The Drawbacks of an Open House

The Drawbacks of an Open House

In March 17, 2018

How does open house work?

Real estate investments for an open house are a sales strategy which is more about hype than generating outcomes. There are a few real estate agents who play with the advantages comparatively more than they must, in consideration to the existence of a number of drawbacks in the process. The basic fact is, open houses rarely get indulged in the process of sale. However, there are a few agents who believe that open houses do have a place for sale. Moreover, there exist owners of the home who have no better idea. However, the primary fact regarding open houses must discourage any folk from worrying or fretting about the process.

The debate regarding whether the open house provides great marketing activity all the more boils down to the ultimate battle between real estate agents who remain at the peak of their basic game and the agents who require engaging in open houses so as to formulate additional clients. Similarly, in other words, the real estate open houses are said to be significant in inspecting the activities of the Realtors. Do open houses really sell homes? The answer to this is statistically dry and clear-cut – rarely!

Very few real estate agents require doing open houses, or they might not have a knowledge regarding where to get their immediate next prospect in case it strikes hard in the face. What the consumers require understanding is that the real buyers schedule their appointments so as to view the houses which they are really interested in inspecting.

Exactly, how many real estate buyers are there who are more or less willing, ready and able to buy a home and openly convey to themselves that if the Realtors do not own an open house then he must forget the sales deal as he is not interested! Doesn’t it sound a bit obtuse? That is because it is. When you weigh pros and cons of an open house, you find there are a lot of drawbacks by a great margin! The concept of open house rarely does the work of selling a home and moreover puts the sellers at considerable risk.

Why should you not have an Open House?

Issues regarding security: One of the greatest drawbacks of having an open house is the ground for potential theft. The overall concept of letting strangers in to stroll around the home obviously carries security risks. Since the majority number of visitors is likely to be there in the home to view and learn more, few might be there for criminal reasons. The basic fact is, during an open house process anyone is allowed to enter; even those folks can enter who are inspecting for the valuables, security weaknesses and easy points of access.

This is considered something which most of the real estate agents who oversee open houses need to scrutinize. They generally sweep this particular fact under the carpet at the expense of the seller’s loss just to allow potential train wheeling.

This is a small instance, wherein an agent inaugurated an open house in Massachusetts during springtime on a Sunday. However, the house was recorded on prior Wednesday without any showings enabled until the announcement of the open house. To be clear, the only effective means of having an open house is that it showcases the likelihood of hysteria from the end of the possibly interested buyers who view the house and the overall property management at once.

An extreme delay in exhibiting, builds up a pent-up demand in regard to the home and the opportunity for various offers and Real Estate Investments. However, the drawback was huge. There were about forty to fifty couples who entered the house during the two-hour window. The agent due to the throng of people was unable to watch each and every individual who walked through the house every time. Unfortunately, this cost the agent big time because a 5000 dollar painting got stolen from the living room wall.

The seller, of course, did not have any idea regarding the culprit nor could get help from the police who couldn’t trace anything even after inspecting the homes of the ones who visited the Open House. The good thing is that the home had insurance.

The possibility of theft: This builds up the issue of security which is justified in its cause for concern. There has been an acute documented case recorded of people breaking into the house which are for sale and stealing things, for instance, “The Open Houses Article Published by New York Times”. There are times when they do the same in homes which are unoccupied. There is enormous temptation to simply walk into the house for sale, view various things which can be taken and ultimately burglarise the entire place. However, folks, you must remember that this is not an isolated thing – this is an occurrence which takes place around the world! A sale for the house in the form of an open house is said to be an open invitation for people to perform the heinous act of theft.

Prospects which are unqualified: Did you ever come across an instance where you have driven through your way and witnessed a lovely open house and just thought of entering it for checking out the property management? There are maximum numbers of people who have actually considered this. There is certainly nothing wrong in performing the same – as you might not often get the opportunity of viewing how other people decorate their homes. The basic issue is that generally people who are heading into the open house have no intention of purchasing other than to check it out.

Neighbours who pry: An open house is considered a beacon for arousing the neighbors’ curiosity. They might be good neighbors or not so good neighbors. However, since they are to reside nearby, you might not want them to wander around your home. Sadly, there exists no possible way to dispense of them. Once you open your home door, anyone can walk into your house. You might also expect the busy little bees to stop by your home so as to discuss with the other neighbors who failed to enter or show up. Therefore, yes, this refers to the certainty that you must be doubly sure and not leave behind your underwear hanging everywhere for others to see.

The absence of one on one regard: Your existing Realtor must be stimulated to sell your house, however, he only has the capability to interact with particularly one set of homebuyers at a time. Therefore, if things get messed up or busy, there might be a great lot of missed chances. The people who are prospective homebuyers hardly get the chance to communicate with the agents of real estate. There exists no way in regard to a visit to an open house so as to compare the same with a real home viewing with the agent. Most of the folks who come by, so as to visit are generally those who would want to return back on another date for the purpose of checking things in a proper manner, in case if they are serious homebuyers.

Competition among the sellers: Other folks selling off their homes are probable to stand by and witness what you are actually planning to do with yours. This makes proper sense, at the time when they reside in the same neighbourhood with a same kind of home for sale. However, these are the probable visitors who do no good to you. They simply view what you are offering.

In fact, if they view your home and find it more appealing then they might considerably drop the price of their prevalent home so as to compete with yours. Most of the sellers who generally compete against your house would not schedule a showing to prevent any acts of snooping they themselves have conducted at your open house.

The ulterior motives of an agent: Few of the agents might be exalted to perform an open house process so that they become firmly convinced for it to be a valid method of sales. However, there involve a lot of agents who utilize open houses so as to meet various other clients. All the unwanted visitors are probable customers for the home agent.

The nosy neighbors residing just beside you would want to sell off their home later, therefore an open house is said to be an amazing place to develop a great sense of rapport with people. Also, the agent might meet with unqualified folks who might not buy the house as they are homebuyers. In case, you are willing to sell a 500000 dollars house and if you get a buyer who is willing to spend 400000 dollars and is not willing to purchase your place. Can you guess what is this buyer going to do? This homebuyer will purchase a home at this price at some other place.

And the agent who is holding the house for sale at your place has an idea about this. Will this assist you in any possible way? No, it will certainly not. There are a lot of clients who have an idea that an open house is the best way to appear busy while you seek various other clients for the future. Availing new and authentic clients is the basic reason as to why the agents of real estate hold open houses.

Rare are the cases where sales takes place: This is said to be the biggest reason to get cautious about a particular agent who glorifies his open house practices. The basic fact is that homes rarely get sold off through an open house. Based on the National Association of the Realtors, the various numbers of houses which get sold due through an open house is relatively low – around 2 percent. Yes, you did not read it wrong. Certainly, this is not a very promising number. In fact, it is quite low which can make you think about the actual worth of even holding an open house.