The truth about open houses

Do open houses work?

Yes and no.  

Nice and clear, right?  Okay, let me rephrase the question:

Will an open house sell your house?

They certainly can, but realistically it's not very likely.

An open house is open to all, so there is no commitment or real connection to an agent required.  Anyone can show up, and there is a feeling of anonymity.  Because of this open-ended nature of open house attendance, you get a lot of nosy neighbours, as well as "tire-kickers" who may be serious about buying but are still some months away from being ready and are just checking out the market.

So why do agents do open houses?   Good question.  

Real estate agents are still happy to do them because they do work -- for them. 

They can be a great business-building opportunity for the real estate agent.  While some visitors may just be Fred down the street coming to see how the Smiths are living, many people coming through open houses are legitimate buyers, whether current or in the near future.  If these buyers are not working with a buyers' agent, it is an opportunity for the listing agent doing the open house to connect with them and possibly become their agent, whether they buy your particular house or not. *

Of course, while they do sometimes provide a better opportunity for the agent to find new buyer clients than to actually sell your house, they do have the potential to get a lot of potential buyers through in a short and convenient time span.  Personally, I won't push open houses on clients who dislike them, but I am also quite willing to invest the time & effort if they would like me to do one.  As the old saying goes, it doesn't hurt to try.

* As a little side-note:  I remember one company suggesting in their marketing materials that such cross-selling is a negative of the traditional real estate industry.  Please understand that I am not saying that here. In fact, I would suggest such cross-selling, whether from an open house or an email through the MLS® system, is actually a huge benefit of being listed with a full service agent.  While your agent may show your house and sell the buyer a different property up the street, the agent up the street may also show their listing but sell your property instead.  The MLS® system gives you a huge sales force consisting of all local real estate agents in the field. 

Selling difficult or "impossible" properties

Whenever possible, the ideal situation is for the seller to fix any problems that may be outstanding on a property. But there are times when it may not be financially feasible for any number of reasons. It is not the end of the world to list a property for sale with issues, but there are two important things a seller must do if they expect to sell at a proper price and in a reasonable length of time.

First is to make sure you are pricing appropriately for the condition of the property. If a buyer can get a similar property at the same price with absolutely no work to do, you’re going to have a hard time competing in the marketplace. Buyers will expect a lower price if they’re going to have to put in time and money to fix things up, especially if they’re significant items like an old roof or leaky basement.

The second very important step, which actually helps with pricing, is to get written quotes from qualified contractors for any major issues. But besides giving you solid numbers to use for deductions from asking price, a written quote will give comfort to buyers and remove the fear of the unknown – what a seller may “know” to be a $2000 repair can easily be blown up into a $20,000 (or more) repair in the buyers’ minds. Written quotes remove the question marks and replace them with solid figures.

RAHB AREA SALES INCREASE AS PRICES MODERATE IN AUGUST

Hamilton, ON (September 2, 2022) – The REALTORS® Association of Hamilton-Burlington (RAHB) reported 906 sales of residential properties within the RAHB market area through the Multiple Listing Service® (MLS®) System in August 2022. The number of sales were up by 11.7 per cent from July 2022 and down by 24.2 per cent compared to August 2021. There were 1,641 new listings in August 2022, which was down 8 per cent from July 2022, and compared to August 2021, there was an increase in listings of 20 per cent. The average sale price for residential properties across the RAHB market area was $858,405, down 2.3 per cent from July 2022, and up 2 per cent compared to August 2021. There were 2.6 months of inventory* in August 2022 compared to 3.1 months in July 2022.

[ Read the full release and stats ]

*Months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Improve your indoor air quality with plants

 According to a number of studies, plants in your house not only add a bit of life and decoration, but can also improve your indoor air quality depending on your selections.  Most plants have some air filtering capacity, removing toxins from the air as they 'breathe' from day to day.

Doing some reading online, lists of best plants differ according to research and writer, but there are a few "usual suspects" that show up on many, if not all, lists.

1. Spathiphyllum (Peace Lily, pictured)
This plant shows up on most lists I have seen, as a tough and hardy plant with numerous air filtering qualities, credited with removing alcohols, acetone, industrial solvent trichloroethylene, benzene (an ingredient used to make dyes, lubricants, rubbers, and detergents), and formaldehyde.

2. Dracaena
Another low maintenance plant and regular on the lists, the Dracaena is said to be very efficient at removing formaldehyde from the air in your home, as well as other VOCs, including benzene, trichloroethylene, and xylene. One important note is that you should keep it out of reach of any pets, as it can be toxic to animals when ingested.

3. Bamboo Palm
The bamboo palm is another plant said to have a high ability to remove formaldehyde from the air, as well as benzene and trichloroethylene.

4. Snake Plant
According to NASA, the snake plant is one of the best houseplants for absorbing airborne toxins, including formaldehyde, nitrogen oxide, benzene, xylene and trichloroethylene. (You'll notice there are some regulars on the list of household toxins, too)  The snake plant is also said to be one of the higher producers of oxygen during the night.

