Open House Myths – Concerns for Simi Valley Home Sellers

The open house maybe the most misunderstood practice in home selling business.  Simi Valley Home Sellers generally have no idea the risks they have signed themselves up for when demanding or requesting their listing agent provide open houses as part of the marketing plan.  Some may say

“Did Ted just say there are a risks to having an Open house?” 

Yes I did!

#1 – Just about every real estate training manual I have seen in the real estate business clearly states that the open house is really not about selling the house you have open, but rather it is about gaining new clients.  Sure there is always going to be that one real estate agent who says they have sold the house they held open, but in statistical numbers it is a very rare occasion that this is happening.  Real estate agents are trained that the people who visit open houses seldom buy that home, but might make good prospects for other homes.  So while you think your agent is extolling the virtues of your Simi Valley home, in reality the buyer that came to visit is in your home learning about other homes that better match their needs, because the buyer realized when they got to your home, your home did not fit their needs.

#2 -According to a friend of mine who wrote the article titled selling your home fast in los angeles painlessly, the people who visit your home through an open house are the lowest quality prospect you can possibly go after to purchase your home. What do I mean by lowest quality?  If you rank all the potential buyers for your Simi Valley home,  people that stumble in after following the open house sign trail would be a ‘D’ or ‘F’ rating and buyers that come to your house with a Real Estate Agent would be rated as a ‘A’ prospect.  Why?  Lets look at the following:

• Those that come off the street have no idea if the house at the end of the open house sign trail is going to match what they are looking for in size, bedroom, bath count, price, etc. Most of the time your house does not.
• Those that come off the street may not be qualified to get a loan to make a purchase, yet they are shopping for a home blindly, traveling solo they are not at the point to be able to write an offer if they see a home they like.
• Those that come off the street may not be interested in buying a home, but are either nosy people or even people with criminal intent.  Prescription drugs are a big target for these kinds of thieves, some real estate agents have had purses, computers, cell phones stolen while they hold open houses.  There have been reports of real estate agents how have been physically assaulted and even raped at open houses.  Remember, you the home owner, are allowing signs pointing to your home, to attract anyone one off the street in your home.  You would not do this by yourself, real estate agents are not trained security experts nor law enforcement.  Professional thieves and con artists can gain the upper hand in an open house situation faster than you can imagine.

Lets look at the difference in buyers that come to your home with a real estate agent.

• First and foremost, these buyers are much further along in the decision process and the commitment process.  By the time they have engaged representation, they are ready to write an offer when they view the home that meets their needs.
• Their finances have been most likely pre-qualified. A good seasoned real estate agent is not going to spend time showing homes to people who cannot get a loan or have the proper finances to make a purchase.
• A real estate agent’s pay only comes from a commission paid when the sale of a house is finalized.  The real estate agent is highly  motivated to get qualified buyers into homes that those buyers will act on and write offers.
• The real estate agent and the buyer have “narrowed down” homes the buyer wants to see on a short list, meaning your home is now a much higher candidate for the buyer.

Yes you can have an open house. Yes a buyer for your home might show up at your open house, but when looking at the statistics on how often this happen, you really need to weigh out the risks.  Do you want to open your house like a local free public attraction, all in a very low percentage effort to attract a buyer?  If your answer is yes, hide your medications, valuables, portable electronics and understand if your open house is visited by a profession thief, they know all the common hiding places and if they are determined, they will succeed.

Think even further that many pictures of your home have been syndicated across many many websites.  There is a ton of information about your home posted on the internet when you market it for sale.  It does not take much for those people how are up to no good to utilize this information and plan their next caper.  So weigh out the risk before you plan your next open house. Ask yourself if you want focus efforts into attracting agents with well qualified buyers or total strangers who may or may not be qualified or ready to make a purchase.