The open house – still important when selling a home

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Have you wondered how the open house tradition evolved? Earlier this year, Realtor.com detailed its history. Apparently, the first recorded open house was over one hundred years ago and described as “open for inspection.”  The inspection was held over days or weeks allowing home buyers to inspect the home’s structure, layout, and features. It wasn’t until the 1950’s when the more familiar format and term “open house” took hold (Rachel Stults, A Brief History of Opening Our Homes to Total Strangers (aka the Open House); realtor.com; April 21st, 2015).

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from HouseHunt.com

Transformation of the open house can be gauged along with licensing, sales and cultural trends. If you were selling your home one hundred years ago, having your home open to buyers for a week or two made sense because it allowed prospects to see what they were getting. In a time before licensed home inspectors, the internet and virtual tours; a week of inspection was an important selling tool.

Home buyers are once again taking the time to “inspect” homes through multiple visits; usually initiated at the open house. The internet has empowered buyers to be proactive, giving them the means to search on their own; often visiting open houses without an agent. Seeing a home virtually is just the first step, visiting the home logically follows. The visits give buyers the ability to view the home with their own eyes (not the camera’s); as well as being able to make the all important emotional connection – deciding if they can live in the home.

Regardless of what you hear about the effectiveness of the open house, it’s still an important sales tool. And if you’re planning on having one or several, there are a few important points to keep in mind:

Advertise.  You could say… “if you advertise they will come.” Most open house advertisements have moved away from the Sunday classified section to online real estate portals. I can tell you that when I ask visitors how they found out about the open house, the overwhelming answer is that they saw it advertised online. When setting up your online open house announcement, make sure that there is an enticing and brief description of the home to grab the buyer’s attention.

Make sure the advertised times for your open are accurate. More importantly, confirm your agent is at the home on time, if not early. A common faux-pas is not having anyone at the home when the open house is planned to begin. And unfortunately, a buyer left waiting to get in will more than not move on to the next open house.

Prepare. Organizing an open house offers the opportunity for you to focus on the details. No matter how much de-cluttering you have undertaken prior to listing your home, you can always tidy-up. Additionally, pay close attention to your home’s curb appeal, as it can be the difference between buyers entering the home or driving on.

Finally, make sure your agent is working the open house to sell your home. Agents know that many buyers visit open houses without an agent. And in the past, many agents advocated to have the opens not for the seller’s sake, but instead to build their buyer pipeline. Knowing this, the Maryland Real Estate Commission reminded listing agents a few years ago of their duty to their seller, clarifying their role at the open house.

By Dan Krell
Copyright © 2015

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Preparing an open house for welcome and unwelcome visitors

In a time when home buyers and their agents are increasingly using online services to search for homes, some question the value of holding an open house. However, holding an open house provides the opportunity for both welcome and unwelcome visitors to experience what your home has to offer.

Of course, the wanted visitors include home buyers and their real estate agents. The National Association of Realtors® Profile of Home Buyers and Sellers 2010 (NAR, Washington, DC; Realtor.org) indicates that about 10% of home buyers in 2010 reported finding their home via an open house visit. And although the number of home buyers finding their home by means of visiting open houses has decreased from the 16% that reported in 2004, many home buyers reported that they use open houses as a means of information gathering. Of those home buyers who used the internet for their home search, 47% also visited open houses as an additional source of information.

Although preparing for an open house should not be too much work, since most of your preparation should have been completed prior to listing your home, time should be taken to offer your visitors a memorable home. No matter how much de-cluttering you have undertaken prior to listing your home, getting ready for an open house offers the opportunity to focus on the details.

Attention to the home’s curb appeal can make the difference between having home buyers driving by and having them stop to come inside. No amount of advertising can overcome a home with poor curb appeal; remember that your home’s exterior and yard is like the opening chapter of a story that should be engaging to home buyers.