5. Hedera helix (English Ivy)
English Ivy is another popular plant that helps filter toxins in your home's air.  It is said to be effective for benzene, formaldehyde, xylene and toluene, and other studies have indicated that English Ivy may help reduce mould in your home.

If you'd like to read more about plants that can help with indoor air quality, here are a few links to get you started:

[Healthy houseplants]

[The Top 10 Plants for Removing Indoor Toxins]

[9 Air-Cleaning Houseplants That Are Almost Impossible to Kill]

When you need a miracle to sell your house...

Hopefully you don't literally need a miracle to sell your house, but maybe just a bit of saintly help?  Well, then I've got good news for you: there's a long standing tradition of invoking St Joseph to help sell a property (yes, that St. Joseph).

The tradition seems to have began with communities of nuns burying a St Joseph medallion on a property they hoped to buy for a convent.  Over time the medal was replaced with little statues, and then at some point transferred to the sale side of a property transaction rather than the purchase. 

The tradition's specifics vary a bit depending on who you ask, but essentially you take a small statue of St. Joseph and bury it on the property until it sells and then dig it up and take it with you.  Some say it should be in the backyard or that the location doesn't matter, others say beside the real estate sign.  Likewise, some say upside down and others say horizontally with the head - and thus the praying hands of St Joseph - pointing toward the house.  The only thing that is consistent is that it should be buried.

If you want to try this next time you're selling a property,  you should be able to easily find a statue or even a "St Joseph Home Selling Kit" in a gift shop or online at someplace like Amazon.

Not surprisingly, there are also lots of [other superstitions related to the house], including some that people lean on when it's time to sell or buy - things like numbers in the address, days of the week to close, and so on.

Have you ever used the St Joseph statue when selling?  Are there any other traditions that you have used?  Or is it all just hokey nonsense? I'd love to hear from you in the comments below.

Preventing water problems in your basement

No one wants to find water in their basement.  This can mean expensive foundation repairs are needed, or at least basement waterproofing by professionals (also expensive).

But there are a couple of things homeowners can do to help prevent water in the basement.

Downspouts

The first thing to do is to make sure all your downspouts are working properly and taking the water away from the house.  If you're missing the bottom piece on any downspouts and dropping water directly beside the foundation, you're dramatically increasing your chances of water getting into the basement. Even a new foundation wall on a brand new house runs the risk of water penetration if you put enough water down beside it.  Downspouts should have the curved piece at the end and enough extension to take the water out and away from the house.

This includes if you have an older house that has downspouts going into the ground.  These downspouts will be tied into the weeping tile, which is a drain system around the base of the foundation.  The idea is that the water will go out to the storm drain.  The biggest problem with this is that old weeping tiles were made of clay and are prone to break-down over time.  This means a weak spot in the system that could allow water into the basement rather than taking it away.  This is why home inspectors will always note downspouts going below ground and recommend disconnecting them and extending them away from the house.  (and of course plugging the pipe going down)

Grading 

The second thing to look at is grading.  The ground around the home should have a gentle slope away from the house.  If there are any spots where the ground runs down toward the wall or there's a hole or dip in the ground, these are places where water could easily pool and overwhelm the foundation's drainage system, regardless of the age of the home.  I've been in a brand new multi-million dollar home where they had left a huge hole in the ground beside the foundation and there was a rather significant leak when I showed it the day after a rainstorm.

The fix is relatively simple - get dirt and make sure the ground slopes down away from the house, without any dips that would allow water to collect beside the house.  It doesn't have to be a noticeably sharp 'ramp', just a gentle and consistent slope down and away.  There are varying guides, but it should be about 6 inches for the first 10 feet where possible or roughly an inch per foot.  A good home inspector should also be able to identify these potentially problematic areas and give some guidance.

Taking care of downspouts and grading may not prevent all chances of a wet basement, but many cases of basement dampness or leaks will be prevented by taking care of these two areas.

Can a real estate professional help you find a place to rent?

You might be surprised, but yes.  A real estate professional can show you any rental property or unit listed in the local MLS® system and help to write an offer to lease it and typically get paid by the landlord via the listing brokerage, just like when someone is buying a home.  I actually helped a family member with one of these recently.

The main limitation is that the majority of MLS® listings are for sale, not for rent.  So our selection might be somewhat limited, compared to properties advertised directly by landlords. 

And landlords who are leasing the property themselves are also significantly less inclined to pay any commission than someone selling, so if you want a professional's help on one of these, you might have to pay your agent's commission yourself.  A typical commission is half a month's rent.

Many real estate agents don't actively pursue rental business, and some simply refuse it, because the work involved is the same as a property sale (if not more sometimes) for significantly less money.  It sounds cold, but it's true. 

Personally, I'm willing to work with rental clients, so if you know someone who's looking to rent, I'd be happy to have a conversation with them and show them anything that might be suitable within the MLS® listing inventory as a starting point. 

There might not be anything available that fits, but you never know... there just might be something there for them.