Reconsidering the Open House Strategy

I ran across this video about an open house frenzy in California.  In Eastern Connecticut we cannot imagine 50 calls previous to the open house, 50 to 100 attendees and between 20 and 30 offers on a property, some sight unseen.  I guess if we had that kind of response we too would jump on the open house band wagon.
Speaking of open houses, in general I am not a fan. I see open houses in the Mansfield & Windham area  occasionally but unfortunately I think it is often to appease a seller who thinks that if their agent isn’t there on Sunday with coffee and cookies they are not fulfilling their fiduciary responsibility to market their home.

At Home Selling Team we run a seasonal Sunday Tour of Homes based on what we have for inventory and how the market is behaving. Essentially it is a 5-10 minute open house with the opportunity to come back for a second look if the buyer has further interest.

Here is what I have observed in the local open house strategy:

The home has typically been on the market for about 60 days and has received few if any showings, no offers, even low ones, and few inquiries in general.  99% of the time this is because the home is priced at a price that the market simply will not bear – no open house can cure this problem. 

Instead of giving the seller the bad news, “Your price is too high,” the agent will acquiesce, buy some balloons and stick a sign in the ground at the end of the driveway and wait for the neighbors, hostile ex-spouses or other interested relatives to show up. These open house visitors are usually indignant that they have to sign in for security purposes and feel that they should be able to remain anonymous and roam free through the home unfettered by the real estate agent. 

Also worth noting is another trend where people attending an open house are looking for unsecured prescription drugs, jewelry or money. There also can be a siginficant risk for agents to be attacked at an open house where you are effectively advertising a meet & greet in an otherwise empy home. Not effective. Not safe.

If you are putting your home on the market and if an open house really appeals to you, I suggest that you do your open house the first weekend your home hits the market.

It is new- not old, it is fresh inventory – not stale, and it has just arrived in the email boxes of potential buyers that are subscribing to updates in your market area and price range.  An open house launch can also create a sense of urgency and may produce an offer very quickly.  And if not, no matter, you still have 60 days until your next one.