What Is An Open House In Real Estate, And Can It Help Sell A Home?

Are you thinking about selling a home? An open house is a great way for potential buyers to see a home in person and learn more about it. It's also a great opportunity for sellers to meet potential buyers and generate interest in their property.

If you’re thinking about selling a home, hosting an open house is a great way to get started.

What Is An Open House?

An open house is a short period of time when a homeowner or their real estate agent open the home for potential buyers to explore. In some cases, this benefits the selling process by attracting buyers, initiating immediate offers or informing the seller of existing problems with the home.

During an open house, the homeowner or their real estate agent will typically be present to answer questions, give tours of the home, point out design features, record contact information for interested parties, and share knowledge about the neighborhood and real estate market.

The open house offers home buyers the ability to pop in on a whim to get a sense of how many other people are interested in buying the house. Home buyers can also take their time viewing the home and surrounding property without making a commitment. Open houses can feel less formal than a one-on-one showing.

How An Open House Event Works

A seller's listing agent typically sets up an open house event. Visitors are generally free to walk through the home at their own pace. However, they should be respectful of the property and avoid touching or moving any personal belongings. Visitors should also be mindful of their noise level, as there may be other visitors in the home.

Private showings are another way for buyers to view a home. They are typically scheduled directly with the seller's real estate agent. During a private showing, the buyer will have the opportunity to view the home with the agent's undivided attention.

How Does A Broker’s Open House Work?

A broker’s open house isn’t for home buyers. It’s held for real estate agents, enabling them to determine whether a property may be of interest to any of their clients.

How To Prepare For An Open House Event

Here are some tips on how to prepare for an open house event.

1. Update The Home’s Listing

Be sure the listing is up to date with the latest information. It helps keep buyers informed and can help a listing stand out in the market. 

Buyers find pictures very important when buying a house. Taking new photos can help build trust in and give prospective home buyers a true view of a listing. Consider rearranging the home’s setup if necessary to create a more tour friendly open house.

2. Choose The Right Day And Time

The best time of day to host an open house is between 11:00 a.m. and 3:00 p.m. on Sundays. This is because most home buyers are off work. However, the best time to sell a house has to do with the conditions of your local market.

3. Promote The Open House

Use social media platforms like Facebook, Instagram, TikTok, YouTube and LinkedIn to post high-quality images or videos of the property. You can also share the event on your personal profile and ask friends to help spread the word. Re-share the event a week, 3 days, and a day before the open house.

Be sure there are signs at all major entrances to the neighborhood. Use the signs to point the way to the open house and distribute printed flyers to neighbors so they know there may be additional traffic during the open house.

4. Stage The Home For The Big Day

Home staging can help buyers envision themselves living in a home. It can also help buyers understand the space available and how to get the most value out of a room. Remove valuables, family photos, worn-out furniture, and other personal items. Replace them with neutral accessories and furnishings.

5. Let Your Agent Handle The Event

If a homeowner is selling their house for sale by owner (FSBO), they will be responsible for marketing and setting up their own open house. If a homeowner is working with a real estate agent, the homeowner is typically not present at an open house and their REALTOR^® handles the rest.

Pros And Cons Of Hosting An Open House

Hosting an open house can have both pros and cons. Here are some pros and cons:

Pros

• Attract multiple interested buyers. Buyers can stroll through the home without feeling pressured and get a sense of what it might be like to live there. They can see the property without setting up an appointment, which can help them gauge interest before making an offer.
• May lead to immediate offers. The act of scheduling an open house can cause some buyers to submit an immediate offer. Open houses can increase exposure and foot traffic, which can improve your chances of selling your home at a higher price.
• Can speed up the home selling process. A well-executed event can generate excitement about the home and potentially lead to an offer. 

Cons

• Homeowners aren’t usually present. They are generally not present at an open house because it can make potential buyers feel uncomfortable. It might be difficult for a homeowner to hear negative feedback from potential buyers.
• Open houses require a lot of setup. The property owner needs to create an inviting atmosphere by setting up the space strategically. This can include offering light refreshments, such as cookies and bottled water.
• Not all attendees are serious buyers. People may want to see what a property looks like inside, or they may be interested in exploring different neighborhoods. Open houses can also attract people in the neighborhood who are just curious to see how your house compares to theirs.

FAQs About Open Houses

Here are a few answers to commonly asked questions about an open house.

Why do they call it an “open house”?

The term "open house" comes from the noun phrase "hospitality for all visitors." It can refer to a house that's open for prospective buyers, agents and the public for a specific time frame. 

What’s the best time for an open house?

The best time to schedule an open house is between 11:00 a.m. and 3:00 p.m. Some real estate agents suggest scheduling a 2- to 4-hour window. 

What is the most important day for open houses?

The best day for home sellers to hold an open house is the first Sunday after the home is listed, as most potential buyers are off work on weekends. Sunday is also the traditional day for an open house, as it tends to be less eventful than Saturday for most families.

What Happens After An Open House?

If everything goes well and people become interested in purchasing the property, buyers or their agents will be reaching out to sellers or their agents to ask follow-up questions and discuss offers. At the very least, sellers and their agents will have a list of people to reach out to and market the house further.

The Bottom Line

Open houses are an important part of the real estate industry and can be beneficial for both sellers and buyers. The goal of an open house is to secure interest from buyers by allowing them to take their time looking at the house and surrounding property. 

If you are interested in selling your home, connect with an agent to discuss your options. An agent can help you market your home and make the most of your open house.