Why Do Open Houses Work?
There is always some discussion about the value of open houses but from our perspective, they are a critical part of a successful marketing program. We believe that many of our listing sales have been generated out of buyer activity around open houses. All parties benefit from this activity. Here are some of the many reasons Open Houses work:
Why buyers like Open Houses:
Buyers like open houses because it gives them an opportunity to browse properties without engaging their Realtor. Many buyers get their inspiration by seeing properties in person and open houses provide a great vehicle for this kind of buyer. (this is the “ I’ll know it when I see it” buyer) Some buyers also prefer to direct their own search independent of a Realtor and engage a Realtor only at purchasing time. Both of these buyer groups may “shop” casually for a property over an extended period of time but are still bonafide buyer prospects and a market segment not to be overlooked. In many cases, open houses are the only way to attract these kinds of buyers.
Buyers get to see a number of properties casually and can get a good idea of market value over time thus doing vital research by educating themselves on the market and home features most of interest to them.
Some potential buyers do not want to bother their own Realtor until they are really serious about buying. Others prefer not to have a commission driven professional trying to hasten their buying process.
Why Open House work for Sellers:
Sellers get to show off their property in a scheduled way that makes it easy for them to anticipate and prepare. It allows multiple visitors to tour the property in a defined time period and may alleviate the need for independent showings done on a buyer’s desired time table.
Open houses are easier to prepare for and may cut down on the number of showings requested, many of which happen after working hours and can be disruptive to a family schedule.
Those with children or pets will find it easier to tidy up for an open house than to have to do it regularly for individual showings that may be at any hour requested by the buyer and their representative.
Sellers get feedback both from the Realtor and buyers. The number of attendees is generally a good indication of the level of interest the property is generating.
Why Open Houses work for Realtors:
We like open houses early in a listing period to drive activity and perhaps increase competition among potential buyers. The buzz of a busy open house is a usually a very good sign and all visitors will get the message that if they are interested in the property, they should make up their mind quickly, as it is likely the property is going to sell soon. This can generate individual showings following up the open house and sometimes even offers or multiple offers.
Often some buyers will schedule an individual appointment ahead of an open house to ensure they don’t lose out on seeing the property.
Open Houses are a good advertising vehicle for a listing and it gives us a chance to feature a property. The level and degree of interest will also tell us if the listing presentation, price, and promotion is satisfactory.
Open Houses give us face-to-face selling time with buyer prospects which give us feedback on the property. We know the house best, so who better to present all the key features and benefits? By spending time in the property, we also get to know it a little better and can often make a few suggestions on tune-ups the sellers can do or ask questions that come up from buyers.
We also get a feel for the prospective buyer(s) which often comes in useful in subsequent offer negotiations.
We often do double open houses which we believe provides additional interest and traffic plus a front end loaded social media advertising plan to drive buyers to the event. If you would like to discuss how these (and other strategies) might work for your listing, by all means, give us a call 306-441-6420 or be sure to discuss with your own Realtor