The Pros and Cons of Open Houses

I'm often asked whether open houses help sell homes. Today, I will be sharing the pros and cons of this strategy so you can decide for yourself.

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Do open houses work or not? Depending on the agent that you talk to, you are going to hear a lot of different opinions. For this reason, I thought it would be a good idea to discuss some pros and cons. Let's begin with our list of cons. First, open houses provide a very low probability of a sale. This might sound pessimistic, but it's important to understand the true odds of successfully finding a buyer from hosting an open house. Secondly, there are a lot of security concerns involved. With so many potential buyers touring your home at once, it can be difficult to keep an eye on everyone. And, although I have never personally encountered such an issue, open houses can invite the potential for theft. Trying to keep track of all of them is very difficult and it is very possible that someone gets into your stuff and steals something. Although I have never personally had this issue at any of my open houses or showings, it’s not unheard of. The third drawback of hosting an open house is that it could bring out nosy neighbors. Oftentimes, the majority of people who turn out for an open house are from your own neighborhood. Rather than showing up with an interest in buying your home, they attend simply out of curiosity.

Open houses can invite the potential for theft.

On a positive note, an open house is, well, open to everybody. Anyone can drive up and walk through the house, which sometimes pulls down the barriers to engaging with a real estate agent. While it is rare that these people end up buying the house that you are selling, it does allow you potentially pick up a buyer. Agents can engage with these people and discuss what they are looking for. Open houses also offer a lot of convenience. They allow potential buyers to see your property without scheduling a showing. The final benefit I'd like to highlight is that open houses provide buyers with a more complete perspective on your home. It's one thing to see a home in photos, videos, or in a 3D virtual walkthrough, but it's something else entirely to actually visit it in-person. So, do open houses work? It depends on your goals. Open houses offer a great networking opportunity, especially for agents, but the odds of finding a buyer at such an event is lower than some may assume. If you have any additional questions or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.

How to Come out on Top in Real Estate Negotiations

Negotiations are crucial in any real estate deal, so today I’d like to share some basic tips on how to be a strong negotiator.

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Very rarely does a buyer offer every penny, let alone every term, the seller is asking for. Therefore, negotiations are a critical aspect of any real estate transaction, and knowing the basics of negotiating can make or break your success as a seller. First, don’t be offended by counteroffers. It’s easy to forget that each party in a transaction has their own distinct motive. Sellers (usually) want to make the most money they can from their home sale, while buyers are often looking to strike a bargain. But merely understanding these differences won’t necessarily improve your negotiation skills. In order to be a skilled negotiator, you will also need to be knowledgeable about the state of the market. Understanding current market conditions will be paramount to your success in any real estate negotiation scenario.

The key to negotiating is being informed, being realistic, and working with a strong agent who can help guide you on the path to your goals.

And coupling your own knowledge with that of an experienced agent will only further your chances of striking a great deal. That said, those listing while in a strong seller’s market likely won’t need to negotiate much to begin with. In a competitive market, one potential buyer may be easily replaced by another. This isn’t to say, though, that there are times where conceding to a lower offer may be advisable. Along with understanding the market, you’ve also got to understand the “big picture” of the transaction as a whole. That means thinking realistically about how your, and the buyer’s, circumstances may impact the deal. If your home is in need of several repairs, but a buyer is willing to overlook them under the condition that they offer a lower price, you may actually save yourself some money by taking that reduced amount. Ultimately, the key to negotiating is being informed, being realistic, and working with a strong agent who can help guide you on the path to your goals. If you have any other questions or would like to more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.