In real estate, an open house is a scheduled event when a property that is for sale can be viewed by prospective buyers without an appointment. Typically, home sellers invite friends, family, neighborhood residents, and other locals to attend. Sellers do this so that more people can experience the home and help find the perfect buyer. With the rise of the internet and social media in recent years, many people wonder whether it is necessary to have an open house at all: Is having an open house still helpful, or is it a dated strategy that has outlived its usefulness?
If you are trying to sell your home, having an open house is, handsdown, worth the headache. Here are 5 reasons to have an open house:
1. An Open House Increases Your Home Equity and Speeds Up Your Home Sale
Nationwide, homes with open houses sell for $9,046 more and spend seven fewer days on the market than homes without open houses. While most people begin their home search online, the majority of home buyers are not purchasing their homes until they see them in person. Why? Emotion influences buying behavior.
Despite evolution and the critical thinking skills we develop in school, humans rely heavily on their feelings when decision-making. In fact, the University of Glasgow’s research suggests that all human emotions stem from these basic 4: happy, sad, afraid/surprised, and angry/disgusted.
Often times, the open house will be the first impression a buyer has of your home. You want that love at first sight moment to truly resonate. Open houses draw buyers in to not only experience your home, but your neighborhood and lifestyle. Building this relationship is essential to helping people connect emotionally to your home. If they associate happiness with your home, the fear of losing it to competition increases, and they will be more likely to put in an offer. Multiple offers drive up your home’s sale price and make your home sell faster.
2. An Open House Is a Great Way to Gain Valuable Feedback
Getting feedback from prospective buyers and their agents is essential to making sure your home is priced correctly. Learning initial impressions from people attending your open house can help you make sure your home is being presented to the market how you want it to, attracting the people you want it to.
You (or your agent) will likely ask open house goers questions like:
- What are your first impressions of this home?
- What do you like most about this home?
- What do you like least about this home?
- How much would you pay for this home to move in today?
- How does this home compare with others you’ve seen?
3. An Open House Increases Your Pool of Potential Buyers
Open Houses are a great marketing strategy when it comes to selling your home. Treating your open house as a fun, local event is a great way to attract your ideal buyer. Depending on how much time and money you want to invest in your open house, you can determine your turnout. (If you are selling with an agent, they will usually take care of promoting, planning, and funding the event.) Why not promote it as a mixer or brunch?
To build a giant buzz for your home on a national scale before it hits the market (and increase your chances of winning multiple offers), ensure it is listed on ComingSoonHomes.com! Contact us for details.
4. An Open House Inspires Your Friends & Neighbors to Help Find Your Perfect Buyer
Almost everyone has had to deal with bad neighbors at one point or another. Nobody wants to have to deal with nasty neighbors again. Whoever buys your home will be moving into your neighborhood, and your friends and neighbors will likely interact with them. That means that your neighborhood residents have a personal interest in who buys your home. Inviting your friends and neighbors to your open house can inspire them to mobilize and find your perfect buyer!
5. An Open House Is More Convenient For You & Potential Home Buyers
When selling your home, it can be inconvenient to have to round up your family on short notice to make a swift exit whenever a real estate agent needs to privately show your home to a qualified buyer. It can also be a pain to keep your home tidy at all times so you are prepared for last minute showings.
David Fairweather, chief economist at Redfin, explains how open houses make sellers lives easier: “Homes that are already primed for competition tend to be the ones with open houses…The listing agent knows [the home] will attract a lot of attention and wants to set up a convenient way for multiple potential buyers to pop in at once instead of making several appointments for private tours.” Seems like a smart time investment to us!
In addition to making home sellers’ lives easier, the open house atmosphere relieves some stress potential buyers feel during a private showing. The open house allows the touring of the home to be a bit more casual. The group setting eases buyers’ minds, as they don’t feel they’re the center of attention or pressured to sign anything right away. This feeling of ease is a much preferred first impression of a home, seller, and agent.