A caravan in real estate involves inviting estate agents to view a group of houses listed for sale, with the aim of gaining more exposure and marketing. It differs from an open house and private showing, and can be useful in unique markets or slow sales. The decision to put a home on a caravan tour is made between the seller and their agent, and opinions on its success vary among agents.
In real estate a trailer refers to a presentation method that some listing agents will use when selling a home. A caravan site involves inviting estate agents to a house, or more often a series of houses, listed for sale in the hope of gaining more exposure and marketing. The sales theory behind a caravan is that other agents know what their buyers are looking for or may know of an interested buyer who would otherwise lose the property.
A caravan differs from both an open house and a private show. An open house is a scheduled time and date when an individual home is open to the public, with or without an agent, and a private showing is scheduled by an individual buyer’s agent for that specific client. A caravan however, typically involves viewing a group of houses and is reserved for estate agents only. The goal of an open house is to attract as many potential buyers as possible and get a quick offer and thus remains the preferred selling tactic. However, some circumstances may warrant placing a home on a caravan tour.
In some unique markets, particularly those where homes that are close to each other are very different or vary greatly in price and style, a caravan can expose a listed home to prospective buyers through feedback from other agents. Similarly, in markets where sales are slow, a trailer provides local agents with first-hand information about homes that may be of interest to prospective buyers.
A house may be placed on a caravan tour shortly after inclusion in the multiple listing service and often after the first open house, especially if it has been unsuccessful and poorly attended. The decision to put a home on a caravan tour is made between the seller and their agent. Many agents differ in their opinions as to whether a caravan is a successful marketing plan. Some agents believe that a home sells more quickly by exposing it to as many people as possible, including other agents, while others believe that a caravan only brings in curious and potentially competing agents and not prospective buyers.
If you’re selling your home and your agent suggests a caravan, discuss the pros and cons with them to decide if it’s the right technique for you. In most cases, this involves just one day, but in some cases a caravan may require the house to be available for multiple days.
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