The Skinny on Open Houses: Hint…It is not to Sell Houses!
The real-estate business is one of the most fascinating yet mysterious aspects of the market today. Open houses are a time-old tradition that enables customers and interested parties to tour a home or a housing community. While many sellers believe that the purpose of open houses is to sell homes, this is actually far from the truth. Real Estate agents have the secret and skinny behind open houses.
Well, the actual reason that real estate agents visit or host open houses is to recruit clients. If you are unlisted or are in the market to buy a home, the first place to begin your hands-on training is through open houses. Imagine being a fresh agent who wants to build a portfolio. Clients will love someone who knows those untold secrets about the beauty of a neighborhood and offer knowledgeable tips about the real estate market. It is the best place for agents to market themselves and potentially build their real estate rapport. Open houses are the time to connect and network with clients and a potential employer (the agent handling the property) over cakes and juice. It has a personal and more interactive feel to it.
The common perception is that most new agents will be on the prowl far more than established or successful listing agents. However, more buyers that visit open houses are usually represented. Agencies will use new agents to learn more about the neighborhood, the buyers and the real estate market in general so as to keep the unregistered buyer interested and roped in. Open houses, while still common, are not the top option for potential buyers to find a home to purchase. The internet has become every potential homeowner’s dream because you can simply search for real estate listings. It is possible to check for sites, virtual tours of the homes, furnished homes as well as floor plans. It is basically visiting open houses without physically being present. In fact, it is easier to choose the crème of the crop by sifting through online listings to determine which ones are worth visiting.
The statistics on home purchases have proven that open houses may be a waste of time. The National Association of Realtors noted that only 9% of those who visited open houses purchased those homes, a drop from 16% 10 years prior. In the same report released in 2014, the number of open house visits has dropped from 2004’s 51% to last year’s 44%. These are drastic drops which are scheduled to fall further as technology progresses. The only thing that is missing in online real estate searches is the personal and human interaction of learning about a home. However, it does save on time and energy visiting multiple open houses. Back then, you required a real estate license to get a hold of listings. In addition, it was a quick and free way to have a sneak peek at available homes as well as learn more about a given community.
In the home buying scheme of things nowadays, open house visits are further down the line. After searching for a home and expressing interest in purchasing one, the next step is meeting an agent. The next process is getting pre-approved in order to purchase of place mortgage on the home of choice. This is then followed by the open houses on the homes settled upon by the buyer. The same National Association of Realtors has discovered that 43% of potential buyers begin their first home search online. This is where they get to learn about the locality, nearby amenities, school district and costs of the homes. This gives buyers more access to information as compared to 10 years ago. Upcoming communities and home constructions have now become a trap for inexperienced home buyers because of the décor, home finishes and fancy designs. The problem is that these may sometimes be sub-standard.
All in all, open houses are a dying tradition but it is not something to be sad about. It is simply opening up avenues that real estate can change, progress and advance their way of handing business. The great thing about this is that with changes and advances to how the real estate industry does things, it means that they will find quicker and innovative ways that they can make the buyers’ work easier. This will give rise to healthy competition for buyers or clients and could even make home buying a cheaper affair.
If you would like more information on the Home Buying process, click the link here for my FREE Home Buyer’s Guide. For more information you can also contact me directly to schedule a no obligation consultation. During the consultation, I will provide you with free advice and an honest overview of what to expect when buying a home. Just fill out the form below and I’ll be sure to contact you to schedule the consultation.