Open House Basics

Sellers and agents have used open houses for decades to generate interest in their listings. The public can view a property without having to schedule a private viewing. Open houses can attract a lot of curious neighbors and casual visitors, but they can also be a great opportunity for serious buyers to determine if a property is worth further investigation or to gain a better understanding of the neighborhood's home values.

In fact, 59% attended an open house last year when they were shopping for a home. In addition, 43% said that attending an open house was extremely important to decide if it was right for them. Homebuyers typically attended 2.6 open houses before purchasing.

Open houses are for anyone interested in buying a home.

What Is An Open House?

Open houses are an opportunity for potential buyers to tour a house that is on the market. In the case of a listing for sale-by-owner (FSBO), the seller hosts the open house. Open houses are usually held on weekends during a specified period, typically between noon and 3 p.m.

Buyers Get Open House Benefits

• You don't have to schedule: 

  Unlike private showings, you don't have to make a specific appointment to view a home. Instead, you can simply show up during open house hours to view the home at the pace you prefer.

• Find out who is in the market: 

  Attending an open house can help you gauge the interest of other buyers. This information can help you determine how fast you should submit an offer and what price.

• Get an idea of current home values: 

  If you are just beginning your search, it can be useful to see what homes are selling in your area.

• Refine your home's non-negotiable features:

  Visiting homes in person can help to redefine your priorities: Do you require an extra bedroom? How does a backyard this large look?

What Is The Purpose Of Open Houses?

Although not every seller or agent will host one, here are the steps to set up an open house:

1. The agent and the seller decide on the day and time of the open house.

2. The agent has posted the open house to the local MLS.

3. The agent promotes the open house via social media, online, and print with flyers or ads.

4. The agent prepares the open house by purchasing refreshments, printing flyers, and setting up signs. You can eat the cookies as a shopper.

5. The agent hosts the event and greets buyers, answering their questions about the community and property.

6. Buyers should remove their shoes and tour the house. If possible, take photos and video and note important information.

7. Anyone interested in the property will contact their agent. The buyer will then arrange a private viewing to view the house again or submit an offer immediately -- this is common in fast-moving reality markets.

Who Holds An Open House?

Any of these people can host open houses:

• Listing Agent:

  The listing agent is the person who will sell your home.

• Listing Agent's Associate or Team Member:

  A busy agent might also send another agent to their place, either a colleague or an agent from their office. Although they should be familiar with the local market, they may not be familiar with the particular home.

• Homeowner:

  If a property is being sold by the owner (FSBO), the homeowner will host their own open house. Although they are undoubtedly the experts on the house, their knowledge of the local market may be limited.

How To Prepare For An Open House

Sometimes you may just happen upon an open house as you are walking or running errands. These tips are for those who intend to search for open houses as part of their home-buying strategy.

• Find Relevant Open Houses

  You should only visit one open house if you are planning to visit several in a single day. Make sure that you are only looking at listings that meet your criteria for location and budget. It is not worth spending time looking at houses that are out of your price range or too far from where you work or school.

• Do Your Research About The Market Before You Buy

  You can compare the price of each home to other nearby homes with the help of your agent or your research. Are the prices comparable to similar listings in the neighborhood? Are there any flaws? Is it under contract? Are there many other buyers interested in the property? Is it still on the market? ("Days on Market" indicates that a listing has been sitting on the market for a long time. However, depending on where you live, the average number of days on the market can vary.

• Keep Your Mind Open

  You might need to give some attention to a home in a desirable neighborhood if you are on a budget. Open houses can help you get a better understanding of the property's potential and condition. You also have the chance to ask questions about renovations, such as the location of load-bearing walls or details regarding local regulations.

How To Go To An Open House

Once you have done your research and are ready to add open houses to your home search. Here's what to do when the day comes.

Ask Questions

Open houses are your best chance to ask the agent or their associate questions. Don't be shy. Ask questions you aren't able to answer by simply reading the listing description.

• What are the HOA restrictions?

• Is the seller subject to a property tax appeal?

• Are there any renovations or repairs that have been made recently?

Tip: Open houses can help you determine if the listing agent is the right person for you. Many agents represent both buyers or sellers.

• Be Honest

  Open houses are hosted by agents looking to find potential buyers. Be honest if you are already working with an agent or don't have any real interest in purchasing.

Inspect For Damage And Disrepair

A home can look much better online if it has been professionally photographed. In addition, open houses are a great opportunity to inspect a home and note any defects affecting your offer price.

• Check the windows: 

  Look out for flaking paint or misaligned frames. These are signs that windows need to be replaced.

• Look for water damage: 

  Search for ceiling stains, warped baseboards, and musty odors.

• Take note of cracks: 

  Cracks in ceilings or drywall can indicate foundation problems.

• Test functions: 

  Open cabinets, doors, and drawers. Turn on the faucets. Check the water pressure. Open houses are a great way to check that everything is working properly.

• Assess potential renovation needs: 

  Home improvement can add up. Be aware of urgent renovations such as floors, fixtures, or large-scale repainting needs when you're walking through a house.

Tips For Buyers About Open Houses

Open houses are an opportunity to put yourself in the shoes of the seller. You're inviting strangers into your home, and you don't have to be there. Every seller wants to sell their open house and find a buyer. However, they also want their home to be safe and free from damage.

Do

• If requested, take off your shoes and wear boots.

• Begin by greeting the host and registering your name.

• If necessary, sign in (this is a safety concern for the seller or their agent).

• Note down your thoughts and take notes about what you like, dislike, and any follow-up questions.

• If the listing does not include one, ask if you can capture it.

• Respect other guests and buyers

• Wait for others in a room to leave before you go.

• Provide feedback if requested.

• Thanks to the host of the event.

Do Not

• Refuse compliance with homeowner's or agent's house rules.

• Critique the home or the style of the owner.

• Listen to other visitors' conversations.

• Touch the belongings of the owner.

• Allow children to run wild without any supervision.

• You can bring food and beverages (except water).

• Don't divulge information that could compromise your negotiation power, such as your budget or level of interest in the house.

• Pets are welcome