How Useful Are Open Houses to Sell Boston Luxury Homes?June 28, 2014
The usefulness of open houses is always the big question in Boston luxury real estate. Obviously, the pulse is different in metro Boston versus the suburban market, so the question ultimately depends on location, location, location.
When there’s more real estate demand than supply, sellers and their brokers of properties priced up to $2.5M generally opt to hold off all showings until the first open house. This way, the impression is that you get more traffic and interest that could generate to possibly multiple offers and higher sale price. That has been the case in the last 12 months.
If the supply and demand are at a normal pace, then open houses usually result in very few legitimate offers. Some Boston luxury homes sellers may feel like having an open house every week will generate more buyers. This is simply not supported by statistics and market results, which show that the conversion rate from an open house is very low.
Boston luxury real estate sellers can typically expect the following at open houses:
1. CURIOUS NEIGHBORS: You always get neighbors who want to know what the house next door is selling for and /or how they compare it to their own home and get a ballpark value of their property.
2. IDEA SEEKERS:During open houses, we always get people who are renovating their homes and swing by open houses to get ideas for layout, material, renovation ideas, etc.
3. PROS: These are the people who just love going to open houses on Sundays, even if they are not looking to buy anytime soon.
4. LEISURELY BUYERS:these people find it easier to attend open houses and see several properties in one day without the pressure of making an appointment. They attend with or without their brokers (regardless of whether they have one or not) and are in no hurry to purchase real estate.
So before putting your Boston luxury real estate on an open house list, make sure to seek your broker’s advice and determine whether it will be beneficial.