Technology has transformed the housing market by digitizing almost every aspect of the home buying process.
In 2019, Americans are able to sell, purchase and finance a property all from the comfort of their own home.
However, despite these technological advancements, data suggests that traditional selling methods might still have the upper hand.
According to a recent analysis by Redfin, American home sellers are now making $9,046 more on average just by hosting open houses.
“Holding an open house is an efficient way for sellers to get more eyes on a home, and a bigger pool of potential buyers can help lead to a higher ultimate sale price,” Redfin Chief Economist Daryl Fairweather said. “In many areas, homes that are already primed for competition tend to be the ones with open houses because the listing agent knows it will attract a lot of attention and wants to set up a convenient way for multiple potential buyers to pop in at once instead of making several appointments for private tours.”
One of these highly competitive markets includes San Francisco, where homes with open houses sold for 7.9% more than their counterparts.
Redfin Agent Miriam Westberg said this is because San Francisco's real estate culture is dominated by open houses.
“The majority of my clients attend open houses because they know it’s their best chance to see a competitive property or multiple properties on the same day,” Westberg said. “If a home in the area doesn’t have an open house, it’s often because it’s either owner-occupied or tenant-occupied. Those homes tend to sell for a bit less than comparable homes with open houses because they’re difficult to show and don’t get as much traffic or as many offers.”
While a larger payoff might be incentive enough for some homeowners, Redfin’s data notes open houses are also correlated with faster sales.
In Miami’s metro, homes that have an open house during the first week on the market typically go under contract within 27 days, compared with 38 days for those without an open house.
Additionally, homes in the Miami area with an open house during week one sold for 1.2% more relative to their list price than homes that sold with no open house, according to Redfin.
“Open houses can help homes sell faster,” Redfin Agent Jessica Johnson said. “When homebuyers see other people at an open house, it can motivate them to place an offer more quickly than they otherwise would.”
NOTE: This analysis is based on home listing data from 2018. Only open houses held within one week of a home going on the market and homes with no open house at all were included in the report, according to Redfin.
Courtesy: HousingWire Newsletter
