Why Are Open Houses Beneficial For Investor Fix and Flips?Nov 18, 2022
With all the changes going on in Real Estate in Arizona from new MLS regulations to interest rates and inventory on the rise, Open Houses are selling houses more than ever.
Open Houses are the one marketing tool that has been around for over 100 years and has withstood the test of time in regard to market changes, recessions, and MLS Regulations such as Clear Cooperation. In a market with high inventory and high-interest rates, Open Houses are not only necessary for listing agents to show that they are working hard for their clients, but also give buyers options that they may not have thought of before. When interest rates rise buyers now have to adjust what they can afford and therefore are forced to explore neighborhoods that they may not have been interested in before.
So then why are Open Houses so beneficial to Fix and Flips in this time of change?
Investors who purchased homes over 3 months ago to flip them at the top of a market with low inventory are now having to rethink how much money they actually can afford to put into the flip. Having a preview open house while the home is being built is a great way to find a buyer before the upgrades are already made. This is also a great way to test the list price as a coming soon listing so that once it does go active the days on market don't accumulate due to the home being overpriced. Websites like Open Houses Direct give investors a way not only to advertise their flip while it is being remodeled, but it is a great way to attract buyers that are looking at open houses. Open Houses Direct is the only website that allows a spec home to be listed directly to the public during the entire time it is being remodeled. It also does not accumulate days on market on the MLS until it is ready to sell, while still being able to get some valuable consumer feedback from potential buyers. Open Houses Direct also allows an agent to advertise this "home under construction" directly to buyers as well increasing the chance of finding their own buyer saving them thousands on a buyer's agent commission.
Fix and Flips are also great properties for new agents to hold open that are in smaller brokerages that don't have a lot of open house options and that allow them to hold open houses outside of their own brokerage. Many Fix and Flips are bought by very small one-agent brokerages and would love to have an agent reach out to them and hold their listing open while it is under construction or as soon as it is completed. This is not only a great way for the seller to get more marketing on their listing, but it is also a great way for the seller to get more buyers in the home to see the upgrades and remodels. Since buyers can't search "upgraded" or "remodeled" in their home searches, it is hard for them sometimes to find the newly remodeled homes that fit what they are looking for. Many buyers will want a "newer" home so will save a search with a certain minimum age on the home, and won't even come across a flip of an older home unless they wandered into an open house.
Open House Masters, an online and live Open House Training Program teaches this process to new agents and the agents who are taking advantage of these open house opportunities are having buyers walk in and buy the home from them. One of our recent agents with Realty Executives was holding an open house in Fountain Hills that was a Fix and Flip, on the market 12 days, never had an open house and had a buyer walk in and buy the house from her that day. Why didn't the buyer see the home 12 days ago? Who knows. But that Open House sold that home and saved the investor weeks and possibly months of having to maintain the utilities coming into the hot summer months.
We also offer our Open House Workshops across the valley several times a month via Zoom or Live In-Person. For information on attending one of our workshops go to www.openhousemasters.com/workshop.