When cleaning your home, look for trip hazards. Trip hazards can turn the promise of an open house into a potential disaster. Of course, visitors should be informed of home features that present trip hazards, such as irregular stairs and uneven floors. However, other trip hazards are sometimes created by the virtue of an open house: think twice before asking visitors to remove their shoes, as walking around in socks can be quite slippery on bare floors and stairs; new rugs should be secured so they do not slip from under your visitors’ feet.

Certainly cleaning and dusting the home is a given; but since home buyers often find strong odors a turn-off, consideration should be given to odors and their sources. Odors that emanate from such sources as pets, cooking, and even your cologne and perfumes can often linger throughout the day- and sometimes trigger an allergic reaction from a home buyer.

Now to the unwanted traffic: Besides cleaning your home, take precautions to protect your valuables and prescription medications. Every year there seems to be an outbreak of open house thievery somewhere in the country. Think twice before showing off your new flat screen or computer, or laying out the fine china for staging. Thieves can easily visit an open house to not only see what they can fit into their pockets, but to “take inventory” of your valuables for a later score when no one is home. And it’s not always jewelry and cash- some thieves look for prescription drugs that are easily pocketed during their visit.

Your Realtor® can assist you in making your open house successful; prepare equally for the welcome and unwelcomed guests.

by Dan Krell
© 2011

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

Does your agent have a duty to you – or their pocketbook during an open house?

I received an email from my local association indicating that there is a revised disclosure form. This is not unusual, as forms are often revised for various reasons. Often times, new forms or revisions to existing forms are often made when there are changes to real estate laws and practice thereof; or when issues arise in specific practice areas (either because of a significant lawsuit or someone received too many complaints). This time, however, the Maryland Real Estate Commission (MREC) most likely updated and clarified the agency relationship form “Understanding Whom Real Estate Agents Represent” because of complaints of agents’ behaviors (regarding their agency relationship) while conducting open houses.

The purpose of these “agency” forms are to protect consumers as well as inform of an agent’s and broker’s duty to their client. I’m not an attorney, however, I believe that the agency disclosure also provides the agent a reminder of their duty. To be fair, many brokers and agents understand their duties and their commitment to their clients. However, there are some that do not; and unfortunately, I cannot say that they know who they are.

An “agency relationship” is defined by COMAR (Title 17 – Real Estate Brokers) §17-528 as a “relationship in which a licensee acts for or represents another person with the person’s authority in a residential real estate transaction.” Further, §17-530 states; “A licensee who participates in a residential real estate transaction as a seller’s agent, buyer’s agent, or as a cooperating agent shall disclose in writing that the licensee represents the seller or lessor or the buyer or lessee.”

It appears that there are reports of agents who conduct open houses for the purpose of steering buyers their way by making disparaging remarks about the home, as well as exhibiting other subtle behaviors that may be construed as inappropriate. An explanatory letter from the MREC describes such behaviors and clarifies how agents should conduct themselves during an open house. Besides reports of agents sitting with their laptops at the ready to show buyers other homes; according to the letter, some agents have openly admitted that their goal was to recruit home buyers while sitting an open house for a listing agent. According to the MREC, this can be a violation of the agent’s duty of loyalty to the seller; “any agent affiliated with the listing broker who holds an open house is there exclusively as the seller’s agent.”

To further clarify the agency relationship, the revised “Understand Whom Agents Represent” form states “If you are viewing a property listed by the company with whom the agent accompanying you is affiliated, and you have not signed a ‘Consent for Dual Agency’ form, that agent is representing the seller.” To attempt to circumvent this issue, some agents have had their seller clients sign a waiver of agency for open houses. However, the MREC makes it clear that an “agency waiver” is prohibited under Maryland law.

The MREC states that although it is improper to solicit a buyer while sitting in an open house, it is acceptable for agents who conducted the open house for a listing agent to contact those unrepresented home buyers another time and place. The MREC website (www.dllr.state.md.us/license/mrec) provides additional consumer real estate related information, including agency relationships.

By Dan Krell
Copyright © 2011

Comments are welcome. This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.