Real Estate Investing

Regardless of what HGTV’s Designed To Sell would have you believe, open houses aren’t exactly known for producing offers. According to MSN Real Estate:

“They’ve always been better for agents than sellers,” says Liz Johnson, a Los Angeles real estate who noted that most open house visitors ask her for information on other property listings she is working.

Especially in this digital age, where virtual tours abound, open houses are really becoming a thing of the past. They’re still there, but in far fewer numbers. The latest data available, from 2005, shows that only 45% of home sellers considered open houses “somewhat useful.” Meanwhile, home searches via the Internet have soared over the past 12 years, standing at 77% in 2007 versus only 2% in 1995. And MSN cites Johnson as saying that only 2% to 4% of her sales come from open houses.

There are also ample security concerns in this day and age with open houses, both to person and property. So why hold one? Well, it’s good marketing when handled correctly. It’s also a great excuse to clean and fix up your house, like when you invite company over. Beyond that, your guess is as good as mine.

More than anything, you want to sell your home. You are so ready to move on, you’ve got your boxes packed and one foot out the door. Maybe you already have moved on and you’re paying two mortgages. Ouch.

Cleaning house is a good thing, but you don’t want to clean clean house. In other words, sweep away the cobwebs, pet hair and dust. Do not sweep away the furniture. In most cases, homeowners are still living in their homes when they decide to hold an open house in an effort to sell. But even if they’re not, some furniture should remain so the place looks lived in.

Firstly, if the home is completely vacant, people who visit the open house may start thinking, “How long has this been vacant? Why hasn’t it sold yet?” Secondly, if the house is completely vacant, some visitors may not be able to visualize the home’s potential. So leave a few nice pieces of furniture strategically placed to make rooms more appealing (staging), and that’s just for starters. Here are some other tips to make sure your open house gets you the results you so badly want and need.

-Make your signs highly visible. Place them at busy intersections, make them easy to read and accent them with balloons or streamers. Place plenty of signs en route to your house so visitors can’t get lost.

-Clear out the cars. Make sure plenty of parking space is available for visitors, in the driveway and on the street.

-Make your home sparkle and shine. Pay particular attention to the front porch and landscaping to maintain curb appeal. Pay attention to all doors and entryways, check corners and ceiling fans for cobwebs, and sweep, vacuum, dust, the whole nine yards. Remove all debris and clutter, inside and out. Pay extra attention to the cleanliness of your bathrooms and close all toilet lids.

-Lights! Natural light, overhead light, lamps, closet lights — turn them all on. It creates a friendlier vibe and helps visitors get a better look at the home.

-Remove personal effects. Clean off your fridge. Remove family photos from the walls and shelves. Personalize your house as little as possible. It goes back to staging; enable visitors to more easily picture themselves living in the house (kind of difficult when they’re staring at a hall picture of your family at the beach).

-Get your PR going. Didn’t you know you’re in marketing now? Distribute color brochures with a picture of your home from each of the four seasons. Include reasons buyers should buy your home and list financing options. Set out all information from the home (appraiser’s and inspector’s reports, major repairs/warranties, comparable price analysis from surrounding neighborhood, etc.) for visitors to view. Put on your happy face, meet and greet visitors and question them at the end of their tour as to what they did or did not like about the home.

Set the mood. You’ve already got the lighting. You may also opt to play soft background instrumental music on each level of the home. You should also set out refreshments for visitors and consider simmering spices on the stove or dropping a few drops of vanilla in your warm oven to create a scintillating scent throughout your home.

Above all, keep a positive, optimistic attitude about your home and the area. Happy selling!

A recent New York Sun article about two women arrested for stealing ladies’ high-end fashion accessories during open houses brings an issue front and center. That of security when trying to sell your home. Surely this is a one-off situation, but on the other hand, what if they’re just one of the few who are caught in the act.

Video surveillance footage proved to be the women’s undoing. Video surveillance is certainly a first step in home security, particularly if the homeowner is wealthy enough to possess the Louis Vuitton handbags and Tiffany bracelets that were reportedly among the two women’s loot.

Here are some other tips to protect your security during the house showing phase.

If you are a realtor, discourage open houses altogether. Realtors have been attacked and even killed at these events. Bone up on your common-sense safety tips and consider taking a self-defense class.

Thieves often work in pairs - one distracts the realtor and the other raids the house, as in the aforementioned example. Realtors may consider buddying up and showing the house with a colleague in tow. This can also protect realtors against accusations of misconduct, like sexual assault.

If you are a homeowner and decide an open house is necessary, remove all valuables and personal items, such as photographs, from the home prior to the showing.

Keep a sign-in/sign-out log of visitors.

Enlist family and friends to help watch visitors.

Keep the property well-lit, both inside and out.

Stay aware, alert and never turn your back on open house visitors.

Keep insurance policies up to date.