OPEN HOUSE disadvantages

There are a number of important items to keep in mind when holding an open house.

1.  Not Everyone Will Be Pre-Qualified

Not all potential buyers will be pre-qualified.  A family who is in the market for a 3 bedroom home may come across your 4 bedroom home think it beneficial to visit to learn more about the neighborhood. It isn’t uncommon for visitors to comment how nice your home is, and how they wish they could afford it…then offer that they are actually downsizing and just wanted to “check out” the area.

2. Open House Safety Considerations

It is very important to be aware of potentially unsafe visitors.  Put your kitchen knife block away and out of site. Pack your valuables. If it is obvious that no man lives in your home (no men’s clothes in the master closet), you could be giving away more information about your situation and exposing yourself to risk. Have your cell phone with you at all times and be ready to call for help. Trust your instincts. If the visitor seems suspicious in any way, don’t allow him into your home. Your agent is likely trained to understand these risks and to take necessary precautions.

3. Dual-Representation Considerations

Before you sign your listing agreement, your listing agent must ask you if you would be willing to have her represent both you and the buyer in your transaction.

One disadvantage of dual-representation is that your agent cannot fulfill all her fiduciary responsibilities to both parties. For example, she owes you complete disclosure of any information that could help your negotiating position and must keep confidential any of your information that could compromise your negotiating position. But she cannot provide complete disclosure to both parties without compromising your confidential information.

Therefore, if your agent is hosting an open house in your home and you have not agreed to dual representation, then she must share with visitors that she is representing you. Therefore, if they were interested in your home, they would need to have another agent write their offer. Some agents work on teams and will have a team member represent the buyer since the other members of the team have no information about your position. This works well because they can keep close tabs on an interested buyer.