01Jun

#7 Open Houses

Open Houses

I want to share some general thoughts and mindsets about “Open Houses”.

In general terms, REALTORS hold “open houses” for two reasons…

1) To meet potential new clients.

I have hosted more than my share of open houses over the last 15 years or so. Many of the folks I’ve met at these open houses have become long term clients. If a REALTOR has solid sales skills and enough practical experience, open houses can be a decent way to meet new clients.

If you are a buyer who may buy a home someday and you like to attend “open houses”, enjoy them. If though, you are a serious buyer and plan to purchase a home in the next 1 – 3 months, your main focus should be selecting an experienced, professional REALTOR (Buyer Agent). Your Buyer’s Agent will assist you in developing a solid plan of action, which will include a review of your goals and time frames, property criteria, financing options, state disclosure forms and overall expectations. Buyers who are prepared and informed are always in a stronger negotiating position.

2) Their seller client’s want them to.

The property is not selling and the seller thinks an open house may generate a sale. In this case, it’s the REALTOR’s responsibility to set realistic expectations for the seller.

The likelihood of a buyer walking into an open house and actually purchasing the home is slim at best. In my experience the highest quality buyers (those that are motivated and financially qualified to buy) are scheduling a private tour of the property at their convenience with their buyer’s agent present. The majority of open house attendees are made up of curious neighbors, people out for a Sunday drive and buyers who have not yet been qualified.

I hope these mindsets provide you a background as to the pros and cons of open houses.

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