Today I’m hosting an open house at 1760 Hill Top Lane in Encinitas on a bank-owned home that screams… It’s a Deal! This brought to mind the running discussion on the benefits and effectiveness of open houses between the public and the real estate community.
Is it beneficial for the seller to have their home on display each Sunday? Is it an effective strategy to get their home sold? What about the real estate agent?
First, I believe it depends on the type of home…. is it in a gated community, in an out of way location or has features that only appeals to a small segment of the market. If so, then an open house would probably not benefit the seller or agent. I also do not believe that the benefits of an open house every weekend for a seller who is still occupying the home beneficial or effective enough for their inconvenience.
Many agents and sellers complain about looky-loos and neighbors just dropping in to be nosy or wanting decorating ideas as an ineffective use of the agent’s time and the seller’s inconvenience. I disagree because the neighbors and looky loos do know other people that may be in the market to buy a home. They talk to others about what they did over the weekend!
Statistics show that open houses do not sell the homes that are being held open more than 4% of the time. Is that worth the time spent by the seller or agent? Only they can answer that question!
For myself, another benefit is the gathering of information: Feedback on the home… learning what may sell the home faster. Also, discovering what is the current buyers perception of the real estate market.
For example, in April 2005 I was holding one of my listings open in Encinitas and began to notice a shift in the quality and quantity of buyers throughout the month. Things were changing in my mind. I just didn’t realize how much the real estate market would change over the next 4 years. Another change started occuring at open houses in January 2008 when I saw an increase in attendance in the Del Mar area For a change, I wasn’t alone for long periods of time while hosting an open house. Were either dramatic changes? No, just a slight shift that made me wondering what was happening.
What are your thoughts on open houses? What are the reasons you view open houses? I’m curious about your thoughts on this topic… let me know.
