Open Houses: Are They A Good Idea?

Not all agents encourage sellers to have open houses. Open Houses allow the public to visit a home for sale at a scheduled time without an appointment.

Do I think it is a good idea? Well, that depends. If your home is in a luxury price range that very few buyers can afford, an open house will likely attract more voyeurs than buyers. They may just want to check out what a home in that price range looks like. Also, if your home is in a low traffic area and off the beaten track, it is unlikely to attract many visitors, in which case an open house may not be worth the effort or inconvenience.

For the more typical suburban home, in areas such as Washington Crossing, Newtown and Yardley, an open house can be beneficial.

Few homes are actually sold at open houses. I’ve done it, but it is rare. What I do find, however, is that buyers who are considering a house, and have seen it with an agent, will visit an open house to more thoroughly examine it. They may have questions that a listing agent can easily answer, but would have gone unanswered if they did not drop in. I have had many visitors to open houses wind up being the buyers of that house. Would they have bought it anyway? Perhaps, but maybe not.

I have also worked with buyers who live locally and want to move up to their dream house. They are loyal to me as their agent, but are very particular and become apologetic about the number of homes they ask me to show them. If they can view a property at an open house, they prefer to do so. If an open house is not scheduled for a home they wish to view, they will call me to show it to them. Would they make an appointment and eventually view the property, anyway? If it doesn’t sell quickly, they probably would view it eventually, but their ability to view it sooner, rather than later, might result in a higher sale price for the sellers.

One reason some agents give for discouraging open houses is that open houses allow people who have not been approved for mortgages to view the home. While this is true, there are not many people who so enjoy viewing homes that they do so as entertainment. Most open house visitors have some interest in homes in the area and price range they visit or they wouldn’t bother. Also, some buyers have demanding jobs and cannot look at homes during the work week. They like the low pressure opportunity to visit homes on a Sunday without an appointment. As far as security is concerned, small objects of value should be safely hidden during open houses and during any home showings.

An open house hosted by the listing agent is most desirable because the listing agent’s primary interest is to sell that house. A listing agent should know a lot about the house and be in the best position to present it positively. If at all possible, sellers should request that their listing agent host open houses themselves rather than having another agent do it. Agents, other than the listing agent, may volunteer to hold an open house for a listing agent in order to possibly sell that house. If the buyers are not interested in that house the non listing agent may have the additional opportunity to sell the buyers another property. A non listing agent does not have as great a motivation to sell your home as does a listing agent, and does not have as great a knowledge of your property. Therefore, the listing agent is your best representative at an open house.

Attractive homes in attractive neighborhoods will sell during a strong real estate market, and an agent will not have to use all the tools available to him or her to sell your house. Attractive photographs, a for sale sign and posting the property on the MLS (Multiple Listing Service.) may be all that is necessary.

If the market isn’t particularly strong, and there are a number of other homes a buyer can choose from, agents should offer sellers all the tools available to them and holding open houses is one of them. Unless sellers are uncomfortable with open houses, or will be significantly inconveniences by them, why not utilize this tool to sell your home? Homes generally sell faster and for more money if there is competition in the market. The more people who view a home, the more likely it will sell quickly and for top dollar.

Tips for Home Sellers

The best advice I can give sellers is to price their home right, declutter and leave the house during showings.

Home Pricing

Many sellers either overvalue their homes or believe they need to inflate the listing price in order to allow room for negotiations.

The eventual sale price of a home will be based on what a buyer is willing to pay for it; and, buyers these days are very knowledgeable. From internet sources, buyers have access an abundance of information about the prices of comparable homes and those that have recently sold. They may also look at many homes before making an offer. It is unlikely that they will significantly overpay for a home. Even if they inadvertently agreed to do so, buyers who require a mortgage to pay for the house, may not be able to purchase the property if the lender's appraisal comes in lower than the sale price.

When discussing listing prices with sellers, I have sometimes been told that if a buyer wants to pay significantly less than the listing price for a home, the buyer should make an offer. This may seem logical, but our culture does not require us to actively bargain for many things and most Americans are uncomfortable making low offers for homes. They either think it's a waste of time, they don't want to insult the seller, or they think the seller will be difficult to deal with.

A realistically priced home attracts more buyers and more offers than an overpriced home.

If you are unsure of the proper price for your home after your realtor shows you information on comparable sales, ask your realtor if he or she will show you homes similar to yours that are currently on the market. That way you will get a better feel for home values and the competition.

There are some homes that are difficult to price. Older, historic homes or unique, high end, custom homes sometimes fall into this category. In these situations, it might be wise to have an appraiser value the home.

Decluttering

A home should be spotlessly clean and decluttered to show well.

