Pros and Cons of Hosting an Open House for Your San Francisco Area Property

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Pros and Cons of Hosting an Open House

Hosting an open house has historically been an effective sales strategy in real estate. But since the advent of the Internet and the fact that many buyers do their shopping mainly online, open houses have lost some of their marketing viability. Still, some sellers and agents swear that open houses are critical for selling. Others, however, say they don’t have much value anymore. So which is it? Let’s dig in and take a look at the pros and cons of hosting an open house for your San Francisco area property.

Open House Pros

There are some definite pros and advantages to hosting an open house for your San Francisco area property, such as:

More Exposure

“Open houses accommodate more than just prospective buyers. It is important to remember that there are three people you sell a house to. First is the real estate broker community, second is the direct buyer community, and finally the bank.”

Yes, online marketing is the important today, and traditional marketing methods work, but it never hurts to have even more marketing exposure – and that’s just what an open house can do for you. “Open houses can give extra exposure through online search engines like Redfin when filtering for open houses this weekend.

Browsing Opportunities

“The internet may be the fastest way to find a home, but nothing overcomes walking through a house and seeing it first-hand. Have you ever been to an open house that does not look at all like the photos? For example when too much photoshop is done and not even the wall colors are the same? Yes, this is why potential homeowners need to go see a house before making an offer.

Besides, a considerable number of people don’t make appointments until they are really ready to buy a home. They enjoy the benefit of just attending an open house.” An interesting fact is that the National Association of Realtors found that 4% of home buyers found the home through an open house sign.

Convenience for Potential Buyers and Sellers

One big pro of an open house is that it is convenient for both potential buyers and sellers. “Open houses are often a place where a potential buyer can drop in from the street and get your house more visibility.

The planned open house on a weekend can also be convenient at times for sellers. So sellers can block off a few hours in the day and ask anyone interested to come at that time.” This way if you are working remotely on the weekdays you won’t be constantly disturbed by people walking through the house.

Open House Cons

There are also definite cons and disadvantages to an open house, such as:

Low Probability of a Sale

“Truthfully, a very small percentage of homes sell as a result of open houses. In this case, the real estate agent benefits the most by being exposed to potential clients. As mention the 2022 statistic is about 4%.

With scheduled showings you have financially vetted buyers coming through your home. With an open house, you have anyone who feels like coming in. In fact, most of the people coming through the door will not be pre-approved for a mortgage. Your house might not be anywhere close to their spending budget!”

Security Issues

Open houses also present security issues that sellers should be concerned about. Some supposed “buyers” may just be there to case your house in order to come back later when the new homeowner moves in and steal the valuables.

“Break-ins and vandalism are two things that are most likely to happen after an open house, which are an unfortunate reality. Their chances of break-ins increase if you are selling a vacant home. Open houses grant criminals the opportunity to explore a home with little to no supervision, giving them time to plan their crimes.

There are times with a vacant house that squatters might even pretend to move in because of the strong tenant rights. The squatters would do things like changing the PG&E bill and Recology bill to their name and even write up a fake lease then asking for the owner to pay them to move out. There was even a recent move out payment known as buyouts in 2022 of over $400,000.

“Believe it or not most of the theft that takes place is during the open house. When there are multiple parties are in a home at the same time, it is impossible for a real estate agent to watch everyone. It’s very easy for a criminal to come in and take something of value.

Curious Neighbors and Window Shoppers

The unfortunate truth about an open house is that most of the attendees won’t be anywhere close to serious buyers, mostly just curious neighbors and window shoppers.

“Open houses are known to attract inquisitive neighbors who basically want to see your house and compare it to their own. Lookie loos include individuals who visit open houses with no intention of purchasing the home.”

Stress

Finally, an open house often causes more stress than it is worth. It’s not easy to have all those strangers walking through your home, especially when you consider the safety and theft concerns.

A San Francisco Agent Can Help You Decide About an Open House

So is it worth it to host an open house? The short answer is . . . it depends. Much of it depends on what sales strategies are effective and viable in the local market. That’s why it’s so critical to have an experienced San Francisco agent in your corner – an agent who will know whether an open house is worth it in your market. If you’re considering hosting an open house for your San Francisco area property, contact me today at 415-830-1423.

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