Whether you are a first-time buyer or an experienced owner, purchasing a home necessitates some homework. Buying a house is a wonderful milestone, but it can also be a bit daunting. There is a lot to accomplish between applying for a loan, attending open houses and/or private showings. When you are ready to begin touring the houses you are interested in, you have to decide if an open house or a private showing is a better option for you or whether you do both. There are several distinctions between an open house and a private showing, and strangely, one is not necessarily superior to the other. They are, however, stronger at different stages of the home-buying process or for different consumers.
What exactly is an open house?
An open house is when a realtor invites home buyers and the general public to a home for sale. Open houses are often conducted on weekends, in the late morning or afternoon. Oftentimes, they last a few hours and are hosted by the seller’s real estate agent. The realtor would generally market the event using marketing tactics like signage, fliers, and internet listings to attract purchasers.
One of the most common questions we hear from home sellers is whether this option is effective. The simple answer is yes. According to a Zillow Group Consumer Housing Trends Report, 72 percent of sellers in cities, 63 percent in the suburbs, and 47 percent in rural regions host an open house. But, do open houses sell homes, and how effective are they? Summit Way Realty is here to look in depth at the advantages and disadvantages of the real estate strategy.
Who goes to an open house?
At this type of gathering, you’ll primarily encounter potential buyers, but you could also run into:
- Neighbors
- People traveling through
- Agents of real estate
- Future house purchasers who aren’t quite ready to buy
- Sellers who wish to view comparable houses in the region
Advantages and Disadvantages of an Open House
What are the Advantages?
Although many agents believe that open houses are beneficial, it is difficult to tell what proportion of home sales are directly related to that home’s open house. Aside from the widely held belief that the gathering is an essential component of the home-selling process, there are some significant advantages to inviting potential buyers inside your home. For example:
- An open house can increase your home’s visibility and perhaps decrease its time on the market. The more buyers that walk through a property, create a larger pool of potential buyers that may be interested in making an offer.
- Open houses allow the seller to observe how much public interest there is in their local real estate market.
- An open house makes it easy for individuals who are thinking about purchasing a home, but aren’t sure whether your house or area is a good fit to have a look.
- If your house has been better maintained or has more features, highlight the advantages it has over your neighbors’ homes and other listings on the market.
What are the Disadvantages?
While holding an open house has advantages, there are also downsides that many property sellers are unaware of or fail to consider. These are some examples:
- There is no evidence that open houses result in increased selling prices.
- Allowing strangers to enter your house raises concerns about theft and security.
- Because open house attendees are not required to be working with a real estate agent, they frequently draw what real estate professionals refer to as “lookie-loos.” These are folks who are not looking to buy a property and are merely interested.
These are just a few of the variables to consider when considering whether or not to have an open house for your property. Before making a decision, talk with your real estate agent to explore the benefits and drawbacks of an open house.
Potential Buyers May Feel More at Ease at an Open House
If you are a home buyer, you can visit many open houses in a single day. With a formal showing, you schedule a time with your agent, and the home must be available at the time you intend to look at it. There’s just a lot of planning to do. With an open house, buyers may be more inclined to go look at a property on which they are undecided about making an offer. It allows them to get their foot in the door without having to make an appointment, allowing them to evaluate whether or not they are interested in proceeding with setting up an appointment for a private viewing.
What Exactly is a Private Showing?
A private showing is a professionally planned appointment that allows a prospective buyer to see your house. Buyers will be accompanied to your property by either your real estate agent or another licensed sales professional who has been pre-screened and authorized by your agency.
Private showings are ideal for purchasers who have established their goals and needs in terms of pricing, size, style, and location. When visiting an open house, there are generally quite a few people viewing the home, which can make it more difficult for buyers to take in all of the features. However, if a buyer is interested in a home after going through an open house, they will often set up a private viewing which allows them to walk through the home without the distractions of traffic.
In Closing
Whether you’re new to the home-buying process or a seasoned expert, the most crucial part is working with an agent you can rely on. The entire procedure may be stressful, especially if you are doing it on your own. Attending an open house is also a great way to find potential homes as well as finding an agent that can help you with your home search. However, when you’re ready and have a certain home/neighborhood in mind, it’s best to attend a private showing with your agent.
At Summit Way Realty, our experienced agents are committed to providing our clients with unparalleled market knowledge, marketing strategies, and so much more. We have real estate tips for both buyers and sellers. Contact our real estate agents today and let us provide you with the very best experience in real estate sales, brokerage, and more!
