How Do Open Houses Work For Buyers & Sellers?
With Zillow, Trulia, and other online real estate listing destinations, you might think that open houses are a thing of the past. As a Certified Realtor in Morris County, New Jersey, I can verify this is absolutely not the case!
Open houses are still in, although I will admit that having an online presence for a home sale is also essential to the selling process. But online photos –no matter how professional and beautiful they are – aren’t enough to get a sense of what the home is really like compared to physically being in the space. Trust me when I say that open houses are worth the effort, whether buying or selling your home.
What are the benefits of an open house, and are they effective?
Here’s what open houses can do for homebuyers: give them a sneak peek into a house on the market. Regardless of if they intended to buy the house upon entry, an open house allows buyers to browse a home in that specific neighborhood, get a feel for that style of home, and ask questions about the home or the homebuying process!
So how exactly do open houses work?
Like most marketing channels, open houses can serve a purpose in the home buying process–and sometimes that can lead to a sale. Yes, open houses can sell a home –it’s rare, but it happens.
Essentially, an open house is a casual opportunity for neighbors, locals, AND potential homebuyers to view a home on the market without an expectation of buying.
When there is no commitment involved, you open the doors (literally) for more people to walk through a house and spread the word about it to those they know, thus increasing the chances of a sale.
If you’re wondering how long it actually takes to sell a home, I have a post covering the topic here – and trust me, the answer isn’t as straightforward as you think!
Now that we can confirm that open houses do work, let’s look at the details involved in the process and how open houses work for buyers and sellers. Depending on whether you are trying to sell your home or looking to buy a home, there are certain things you should be aware of before approaching an open house.
Consider this your comprehensive guide on navigating open houses no matter which side of the sale you’re on. I want to answer a few questions that buyers and sellers might have when hosting and attending an open house and, overall, what to expect at an open house from a real estate agent’s perspective.
What happens at an open house?
An open house is an event hosted by the seller’s listing agent that allows potential buyers to tour a home on the market. During a set range of hours (usually around midday) on a specified day set by the seller and their agent, a house is “open” for people to tour the home at their leisure and ask any questions about the home or the home buying process.
Do you need an appointment to visit an open house?
No! Most open houses are just that – open houses for anyone and everyone to view. However, because there are set hours for the open house, for example, 12pm to 2pm, it should be evident that anytime between noon and two, you can arrive and tour the home.
Tips for Sellers Before Your Open House
To have a successful open house, there are a few things to consider before you open your home to the public. From preparing for your open house to attending, there are certain things to do and real estate coach, Tom Ferry, suggests his 3 best tips in this video.
What To Do Before an Open House
As a seller, there are a few things your agent will need to do for your open house. From marketing to suggesting upgrades, the little things can sometimes make the biggest difference in the sale of your home!
Your open house needs to be promoted!
There are several real estate sites that your agent will utilize to help spread the word, including MLS, Zillow, and Redfin, and multiple social media platforms. You can also spread the word by posting on your personal social media accounts.
Prepare your home to sell it!
When you put your home for sale, you want to maximize your property value so you can get the best deal on the sale. Okay, Brandie, but how should you prepare your home for an open house?
Preparing a home might mean making minor improvements to your home, including furniture arrangement, decluttering, painting a room a different color, or adding some landscaping to your yard. All of these things can increase the amount your home sells for. Depending on how many upgrades or improvements your home needs, this could stall the timing of your open house date, so plan accordingly!
Do sellers attend their own open house?
No. Your realtor will host the open house, provide marketing material to visitors and should be able to answer and handle any and all questions if they’ve done their due diligence on the home and neighborhood.
A good turnout for an open house might be around 10-15 people, most coming in groups of two. So you don’t have to worry about a huge party breaking out or there being so many people you can’t see your wooden floorboards.
Tips for Buyers During an Open House
To make sure you are fully prepared as a potential home buyer, there are a few things to keep in mind if you want your open house experience to be a success.
How to Find Open Houses
Use real estate listing sites that utilize and list open houses, including MLS, Zillow, Redfin, Realtor.com, and even Facebook Marketplace! If the seller or their real estate agents have listed the property correctly on those sites and tagged it for being available to view as an open house, you should be able to find viewings in and around the area you’re looking to buy in!
You can also hire a real estate agent who will help you with your search and find open houses that align with what you’re looking for in your future home.
What should you bring to an open house?
