Will Open Houses Really Help You Sell Your House?

You have recently taken a very big step. You have decided to sell your house. There are myriad reasons that people decide to sell their homes. Sometimes they are positive: a recent promotion, a new baby, retirement, and many more. Unfortunately, there are negative reasons as well: unemployment, illness or divorce are just a few.

Whatever the circumstances, this can be a stressful time. Strangers must parade through your home sweet home and may pick it apart. With markets softening in many areas, there is an added stress of wondering whether or not your house will sell and if it does, what price will you get? That leads you to the decision of what to do about having open houses.

Open Houses

A traditional method of marketing a house is by holding it open - by having an open house. Many areas have a flood of houses listed for sale and it seems that every Sunday you see more open house signs than you can count. Is it really worth it? Will you find a buyer this way?

Pros and Cons

There are really two cases to be made here. And the decision on whether or not to have an open house may come down to personal circumstances for some people.

Many home owners worry about security. Who are these people who will be wandering around my house? Will they wander around by themselves? Or is my Realtor just using this as an excuse to pick up more buyers?

Security

These are legitimate concerns. First of all, you will probably want to confer with your Realtor to understand what her practices are at open houses. Make sure to ask if she will require every buyer to sign in with a name, address and phone number. Many Realtors these days are asking for ID as well. Understand that requesting ID at the door may turn some buyers off, so make sure that you and your Realtor are of the same mind.

Also, you will want to know whether your Realtor will be escorting each buyer around your house, or if they will be allowed to guide themselves around. There are different mindsets about this as well. If your Realtor will be accompanying everyone through the house, what happens if someone else rings the bell? You may want to be home as a back up just in case.

That being said, if you decide to have an open house and stay home for it, there are a few rules you should follow.

Don't show the house yourself unless it is absolutely necessary. Homeowners tend to overwhelm buyers with every possible detail about the house. For the first visit, buyers need to get that feeling. Buying a house is usually an emotional decision.

If you must show the house yourself be sure to answer any questions honestly. The buyer will most likely have a building inspection performed anyway and find out if any features have been exaggerated. If they feel they have been misled, they may walk away from the deal.

Don't hover. Buyers will likely feel nervous about opening closets and drawers if you are hovering. Give them a little space. In addition, they will not want to disturb you if, for example, you are watching TV in the den. Will Anyone Show Up?

With so many open house signs around each weekend, is it really worth it to hold yours open? That question is hard to answer. If you have listed your house with a Realtor, he will be familiar with which local publications get results in which areas and price ranges. He will likely place ads in those publications, and more exposure for your house never hurts.

In addition, in some markets, your Realtor can list the open house on the website for the local MLS, or Multiple Listing Service. Today, most buyers begin their search for a new house on the internet, so this is also great exposure for your open house. A buyer may even see the listing, miss the open house and schedule an appointment to see your house at a later time.

What About Nosy Neighbors?

Unfortunately, having nosy neighbors tour your house at an open house is almost unavoidable. It is nearly impossible for your Realtor to qualify buyers at the front door, so many times, neighbors will come on in. Keep in mind, however, that you never know who that neighbor will run into who is looking to buy a house. After all, exposure is exposure.

The Casual Buyer

You never know when lightning may strike. There may be someone who passes your house, sees your open house sign and makes an offer to buy your house, even though he or she was not necessarily in the market. There are also buyers who have always loved a certain house and may stop in and fall in love. This category of buyer will probably not schedule an appointment to tour your house, and, although they do not represent the majority of home buyers, they should not be discounted.

My Realtor Only Wants to Meet More Buyers

This is partially true. One of the ways that a Realtor meets new buyers is at open houses. However, this is not the only way. Your Realtor wants to do what you hired him or her to do: sell your house at the highest price to a qualified buyer. He or she may meet new buyers at your open house, but he or she may also make an appointment to show your house to a buyer from someone else's open.

Exposure, Exposure

All in all, the best way to get the highest price and best terms for your sale is to have as many people see your house as possible. Having an open house is a great way to get additional exposure and showings for your house. If no one shows up for the first open house, you may have better luck at the next one.

If you are still on the fence about whether or not to have an open house, give it some thought. There are sometimes special circumstances which make it impractical to do so. But, by in large, having an open house is usually a great way to have more buyers see your house and have it sold.