The first requirement in finding a buyer for a home is to make sure the pool of potential buyers know it is on the market. For FSBO sellers, holding an open house can help to get the word out to buyers.
Open houses are very effective at helping sell real estate in many parts of the country. Real estate agents use open houses constantly to generate interest in homes [and get new clients]. Should FSBO sellers (people who are selling their own homes) also use open houses to generate buyer interest? Yes, with one caveat.
Location, Location, Location
The cliché “location, location, location” applies to more than one aspect of real estate. Not only does it address appreciation issues, it also applies to open houses.
First of all, the FSBO property needs to be located in an area where open houses work. This area tends to be in city, town and suburbs where the housing market is hot. Holding an open house usually works well where the following circumstances exist:
1. There is a good population base,
2. The home for sale can easily be seen by a lot of people,
3. There are more buyers than sellers, and
4. Properties sell rather fast in the area.
Rural areas and areas in which sales are slow don’t generally work very well. Perhaps worse, the FSBO seller can become easily disillusioned with low turnouts. If your home is in one of these areas, you’re probably better off listing it on the Internet.
An open house is a great tool for FSBOs living in a suitable location. Are you one of them?
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