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Jeremy Sheppard Blog post by Jeremy Sheppard

Why do we consider the Percentage of Open for Inspections?

Hi, I’m Jeremy Shepherd and I’m talking about the Percentage of Open for Inspections. This is a metric we use in our research to analyse property markets for their potential for capital growth.

The Percentage of Open for Inspections, or OFI% for short, is the percentage of properties that have open for inspections out of all the properties that are listed for sale.

So, if there are 10 properties listed for sale and three of those have open for inspections, the other seven you need to book an appointment, the OFI% would be 30%. In that case, not every property listed for sale on a real estate website will have open for inspections — some require you to book an appointment with the real estate agent.

Now, imagine a property market in which demand exceeds supply. If you are a real estate agent, you will encourage your client to have an open for inspection because you don’t want to be going back and forth, booking appointment times with multiple potential buyers. For the vendor, it’s much more efficient if you get everyone through the property on the same time on a Saturday morning. Conversely, if supply exceeds demand, you don’t want to set up all the signs and go out to the property. The vendor doesn’t want to have freshly baked bread or create other scents in their kitchen,  they don’t want to have to tidy up all the time, only to have nobody turn up. So it makes perfect sense in markets where demand exceeds supply for a real estate agent to have open for inspections.

As property investors, we’re after markets where demand exceeds supply. One of the indicators of a market where this exists is a market where the majority of listings have open for inspections.

This is an important indicator for us — it’s a metric we use in our research to help us uncover those markets where demand exceeds supply and capital growth is imminent.

But, of course, it’s not the only metric we use. Our research page lists many more metrics.

Thanks very much for watching, please leave your comments below:

 

 

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