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A new year in real estate has begun.
After witnessing 2017’s growth and
activity, we are all interested to see what
2018 will bring. In these early months,
the topic of Open Houses arises. Open
Houses, once considered a necessity for
buyers and sellers, have become increas-
ingly controversial. Ask any real estate
professional, buyer, or seller, and they
will each have a different opinion and
anecdote to illustrate their experience.
As a real estate agent, I have hosted
and attended hundreds of Open Houses.
I have found that most visitors fall into
two categories. First are the nosy neigh-
bors, who want to see what your home
looks like and what it may be worth com-
pared to their own. They often give false
information to hide their true motive for
the visit. The second most frequent visi-
tors are beginner house-hunters, who
have yet to determine exactly what they
want and can afford. While both cate-
gories include visitors who have a legiti-
mate reason to be there and much to
learn from the experience, neither are
likely to be the buyers for the home. The
best buyers for a home are already
engaged in the process, financially pre-
pared, and have seen an appropriate
cross-section of available homes for com-
parison. The ideal buyers don’t simply
wander in; they are more likely to be
working with a professional agent, who
will schedule a private showing. Showing
by appointment offers buyers the chance
to concentrate on the home without the
distractions of other people, competing
agendas, or time pressure. They are able
to discuss ideas and make comments
without the fear of being overheard by
strangers. It’s almost impossible to focus
on evaluating a home unless you are
viewing it privately, with your own trust-
ed real estate agent for advice.
Who benefits from an Open House?
Visitors, as explained above, can gain
valuable information that will help them
in their own future real estate transac-
tions. An Open House is a great place to
interview a real estate agent, but a rec-
ommendation from a past client is as
valuable as an in-person first impression.
A strong professional relationship can be
forged and strengthened based on infor-
mation shared between consumers and
the Open House hosts. Therefore, agents
who are honest communicators can ben-
efit by meeting new clients at an Open
House. Sellers do not typically benefit
directly from the foot-traffic generated
by Open Houses. According to Mark
Ferguson, a successful investor, “I put
the house up for sale, and 90 percent of
the time another Realtor will sell the
house for me. Open houses rarely sell the
houses they are staged in.” Online mar-
keting, quality photos, and visits sched-
uled via cooperating agents are far more
successful in leading to a home sale.
Though we all know someone who
claims to have bought their home after
touring an Open House, this is the excep-
tion rather than the rule.
Real estate television has changed the
way buyers and sellers feel about the
Open House process. After watching
home-search or surprise-reveal renova-
tion programs, consumers can’t resist
imagining themselves in the on-camera
situation. Buyers wonder if their com-
ments and observations are being “lis-
tened to” by an audience (whether real
or imagined) of competing bidders,
agents, and Sellers. Home owners worry
about security and privacy when there is
the possibility of unaccompanied strangers
and/or multiple parties touring the home
at once. Sellers feel judged when their
homes are being scrutinized; sometimes
it’s better not to know exactly what buy-
ers are thinking or have said under pres-
sure. The intermediary influence of a pro-
fessional, in deciding when and how to
deliver feedback, increases the value and
effectiveness of such opinions.
Sellers are wise to consult with their
real estate agent in deciding whether an
Open House is a favorable part of the
marketing plan for their home. Factors
for consideration include personal com-
fort, timing, property condition, and the
overall market climate. As buyers, visiting
Open Houses may be a useful learning
experience, but without professional
guidance the value is unpredictable.
Touring homes privately, by appointment,
is an arrangement that requires account-
ability and ultimately benefits all parties.
OPEN HOUSES
By: Johanna Wiseman
See ad on page 3
PAGE 20
home
&
design