Selling your home
Is An Open House Really Necessary?
Inevitibly, when selling your home, the question of whether or not to allow your agent to host open houses will come up.
The statistics for homes sold through an open house are approximately 3-6%. Not a big number.
However, if utilized properly, open houses can sometimes be an effective tool.
Why Might an Open House Not Sell Your Home?
- Some agents use open houses as a means to meet potential clients. They aren’t really there to sell your home. They’re out to impress, and they will do whatever it takes to secure a follow up meeting, even promoting your competition, if your home isn’t a fit. Which isn’t cool.
- Sometimes, agents will have someone more junior work your open house. This in itself is not an issue, but if the sub hasn’t learned about your home and isn’t easily able to answer questions, that’s a problem.
- Often, the visitors to an open house are mostly nosy neighbours and those unqualified to buy your home.
- If the market is sluggish at the time you’re selling, and with a lot of competition and few buyers, an open house will be quiet. If a buyer is serious during markets like that, they generally book an appointment with their agent to show the property.
- Condo apartment open houses are usually poorly attended, if the building allows them at all.
When is an Open House Effective?
- During a strong seller’s market, as part of a specific type of marketing plan, open houses are often very well attended and effective. We see this a lot in Toronto during heated markets.
- Weekend open houses ensure that potential buyers have access to your home, whether or not their Agent is available to show it. So you don’t miss out on a showing.
- Serious buyers who attend open houses have already been pre-approved and qualified by their Buyer Agent. They may not understand what your home’s actual value is, as compared to the asking price, but they should likely be within range.
- Your agent being present at an open house allows potential excited buyers to ask questions and receive quick answers. This can increase likelihood of an offer from them.
- If you are working with an agent who is effective, they will spend time after the open house following up with everyone, sending out more information, and letting the visitor’s Buyer Agents know that their client was expressing interest in the property. Again, increasing the chance of an offer.
- An open house hosted specifically for agents. Held during the business day, it really helps to promote your property and can generate excitment by those who will work to sell your home to their clients.
- Open houses that are advertised are much more effective. Ask your agent what they are doing to promote it to the public.
If you’re comfortable with your agent hosting open houses during the marketing of your home, they can be an effective tool.
But they are not 100% necessary. When deciding whether or not to hold open houses, we always take into consideration the current market, the type of property we are listing, and most importantly, our clients preferences.