how an open house works
in the real estate market buying and selling a property is an example of a relatively illiquid market with dissimilar products each house will be different from the next even if they are in the same neighborhood or even on the same block during an open house the seller or seller s agent allows potential buyers to enter and walk through the property at their leisure or guided by a realtor the goal of an open house is to secure interest from buyers open houses allow interested buyers to take their time looking at the house and surrounding property rather than a shorter one on one appointment with a broker many open houses occur on weekends and brokers may use banners and other fanfare as advertisements during an open house period owners keep the houses clean and organized to attract potential buyers some owners or agents may also serve coffee cocktails or hors d oeuvres at these events advantages and disadvantages of open housesfor people trying to sell their homes an open house provides an opportunity to attract interested buyers to the property a well executed event can generate excitement about the home and potentially lead to an offer many realtors advise their clients to hold an open house the first weekend after the property goes up for sale even if the event doesn t snag a buyer an open house can still be beneficial as visitors walk through the home they re likely to discuss their perceptions of the property this feedback can alert the realtor to issues that might be preventing the house from selling unattractive paint colors for example can be an easy fix that can boost a home s selling potential for some sellers an open house entails more effort than it is worth during the event the property owner must leave the property to give the realtor free rein this may mean making alternate living arrangements for children and pets owners also need to remove personal items like photographs that might prevent prospective buyers from imagining themselves in the home due to safety and theft concerns some sellers are also hesitant to have groups of strangers walking through their homes according to a 2024 report from the national association of realtors nar just 3 of all buyers visited open houses as the first step in their home buying process this includes 4 of people ages 69 to 77 and just 2 of younger people 25 to 33 years most buyers begin the home buying process by either contacting a real estate agent or browsing online however a large portion 47 will attend an open house mostly between the ages of 59 to 68 1 these statistics go against the common belief that opening a home to the public for a few hours on the weekend will draw foot traffic that will translate into a sale with the advent of the internet many properties are listed online before the first open house is scheduled home seekers can view photos and information about the property s condition on a website allowing homeowners to cast a much wider net for potential buyers for some sellers this can make open houses seem obsolete attracts interested buyersalerts realtor to issues with the house through visitor feedbackmay lead to an immediate offergreat way to show the house to a lot of people at once instead of drawn out one by one showingscan entail more effort in organizing than its worthonline listings can reach more potential buyers in a shorter amount of timeowners may have to leave their homes during open housesmay be a potential for theft especially if the event draws a large crowdbroker s open housein contrast to a traditional open house which is open to the public a broker s open house is strictly for real estate professionals a broker s open house intends to allow real estate agents to view the property it also allows the seller s realtor to solicit professional opinions from their peers about the property and its price in many cases the broker s open house also encourages buyers agents to schedule a showing for their clients a broker s open house usually is held midweek when agents are more available than on weekends when they re occupied with showing homes to their clients a broker s open house is among the tools that real estate agents use to market a home in addition to online marketing systems like multiple listing service mls it s a way to introduce a listing to industry professionals in a community 2sellers should make sure to remove or hide any valuables before an open house event to protect themselves against theft in addition it s also a good idea for your broker to require each visitor to sign in with at least their full name email address and phone number 