Some sellers are touchy when the subject of decluttering or staging is introduced. The clutter may include items they regularly use, or may include lovingly collected items. Unfortunately, these items may be distractions for buyers who need to be able to focus on the features of a home in order to evaluate it properly. Too much stuff prevents them from doing so. If they can't connect with the property and envision themselves living in it, they will generally continue shopping.

Staying in The House During Showings

I realize that in some situations it is difficult for the seller to leave the home during showings. Elderly people or parents with a napping infant cannot always jump in a car or take a walk around the neighborhood. However, if possible, sellers should vacate the property during showings.

Buyers need to be able to envision themselves in a home. If they see you there, it is an obstacle for them to do so. They may feel like they are intruding and may hesitate to open doors and cabinets to thoroughly examine the property.

Buyers should also be free to express their likes and dislikes to their agents and may not do so if you are there. Their agents can sometimes answer questions or overcome their objections. Your presence interferes with them doing so.

Conclusion

These suggestions are basic and there are many more tips of the trade a good realtor can suggest. A listing agent should work with you to assure that your home looks its' best in person and on the internet.

Deadlines Matter in Pennsylvaial Home Sale Transactions

The Standard Agreement of Sale for selling and purchasing a home in Pennsylvania is loaded with dates and timeframes to which either the buyer or seller must comply. Our contracts are written on a "time is of the essence" basis which means that deadlines are binding.

This factor comes as a surprise to many buyers who come from states in which attorneys are heavily involved in real estate transactions. Generally, contracts in those states have more flexibility with deadlines.

Some areas in which care must be taken in order to comply are:

-The deadlines for response and acceptance of offers.
-The deadline for buyers to receive a mortgage commitment and provide proof of the commitment to the seller.
-The deadline for completing inspections of the property and requesting repairs or credits.
-The deadlines for sellers to respond to requests from the buyers for repairs or credits requested by buyers.
-The deadline for providing association documents to the buyers.
-The deadline for buyers to withdraw from the sale if the association documents are not to their liking.
-The deadlines for complying with local use and occupancy requirements.

If one of the parties fails to meet the deadline in the agreement of sale, that party loses their rights under that provision of the contract. If the buyer or seller is unable to complete an action within the timeframe in the agreement of sale, he or she request an extension of time from the other party. If agreeable that extension must be in writing and signed by both parties if it is to be binding.

Learn More About Bucks County

People from out of the area frequently ask me about the characteristics of Bucks County and what there is to do here.  The topic is so broad that my response can only hit the highlights.  Here is a great website that provides considerable detail on that subject: 

http://buckscountyalive.com/events/ShowEvents.cfm?webname=bcalive

If you currently live in the area, it's a great website to learn about local services and  special events in the area.  For families with children, the current scarecrow competition at Peddlers Village is a nice activity.  

 

For art lovers, the annual juried art show at Phillips Mill showcases some of the best art currently being produced by local artists.

 

Selling an Inherited House

My husband just inherited a partial interest in a property in Massachusetts. Being a realtor, my husband and  his relatives assumed I would be heavily involved in the sale of the property which was fine by me.

The first task was to find a realtor. My relatives and I interviewed three realtors from different brokerage firms.  I shouldn't have been surprised when I found that the way realtors operate in Massachusetts differs from how we operate in Bucks County.  The reason I shouldn't have been surprised is that buyers relocating from other states to our area are frequently puzzled by the differences in how we do business. Where ever you go, you have to adjust to local practices.

All of the realtors we interviewed were good realtors and were qualified to sell the house. Choosing between them was difficult.  A major concern for us was that we do not live close by and it will be difficult for us to maintain the condition of the property. Also, there were a few issue items we needed to address before putting the house on the market. Therefore, we were looking for an agent who would "go the extra mile".

There are some agents that will take a listing and never mention to the seller that repairs might be necessary and that rooms need painting and decluttering.  That was not the type of agent we were looking for. We were willing to do these things ourselves, but we couldn't stay in MA for an extended period of time.  There were some followup issues with plumbers and landscapers that the agent we chose would have to deal with. 

We chose not to interview a high profile agent with many, many listings who hosts an ongoing radio real estate discussion.  She appears to deal in volume and we thought she would not be able to provide the attention we were seeking. 
Talk is cheap and promises are frequently broken; so, we asked for references and called them. The references provided details of their experiences with the agents, and we became comfortable with our final decision on which agent to work with.

Agents are not responsible for the security of a property, but the agent we chose lives nearby and was willing to check regularly that doors were locked, and nothing seemed amiss.  That made us more comfortable leaving the property unattended.  So far, she has exceeded our expectations.

