Recently a fellow REALTOR and friend of mine, Bill Gassett who specializes in the Hopkinton MA Real Estate market and the surrounding area wrote about The Pro’s and Con’s of delaying showings as a marketing tool.
I myself will often use deferred showings as a marketing tool to gain exposure on my seller’s homes. Bill’s article prompted me to write about my take on deferred showings.
What is a deferred showing?
Deferred showings is where a home is marketed in the Multiple Listing Service but no showings are allowed to occur for the first 3 to 7 days. The Massachusetts Multiple Listing Service regulates the length of time on deferred showings.
The buying public will be able to see it on all of the online channels but will not be able to schedule a showing until sometime in the near future. Usually the first time you can view a home for a deferred showing is at the homes first open house.
Deferred Showings can be a Powerful Marketing Tool
Why would you want to defer showings?
As Bill Gassett states, deferred showing allows your property to build buyer momentum. It allows the buying public time to find your house for sale. Typically, it take 3-7 days for a interested home buyer to find out about a new home in the marketplace.
In heated real estate markets, the buyers are just waiting to get into the next great home. If done correctly the open house will be flooded with home buyers and a bit of a frenzy created. Offers are than collected and presented several days after the open house.
A home that has had deferred showings, if done properly, will usually generate multiple offers.
Deferred showing work best on homes that are priced correctly and have been properly prepared for the market place.
Buyers are more educated than ever before, with the internet as a major tool that buyers are using to find their next home. They know when a home is priced properly and with many real estate agents using professional photographers they can see the quality of the home. Remember, the first showings of your home are really online.
If you take the time to price your home properly and prepare your home properly for the market deferred showings can be a powerful marketing tool that may even get you a few thousand more for your home due to buyer demand.
Do not do deferred showings if:
- You house is overpriced. It is important that your home is priced at market or a few percentage points above. If you start getting 3% to 5% above fair market value deferred showings are not the way to go.
- You have a unique home to your market place. If your home is unique to your community and has a limited buying pool, deferred showing are probably not a good idea. For example, if you have a contemporary here in New England, contemporaries in New England are not common and take a unique buyer.
- You have not taken the time to prepare your home. If you are trying to get top dollar for your home and you have not taken the time to present your home, deferred showing are probably not right for you.
- If you are in a moderate to severe buyer’s market. In a moderate to severe buyer’s market their is usually a ton of inventory for buyers to choose from and deferred showing may not be the best idea.
Deferred showings can turn off your best buyers if you defer showing without conditions being right.
Discuss with your real estate agents if deferred showings are right for your home.
One con of deferred showings, as Bill Gassett points out is you may be turning away a potential buyer with limited availability to view homes. A relocation buyer, who has flown in for a few days to view homes, is a perfect example.
Typically the first buyers through the door will be your best buyers. They are the buyers waiting for the next new property to come on the market. The first buyers have been out in the market place, rejecting the other homes. They have felt pain over lost offers or being to tough on home inspections….. they are ready to buy.
When things are falling into place with my sellers, and I feel the conditions are right, I will discuss the possibility of deferred showings with my sellers. Don’t be afraid to ask your real estate professional if deferred showings are right for you.
This article, What is a Deferred Showing? was written by Kevin Vitali of EXIT Group One Real Estate. Kevin has over 15 years experience helping sellers make the most of their home sale. Call Kevin today at 978-360-0422 or email at firstname.lastname@example.org if you would like to know how to get your home sold.