For the most part, owners generally want to conduct open for inspections and for most properties that are listed for sale, an open home is exactly what is needed. Though there are pros and cons to having open homes that you need to consider.
So, here’s how they work for you. Opens are great when a property is priced competitively and your chances of pulling a decent crowd are high. The reason why that’s important is because if you have potential purchasers inspecting your property among plenty of other buyers, interested or not, it really enforce our level of authority as an agent when we’re asked what the interest level of the property is. Being an agent, we may have a reputation that proceeds us, so as far as the trust factor goes when we get asked questions by buyers with the expectation of a truthful answer, we really don’t sit on the top of the list. Therefore, we need proof. If there are multiple groups inspecting a property, it gives more validity and authority to me as an agent when I tell people we have interest in a property. They can see that and don’t have to take my word for it and it’s of the utmost importance that we remain the authority in the negotiation.
On the other hand, if a property is being pitched a little higher than market value and there is a high possibility that you will only attract minimal to no potential buyers to your open, this can very much work against you. If a buyer is standing on their own or with one other potential client and ask us if there’s interest. Well, it doesn’t really matter what we say, they have already assumed that there isn’t and they have a better chance of getting a bargain by negotiating the seller down in price. In these instances, we are better off having all inspections strictly by appointment. That still leaves us with an element of mystery of whether there are other buyers interested and we can work the buyer into a competitive negotiation.
The only other time I wouldn’t conduct an open is when a house is too large. Firstly, it’s a security problem and things may get stolen (though in over a decade selling property, I’ve never had anything stolen). Secondly, it spreads people out too much and the impact of competition isn’t as great when buyers aren’t rubbing shoulders while inspecting a property. Finally, a house that is large needs to be shown with time on your side, in a lot of cases people cannot get a grasp on how a property feels to them in a half hour inspection. They really need to be walked through without the pressures of being rushed out, they need to be sold every feature of a property and how it works for them and they need the time to appreciate what they are viewing and ultimately fall in love with it.
On a final note, for strategic purposes, only conduct one open a week. By forcing all your buyers to come to one open rather than splitting them up over two or three, you increase the possibility of larger crowds in your property and more interest. Something that is still relevant today is interest broods interest, people always want what others want and fight for what they can’t have.