Open Houses - Are They Worth It?
It is not uncommon when I am being interviewed by a seller prior to listing, to be asked if my team will do an open house. My answer is "that depends". Depends on what you may ask. Well, let's consider some of the reasons for doing an open house, but also let's examine those factors that make some more successful than others.
The origin of the open house as a marketing strategy started with new home builders back in the fifties. Near the entrance to a new urban subdivision they would set up a show home, tastefully furnished and decorated, put an office in the garage, and staff it with a sales professional several days per week. In time, Realtors felt that presenting a client's home this way would entice the buying public to look at resale properties too. It is definitely more of a challenge to conduct an open house in a structure that is already occupied. Prospective buyers are distracted by the personal taste of the seller, and sometimes find it difficult to place themselves in the home. So the first step in preparing for an open house is to ensure the entire property is clean and de-cluttered, inside and out. Essentially, the seller needs to stand at the doorway of every room and look at it as if for the first time. This applies to the basement, garage, front and back yards, too.
By far the most important detail is cleanliness. If you haven't got time to do it yourself, hire a professional. Make sure the house is free of offensive smells, particularly pets, cooking, and cigarettes. Introduce some welcoming aromas into the air - cinnamon, chocolate, or vanilla. Candles are simple and easy to use. So are room sprays, just don't over do it. Some people even roast some vanilla beans on tinfoil in the oven or boil them in water on the stove. I just hosted an open house where the client prepared a pot of fresh coffee to go along with some newly baked chocolate cookies. Everyone that came through commented on how "homey" it made them feel.
Light is your friend. Open up the blinds, and check every single light fixture. A dimly lit area makes people feel uncomfortable about maintenance. Lock up all valuables and prescription drugs - the easiest way is to place them in your trunk, because you are going to be leaving anyway. That's right, disappear. Potential buyers will feel very uncomfortable with you around, especially in smaller communities. I even had one woman go across the street to her friend's living room and together, they watched every person that visited. If you are that curious or concerned, you likely shouldn't have an open house anyway. Yes, it is true that some of the guests are there just to get decorating ideas. Others may be neighbours who have always been curious about what was inside your house. There are even those that are just trying to get an idea about value in a particularly price range; they may even own a similar home and are thinking about putting it on the market. Personally, I welcome them all. People talk, and somewhere in their social network there may be a buyer looking for just what we have to sell.
In my experience, a successful open house is one where there is time for the Realtor to have a short discussion with each guest on what they believe to be the good and not so good points of the property. All of it is instructive to the vendor for go-forward marketing and pricing. It may confirm that a room needs repainting or new floorcoverings. Do houses sell at open houses? Rarely, but that is not the point. It is a real estate version of the product focus group. If you are going to ask the question, you should be prepared to listen to the answer. Price, condition, location, presentation - all of these determine appropriate value in the mind of the buyer.
Vern McClelland is associate broker with RE/MAX of Lloydminster. If you have questions or comments on this article or other real estate matters, he can be reached at 780.808.2700 or through the McClelland Group website www.mcclelland.ca
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