There are many theories on open houses and the effectiveness of them. Many agents opt out of open houses because they don’t find them to be effective and many sellers prefer not to have open houses because they know it rarely brings in a buyer. So is there any benefit to having open houses? Absolutely.
Most agents who host open houses do it for one reason and that is to solicit new business. The Guest Registration at the front door is a way for agents to get you onto their mailing lists and send you a bunch of junk you don’t want. I hold open houses for 3 main reasons which are very beneficial to MY SELLERS: They eliminate pesky neighbours, they allow unsigned buyers to view the property without feeling pressured AND it can provide you the opportunity to save thousands of dollars.
Neighbours always want to snoop around and see homes in the area, who wouldn’t? But here is the thing, if you don’t host an open house and they really want to see the property they will call the listing agent or an agent they know to make a booking. This is going to result in you being kicked out of your house for an hour to show it to someone who has absolutely no interest in buying it.
Many people view open houses who are not signed to an agent. This is most common with younger consumers who don’t want to fully commit to an agent until they are ready to buy. This does not mean they are not serious buyers, but they will not find an agent willing to take them from house to house without signing a buyer representation agreement. An open house allows these potential purchasers to view your property without feeling any pressure AND without making a private viewing request.
Of course, not to be forgotten, you can save thousands of dollars. Many agents will reduce the overall commission if they are the person bringing in the buyer. The rate that I charge for bringing in a buyer that is not under contract is 1% of the purchase price. This results in you saving 1.5% in commission as well as the HST that is charged on it. As mentioned earlier this doesn’t happen often, but for what can be well over $5,000 in savings for simply hosting an open house it is well worth it.
Now the art of hosting an effective open house is something of an art. You have to be very personable and have the guests feel that you are not pressuring them, but that you are also there to answer any questions that they may have about the property. I don’t even bother with the guest registration because people do not like feeling like you are soliciting them, you have to provide value people without seeking anything in return to produce results. If you have any questions about open houses or what you can do to make your home stand out more feel free to contact me. Have a great week!