significantly higher.

  If the effectiveness of open houses is highly questionable, then why are so many realtors doing them?

 The answer is many realtors rely on open houses as a way to generator leads with other clients. A realtor will ask viewers to complete a guest registry where the prospective client leaves their name and number. The realtor will, in many instances, follow up and see if he can assist the client in locating their next purchase. In this way, some realtors use open houses for their own advantage.

 Another reason for the popularity of open houses is the fact sellers have begun to expect them as part of services their realtor offers.

 If your agent is going to hold an open house for you, here are my recommendations.

1. Ensure the property is being advertised in print media so that qualified buyers attend your open house.

    2.   Ensure signs advertising the open house are well posted throughout the area.

3. Put away all of your valuable belongings as you don’t want to temp any strangers.

4. Leave the home in a presentable state so that a positive, lasting, first impression is created. This can include turning lights on, adding a vase of flowers to a table and walking along your property’s sidewalk to ensure there’s no garbage.

5. It’s a good idea to leave your home for the duration of the open house. Furthermore, if you have a dog, consider removing the dog from the premises during the open house.

One of team McDadi’s policies during an open home is to allow only one party through the open house at a time. This reduces the risk of theft to a minimum as it can otherwise be difficult for a realtor to keep a watchful eye on visitors if there are numerous people in the home at one time.

 There are other factors to consider when assessing the potential effectiveness of having an open house. One of the more important considerations is the location of your property.  Conducting an open house in a high-rise condominium isn’t, in my opinion, going to be highly effective. On the other hand, having one on a highly visible street may be more worthwhile.

 In conclusion, while open houses have become a popular marketing tool in today’s real estate market, sellers shouldn’t necessarily expect a fast sale from them. However, there are advantages to holding an open house. Your agent should thoroughly discuss these with you to determine if one is right for you.