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Ask Andrew: The Truth About Open Houses

By WTOP Staff

Ask Andrew

This sponsored, biweekly Q&A column is written by Andrew Goodman, Associate Broker and top producing agent with Gallagher & Co. Real Estate, Inc. Based in Bethesda, Andrew serves clients in Maryland, D.C., and Northern Virginia. Please submit comments, questions, and opinions in the comments section or via email.

Question: My house is about to go on the market and I was curious to get your take on open houses. Are open houses really worth it?

This has been a hot topic lately so I’m glad you brought it up. I am a firm believer that nothing works all of the time, but everything works some of the time. (Basically, doing something is better than doing nothing at all.)

But I don’t believe open houses are absolutely necessary.

Open houses are a great way to bring in buyers that want a quick glance at your home. It is a way for you or your realtor to get in front of the buyers and really explain the pros of the home.

No realtor, besides hopefully your own, will be able to describe and explain your home better. Some buyers that do not have a realtor enjoy touring homes on their own. Open houses make it convenient for them to do so without having to schedule a specific time with your listing agent or the seller. On top of that, open houses are also a known time for a seller to make sure the home is in pristine condition. Sellers can touch up, clean, decorate, and or stage the home the best way possible ahead of time in preparation for the open house — unlike having last minute realtors come through to show the home with only a one- or two-hour notice.

The biggest creator of problems in having an open house is whether the agent will be focused on selling the home or focused on finding new clients.

This has been an issue for what seems like forever. Almost every agent that has ever held an open house will tell you they met a new client at one — and that they found the client a new home that wasn’t the open house where they met.

This is not a real issue if that buyer wasn’t interested in the home in the first place. But how do you know for sure?

I have held many open houses and talked with agents who have been in the industry for more than 20 years. Together, we can count the number of buyers on one hand who purchased that specific home being shown off in an open house. Those buyers usually buy other homes.

Open houses can change with the market conditions. With our current seller’s market, many buyers have been willing to pay a premium so the sellers will cancel the open house.

Some listing agents advertise an open house in hopes to give a sense of urgency, which in most cases isn’t just a sense but a reality. In a buyer’s market, you tend to see open house signs all over the place — agents are holding homes open in hopes to attract any buyer.

I personally don’t recommend holding open houses right away, unlike most agents.

Most agents hold open houses the first weekend the property comes on the market. The reason for my philosophy is that most buyers have realtors these days, so why should we get in their way?

I’m not a fan of stepping on the toes of an agent for a buyer, nor am I fond of making the buyers uncomfortable when viewing the property. Most buyers don’t like being watched when viewing a home, so why would a buyer feel comfortable being watched at an open house? Sellers and their agents will know within the first week whether the home is priced correctly or if an open house is needed because of the activity on the home.

Let the thousands of realtors work for you. Let them show their buyers the property when it’s convenient for them and in the way they are most comfortable. If a buyer is not represented, and is in fact a true buyer, they will contact the listing agent. If they are just a window shopper or nosy neighbor, you don’t need, nor want them wandering through your home and looking at your belongings in the first place.

In a nutshell, an open house is a great tool. But that tool may not always be the tool that is necessary.

If your home is advertised and priced appropriately you will obtain great results. Be sure to consult your realtor to decide if an open house is best for your marketing plan.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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