It was important to me that out chosen agent hire a professional photographer to take home photos.  In our area, most agents do.   That was not the norm in the area of our inherited house.  One agent said she does not like to put many photos on the internet because potential buyers feel they have already seen the house and it is difficult to get them to view it in person.  That seemed crazy to me.  With 90% of buyers searching for properties on the internet, numerous high quality photos generally increase the number of showings.  We did not select that agent.

The three agents we talked to estimated the market value of the property. Their estimates varied by 5%.

Sellers should never choose an agent primarily because they provide a high estimate of the value of the property.  Estimating the value of a home is not an exact science.  Agents sometimes overestimate the value, or deliberately provide an estimate as high as can be reasonably justified so as not to disappoint the sellers.  The list price and the marketing abilities of the agent should be separate concerns.  We wound up listing the property for a lower price than our agent suggested.  We averaged the three estimates of market value and listed it at the average amount.

Being absentee owners, we are expecting more from our listing agent than she would have to do if we were living locally.  Therefore, we offered to pay her a higher commission than she had requested.  Our thinking was that we have a difficult house to sell and we are expecting a lot from the agent.  She should be compensated for the extra effort.

Showings start tomorrow.  I'm crossing my fingers that the house will sell quickly.

Preparing a Home for Sale

If you are trying to sell a home, make sure your home looks good on numerous real estate listing websites.

With 85-90% of buyers screening properties on the internet before visiting homes, the appearance of your home on various internet sites and in videos is extremely important. If you want buyers to schedule an appointment to view your home, they have to like what they see on the internet.

Occasionally, I'll see pictures on the internet that appall me.  The pictures of one home were taken during or after a party.  There were streamers in the living and dining rooms and presents and wrapping paper everywhere. Couldn't the real estate agent have come back a few days later to photograph the home when the house was neater?

I just viewed pictures of another home that was actually a very nice property.  Unfortunately for the seller, you had to look carefully at the on line pictures to realize it.  Plants were everywhere with vines winding around furniture and bookcases. I like plants, but when selling a house, "less is more".

 Some people might think, "Well they're not buying the plants", but few potential buyers take the time  to imagine what a home would look like if the decor were changed. Even though the house was priced below market value, it's not surprising  the listing expired without the home selling. 

  More subtle changes that can be made before the home is photographed are removing most items from kitchen counters, removing notes and magnets from refrigerators, closing toilet seats, hiding trash pails and placing attractive towels neatly on racks in the bathroom. Small items should be removed.  Items smaller than a football generally  look like clutter in a photograph. 

Some agents still take their own pictures rather than hiring professional photographers.  If they are skilled amateur photographers with sophisticated equipment, that's okay, but too often they are not.  Proper lighting and  wide angled lenses are necessary to capture the essence of a room.

When choosing an agent, you should discuss with them whether they will be making suggestions on preparing your home for the market.  Will the agent attend the photo shoot, or better yet, come a half hour early to make sure the property is ready for the photographer? 

Some agents work with third party professional stagers and will absorb the cost of a few hours of a stager's services. Whether a stager might help and who pays for his or her services are questions homesellers should ask agents.

 Will the agent hire a professional photographer and videographer?  If not, ask to see that agent's listings on the internet and check out whether photos are well lighted and capture representative views of rooms. The agent can't control the features of the house itself, but with attention to staging and good photography, he or she can help present your home to its' best advantage.

I usually engage a professional stager to provide suggestions on how to maximize the appeal of a home without the homeowner spending a lot of money, and I always hire a professional photographer. If a home doesn't look good on the internet, the number of buyers who will want to visit the property will be greatly reduced making it difficult to obtain the best price within a reasonable time frame. It's just good business to make sure a home looks it's best.

Bucks County Home Projects with the Highest Pay Back

According to the latest Remodeling on Cost versus Value Report, in the Philadelphia area, the home improvements that provide the highest pay back are deck additions, attic remodeling, minor kitchen remodeling, major kitchen remodeling, bath remodeling and new siding.

This isn't surprising,  I was surprised , however that new fiber cement siding led the list with a 70.6% return on investment.  This is a great product, and home buyers evidiently prefer it to new vinyl siding.

New Hope/Lambertville Restaurant Week

New Hope and Lambertville have many wonderful restaurants and during Restaurant Week, Sunday, March 18th through Friday, March 23rd, you can sample many at a reasonable price.  Participating fine dining restaurants will have a fixed price menu for $29.95 and participating casual restaurants will serve a fixed price menu for $19.95.  For further information and a list of participating restaurants, visit www.VisitNewHope.com and www.Lambertville.org. 

Upper Makefield Township's Top Realtors

Coldwell Banker Hearthside Realtors sold more homes in Upper Makefield Township in 2011 than any other Realtors.  With 28.8% of market share, Coldwell Banker Hearthside Realtors is the # 1 realtor in Upper Makefield.