Buffets, cocktails, music, mood lighting: That’s how you hawk a luxury property

For an open house, arrange the furniture in such a way as to make the property feel lived-in and approachable to prospective buyers. (Photo: Edward Eyer via Pexels)

If you are among those who want to sell your property located in the heart of Lutyens’ Delhi or for that matter a bungalow in leafy south Mumbai you inherited from your forefathers, here’s what you could probably do — list it for an open house, stage it, and schedule a viewing over a lazy weekend.

What's an open house?

In an open house, all potential buyers visit at about the same time, usually over the course of a three- to four-hour period on a weekend. To attract potential buyers, some real estate consultants may even organise cocktails and hors d’oeuvres so that  the prospects linger a little longer and soak in the place. Usually, prospective buyers are permitted to tour the property with little to no pressure. An event such as this may even spark a competition among potential buyers, as they rush to get their offer in before anyone else.

In short, an open house is a property viewing held over the weekend to showcase luxury properties on sale.

“These open houses help us plan a three- to four-hour window over a weekend in advance, when the family members (those wanting to sell a property) are prepared to receive visitors. Often, the owner leaves the property with the caretaker for the time reserved for visits by buyers interested in purchasing the property,” explains Amit Goyal, CEO, India Sotheby's International Realty.

The idea is that the sellers are not disturbed. The house is professionally staged with furniture, etc., so that prospective buyers can experience what the place would look like once they live in it.

The number of open houses has increased over the years. “We get dozens of offers through an open house. The buyer that makes the highest offer gets the property,” he said.

Also, instead of the buyer and seller negotiating across the table, prospective buyers are invited to visit the open house and make their offers. “These buyers are vetted before an invitation is extended to them.” he said. “Finally, it is the seller who gets to choose the highest bidder,” he explains.

“Often, there are beautiful canopies set up in the garden with refreshments, high tea, or even cheese and wine. The idea is to allow prospective buyers to experience the property at leisure,” he says.

“We choose the best time of the day and the best part of the house. If a property looks out on a beautiful sunset, then we conduct the open house in that part of the house at that time of the day. A buffet may be set up on the terrace or on an open deck where people can feel the breeze and experience the sunset. During winters, we conduct open houses in the afternoon when buyers can enjoy the sun. The idea is to make the buyers experience the property they intend to buy,” he says.

Does the owner meet all the buyers?

“We organise a formal meeting only after a serious buyer has shortlisted the property. It’s then that we set up a one-on-one meeting between the buyer and the seller to discuss the price and the payment structure,” says Goyal.

On any given day, a real estate consultancy may not organise more than two to three open houses. “On a given day we do not do multiple open houses. Occasionally, we may have two or three but not more than that,” says Goyal.

Often prospective buyers look at properties online and shortlist the ones they wish to see. “Once that is done, we take these buyers to the shortlisted options and they often end up selecting one,” says an expert who deals in luxury properties.

Are open houses a faster way to close property deals compared to conventional advertisements, short videos, and social media messaging that are used to showcase high-end properties?

Yes, because the property that's to be sold is made much more presentable and the buyer gets to experience it. Also, when prospective buyers see multiple families coming to view the property during an open house, there is often a quick, psychological reaction.

“There is the urge to make a quick decision and a reasonable offer. In case of an independent viewing, every buyer may feel that he is the only one in the market,” explains Goyal.

Open houses are usually conducted for lived-in properties

“We do it for lived-in properties that are presentable. For a 50-year-old property that requires redevelopment, this concept may not work. It works well for new buildings, penthouses, and farmhouses where prospective buyers get to spend an evening or an afternoon.

A buyer wanting to buy a holiday home will spend a few days in that city and experience the property better. Typically, he may spend two to three days in those locations.

Dressing up your property

Here’s how you stage your property for D-day.

Interior designers say that the seller should arrange the furniture in such a way as to make the property feel lived-in and approachable to prospective buyers. You may want to add a bouquet of fresh flowers in the living room, open the curtains to let in sunlight, or perhaps turn on the lamps to put the spotlight on that famous painting you inherited from your grandmother’s collection. You may also want to play music in the background.

Highlight the best features of the living room, if that’s where the open house is being held. If you have a beautiful floor with hand-painted Azulejos tiles, remove the rug that’s covering them up.