If you’re interested in purchasing the home, it would be helpful to come to an open house prepared. For example, you might bring a tape measure, camera, paint swatches, and something to take notes in a phone or notepad. Get as much detailed information as possible while you’re there so you can find out everything you need to know before starting the process to make this house your home.
Do you knock at an open house? What’s the right thing to do?
Unless there is a sign indicating that you should ring the doorbell, it’s safe to assume that you don’t need to worry about doing this. It would be helpful to call out a “Hello!” when you enter so the agent knows you are there as they may be occupied in another room upon your entrance.
What should a buyer do at an open house?
Ask questions
Questions are highly encouraged at open houses–so ask away! The idea behind an open house is to break down or eliminate any barriers or reservations potential home buyers might have about this particular home or the home buying process.
So, what questions should you ask at an open house? Consider asking questions that aren’t answered on the home’s listing description.
Have there been any recent renovations or repairs?
What are the HOA rules or restrictions for this area?
How many offers are there on the house already?
How long has the house been on the market?
If you don’t currently have a realtor, you can ask if they have other listings available in the area
Check for damage
Beautifully curated photos posted online don’t always show the true story. Go around the home and look for water damage, test the functioning of doors, faucets, window latches, leaks, etc.
Ensure the home is in good working order and gauge if any renovations are needed. Home improvements can get pricey fast, so you want to ensure you know what you’re walking into before making any offer.
While all home buying processes (should) have thorough inspections before buying, open houses provide an excellent opportunity to see the home’s condition with your own eyes.
Be respectful
This open house may still be a “home” to the buyer, so treat it as such. Here are a few tips to help you be the best open house visitor.
Default to taking off your shoes before entering the home
Greet the host and let them know you are there
Wait for other visitors to exit a room before you enter
Thank whoever is hosting the event upon your departure
One of the biggest etiquette tips to keep in mind is taking pictures and videos. Can you take photos during an open house? The short answer is most likely yes. However, always ask if you can take videos or pictures of the home beforehand. Never assume you can. It only takes a few seconds to ask, and it shows your respect for the home and homeowner.
Be diligent and helpful
If you are serious about buying this home or any home in the near future, it pays off to pay attention. Take notes about any likes or dislikes and follow-up questions you can think of as you tour the home. Provide feedback if requested by the host agent. This helps them reevaluate or adjust for better success.
Be honest about your intentions
Even if you have no intentions of buying the home, you can still tour an open house. Just be upfront and honest with the buyer or listing agent, so they aren’t expending all their attention and energy on you instead of on someone more inclined to buy.
What should you not do at an open house?
Remember, an open house may still be a home lived in by the seller. When touring an open house, refrain from
Touching the owner’s belongings
Open closed doors, cabinets, and drawers without permission
Bringing your pets inside (unless otherwise specified that this is okay by the host or owner)
Criticizing the home or the owner’s style or design
Bringing food or beverages
Use the bathroom while there (unless it’s an emergency and you’ve asked permission!)
Letting kids run around the house unsupervised
All of these tips sound pretty standard, but you’d be surprised how many people don’t follow these guidelines!
Pros and Cons of Open Houses
Like anything in life, there are pros and cons to open houses. Here are a few things to consider before you decide to hold or attend an open house.
Pros to Holding an Open House
If homebuyers are new to the process, open houses are a great opportunity to ask questions and receive guidance and advice on their next steps.
Open houses give sellers additional exposure
Open houses aren’t the place for a hard sale (in 99 cases out of 100), so homebuyers can browse without undue pressure.
Cons to Holding an Open House
Going off a point above, open houses are NOT the easiest place to land a sale. For example, a real estate agent might not have the time and attention to devote to a serious buyer if it's busy. Most of the viewers that come to the open house aren’t going to buy –but they might know someone who is on the market!
You can’t screen the people who come into an open house. Unfortunately, most people who do come have no intention of buying or aren’t qualified buyers for this particular home. There’s not a whole lot you can do about that.
Security issues are a potential problem when you allow anyone and everyone to enter a home. Whether stealing during the open house, breaking in, or vandalizing a home later on after they’ve scoped it out, there is always a chance this can occur.
Whether you’re selling your home or looking to buy one, there are certain things you should consider and expect during the process. With years of experience in the real estate industry, I’ve put together two helpful blogs on the top 12 Things to Expect From an Expert Realtor When Buying a Home and the top 15 Things to Expect From an Expert Realtor When Selling Your Home.
Are you ready to find the home of your dreams or have questions about the process? Let’s chat! Get in contact with me, and we can get started!