What Is An Open House And How Does It Work?

You’ve probably heard the term “open house” when people talk about the home buying process. If you haven’t attended an open house, you may not know how they work. And if you’ve never hosted an open house, you may not know how to organize one.

Whether you plan to attend an open house or host one, understanding how open houses work will help you make the most of the experience.

What Is An Open House In Real Estate?

An open house is when a homeowner and their real estate agent invite the general public to view the property, usually within a 1- to 3-hour window. During the event, the listing agent answers questions, points out design features and takes down the contact information of any interested buyers.

Open houses are a long-standing tradition that started in the early 1900s. Before open houses became an industry standard, sellers would put a “for sale” sign in their front yards. For many sellers, this method proved to be a slow and less effective strategy for finding prospective buyers, even combined with a word-of-mouth campaign. Eventually, real estate brokers started organizing tours of homes for sale to better market properties and find serious buyers.

What Is A Broker’s Open House?

At a broker’s open house, only real estate professionals can view the property. A broker’s open house may be a good idea for sellers who aren’t comfortable inviting a bunch of strangers into their homes.

A seller’s agent will also use this opportunity to gauge reactions from other agents and brokers. They can discuss the home’s asking price and marketing strategy with their colleagues and ask if they have clients who may be interested in the home.

How Do Open Houses Work?

Since homes vary widely in their floor plans, interior design and finishings, it’s helpful to give buyers time to tour a property alone or with a real estate professional. While a home seller can use scheduled showings to give individual buyers time to learn about the home, an open house offers a pressure-free environment for a larger pool of buyers to imagine themselves living in the space.

Open houses are also more likely to trigger a bidding war than private showings because having multiple home buyers view the property together may generate a sense of urgency to submit an offer. That’s why seller’s agents often recommend open houses as a marketing strategy to drum up interest in a newly listed home.

How To Prepare For An Open House

Sellers can prepare for an open house by staging their home. Home staging can include decluttering or removing personal items, cleaning surfaces, tidying common areas or moving furniture around.

The goal is to make your home’s rooms and decor as attractive as possible. Consider adding fresh flowers, painting over scuff marks, freshening up pillows or removing personal mementos that may distract a prospective buyer. Aim for a neutral setting that allows home buyers to envision themselves living in your home.

Buyers should also prepare before attending an open house. Consider bringing a home buying checklist  so you can compare notes on all the homes you’ve seen. If you think you may want to make an offer on the spot, bring a mortgage preapproval letter and any documents the seller’s agent may need.

The Pros And Cons Of Open Houses

Even though open houses can benefit sellers and buyers alike, some may prefer private showings. Before you choose to host or attend an open house, consider the pros and cons.

Pros For Sellers

Open houses offer sellers many advantages that can make them well worth the effort, such as:

• Attracting a large number of potential buyers within a short time frame
• Giving owners a chance to collect feedback from a wide range of visitors
• Increasing the chances of getting multiple offers
• Showcasing the home at its best with fewer viewings
• Possibly reducing the time it takes to sell the house

Pros For Buyers

Sellers aren’t the only ones who can enjoy the benefits of an open house. Buyers can benefit from the opportunity by:

• Getting a sneak peek at a home without making a commitment
• Determining whether the size or type of house works best for their situation
• Having a chance to imagine the home as their own

Cons For Sellers

Sellers should also be aware of the potential downsides to hosting an open house, such as:

• Committing the time and effort necessary to prepare the home
• Leaving the home in the hands of a REALTOR^® or agent for several hours
• Having strangers in your home for several hours
• Showing the home to people who may not be qualified or prepared to purchase it

Cons For Buyers

Buyers may experience these drawbacks of attending open houses:

• Navigating a distracting and busy environment
• Feeling pressure to submit an offer
• Being in close contact with many other people
• Needing to decide which open houses to attend (or miss), as they typically take place during the weekend

Open House FAQs

If you’re still unsure about open houses, you can learn more by scanning through some questions sellers and buyers frequently ask.

Can I go to an open house without my REALTOR^® or agent?

Yes. If you don’t have an agent or want to see the home on your own, you can.

However, attending with a real estate agent may help you determine what’s important about the home. Your agent can remind you of real estate market trends or ways to strengthen a potential offer. The expertise of an agent can be especially beneficial for first-time home buyers navigating the housing market.

How can I find an open house to attend?

Most open houses are listed on brokerage websites, social media accounts and neighborhood event pages. You can also use a real estate app to find upcoming open houses.

What is proper etiquette at an open house?

First, it’s helpful to remember that someone still likely lives in the home you’re touring, so treat it with respect. Also, avoid disclosing too much information about your finances or house hunting experience when you meet the seller or their agent. If you eventually make an offer on the home, you’ll be dealing with one or both. Oversharing might cost you some leverage when negotiating your offer.

The Bottom Line

Open houses can be an effective and mutually beneficial way for buyers and sellers to connect. That said, open houses may not be right for everyone. If you’re a seller, research all your options and weigh their pros and cons before you decide to open your doors to the public.

If you’re a prospective buyer looking to take the next step toward homeownership, start an application for initial mortgage approval today.