Hosting or attending an open house has been a topic of debate in Indian Real Estate for quite a few years now. While most buyers and sellers prefer to not include an open house in their list of agendas, the trends are slowly changing and moving towards an increased preference for hosting open houses. There are several reasons for this phenomenon.
Before we deep dive into the reasons that buyers and sellers may or may not like the idea of an open house, it is important to understand what the idea of an open house refers to. In the simplest of terms, an open house is a specific period (usually a day or two) where a house for sale is put up for viewing by prospective buyers. The timing of the open house is decided in advance and is set according to what suits both parties. The purpose of an open house is for the buyers to walk through the house, and personally experience the vibe and features that it offers. Sellers can advertise their open house day through social media, and various modes of promotion.
With changing times and due to the convenience of modern technology, open houses seem to have lost the importance that they once had. Now that the real estate market is becoming technology efficient, the debate on whether hosting open houses is of any use is more prominent than ever.
It is clear by now that while open houses are a dream for some, they are a nightmare for others. In this case, you do you! What we mean is, whether you are a buyer or a seller - it is ultimately your decision to make. If you are a buyer, reflect on whether you would make a wiser decision by physically visiting the home and weighing all your options. On the other hand, as a seller, think about whether hosting an open house will help you in attracting more prospective buyers as compared to listing your home online.
The decision is not easy and there are factors that you need to consider before deciding. As a buyer, you might be just one open house away from your dream home! Similarly, as a seller, you might be just one open house away from closing the deal you have always thought of getting for the sale of your house!
To help you reach your final decision, we have personally performed a study on the phenomenon of open houses and have made a list of factors that you should take into account. Everyone is bound to have different views on the topic, and so we have listed these factors in the form of the pros and cons of an open house.
Also Read: Renting vs Buying A House
Benefits of an Open House
Open to All
The best part is that open houses are not just limited to buyers. People who want to explore and understand how home buying works can also attend. As a buyer, you get a chance to talks to the sellers/owners personally and discuss as much as you want. As a seller, always keep in mind that open houses allow you to convince and cater to 3 types of buyers - the clients, the bank, and the real estate agents.
Real-Time Browsing
Yes, browsing online and finding properties is convenient and saves time. However, nothing can match the impact and information gained by walking through the entire house and experiencing your probable future home firsthand. You do not even have the pressure of sealing the deal there and then - you can just explore your options.
Increased Awareness
Not everything about a property may be listed on the internet. Even if everything is listed, you will never be sure till you see it with your own eyes. Attending an open house will not only give you a chance to personally meet the owner but also analyze and check out everything about the home firsthand.
Low-Pressure Environment
Open houses are affairs that are laid back and somewhat informal. Buyers would be more at ease and willing to explore if they know that there is no seller after their life trying their best to sell them the house. Most open houses go on all day long, giving the buyers to enjoy the vibe of the house and take it all in.
More Time for Preparation
Open houses are planned events. They give sellers the chance to prepare in advance and be ready for all prospective buyers. This is not the case with regular showings. Sometimes, buyers might turn up with no notice at all, or give you very little time to prepare. When you have time to plan for an open house, you can make the house look more attractive and make sure it is free of any clutter.
Also Read: Sale Deed Agreement
Drawbacks of an Open House
Relocation Challenges
This is an issue for both buyers and sellers. Think about it this way - if a buyer is planning to migrate or relocate to another city, they might not be able to spend so much money and time to just fly to another city for an open house. This may lead to the long-distance buyers not getting a fair chance against those who are available to show up for the open house.
For sellers, this is a problem because you cannot be living in your own home during the open house day/days. You will have to find another accommodation, and might also have to move furniture or important items to make the house look appealing to buyers.
Security Issues
Every prospective buyer that shows up at your house is basically a stranger who you have no prior knowledge about. Granted you may interact with them over call or text a few times before the open house, but at the end of the day, you do not know who they are. There is a high risk of your items getting stolen or your property getting vandalized. You are never really sure how many people might turn up which may lead to little or no supervision during the open house.
Ineffective
Sometimes, open houses do not turn out to be as effective as we think. Since most open houses are held on a Sunday, some people turn up just to browse the place with absolutely no intention of purchasing or enquiring about the house. Your neighbors too might attend the open house just for the sake of comparing your house to theirs. Open houses can turn out to be unproductive in a way that instead of prospective buyers showing up, you might end up catering to people who are just there for some fun and to pass time.
More Stress
People today are indeed extremely picky about their perfect dream home. An open house can put a lot of unadded pressure on sellers to make a stellar first impression on any buyer that shows up. So much stress is usually not worth the hassle and you can also end up making silly mistakes if you are preparing for the open house day under pressure. On the other hand, holding multiple open houses can send the wrong message and lead the buyers to believe that there is something wrong with the house if it needs so many open houses to find a buyer.
Less One on One Time
Personally talking to buyers is telling them your experiences and what got you to buy this home significantly increases your chances of sales and profits. This is not feasible during an open house. You cannot humanly talk to each prospective buyer that is present at the open house, and as a result, you may end up losing out.
Online Listing is Preferred
With modern technology and the attention it has gained especially after the pandemic, buyers are more comfortable in going through properties online, sometimes with the help of virtual tours. It is much more convenient, simple to navigate, and also saves a lot of time in traveling to the property and then back.
It is quite simple. All you have to do is go through each of these pointers and see whether the positives outweigh the negatives. If they do, you have your answer! If they don't, then an open house is just not the right choice for your property.
If you are still not satisfied with the list of benefits and disadvantages of an open house, let us give you a pro tip! You can seek advice from a professional real estate agent and then take your decision. Feel free to approach your real estate provider with your final list of pros and cons, and try to understand a professional perspective - you never know, they may end up changing your mind!
Just because everyone is hosting or not hosting an open house, does not mean you have to follow in their footsteps. Every home and every seller is unique, so the decision is ultimately yours to take!