Downtown LA Real Estate Agent – Will Open Houses Help Sell Your Condo or Loft in DTLA?

– Hey Downtown, it’s Kevin from KVN Agency here to talk to you about
one of the most misunderstood and frivolous marketing tools agents use to sell your home. (upbeat music) While interviewing different
agents to help sell your home, chances are you’ll come across the topic of open houses and how open houses might
benefit you as the owner in selling your home for
more money in less time. You might be promised an open house every weekend until your home sells or maybe even sometimes
during the weekdays. Unfortunately open houses don’t bring very much benefits to the
actual sale of your home and I’ve got the data to prove it. I looked at the Downtown
LA condo and loft market from May 2019 to November 2019 and picked out the top four
most “open housed” homes in that data set. And here’s what I found. These four homes had anywhere from 20 to 30 open house events held and were on the market anywhere from 100 to 200 days until they opened up escrow and finally closed. As a comparison units sold in that same exact time period only held a median count of two open houses and were on the market for about 45 days until they finally opened
up escrow and closed. But now you might be
thinking well okay Kevin, these four homes that you picked that had the most open houses, sure, they might have done ten
times more open houses, they were on the market
for five times longer, but maybe it penciled out
at the end of the day. Maybe the owners paying their principal, their interest, their property insurance, their property taxes, their HOA fees, and giving up any kind of opportunity cost for almost five times
longer than they should have ended up getting the price they wanted or maybe they got an even higher purchase price at the end of the day. Well I looked at that data too. The top four most open housed units sold for 30 to 50 thousand dollars less than their original listing price. Again, for comparison looking
at that same time frame, units sold for only $19,000 less their original asking price. So not only did it take those highly open housed homes almost
five times longer to sell, they ended up selling for twice as less as the median homes in the same market at the same time period. So if holding open houses doesn’t necessarily help with the
ultimate sale of your home, then why do agents do it? Well open houses are a great way for agents to market themselves
to your neighbors that also own and might
wanna sell in the future or to just simple window shoppers that are interested in buying a home but not quite there yet. So it’s a great way to have an opportunity to meet face to face, have a brief discussion, kinda feel each other out, plant a seed, and potentially work out a deal sometime in the future. It also creates a convenient way for agents to show your
home to multiple people without making separate appointments for each party. Now the problem with that is that you have an intention
of selling your home, you have monthly carry costs to maintain your home until you do so, and you’re not in the business of bankrolling somebody else’s marketing cost for their business. So if you’re ever interested
in selling your condo or loft in downtown LA and wanna take a very calculated and strategic approach
to marketing it for sale, reach out to me so we can put together a personalized plan that works effectively and efficiently for what
you need to accomplish because there’s nothing
wrong with doing open houses, they’re just rarely done right. Thanks for watching and I’ll catch you guys in the next video. (upbeat music)

1 comment on “Downtown LA Real Estate Agent – Will Open Houses Help Sell Your Condo or Loft in DTLA?

  1. Most open houses are hit or miss but are a good way to meet new potential buyers/sellers that are just browsing. Thanks for the video. Looking forward to more!

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