What Is An Open House?

What is an Open House?

An open house is when a homeowner and their real estate agent invites the general public to view the property, usually within a 1- 3-hour window of time. During the event, the listing agent will answer questions, point out design features and record the contact information for any interested parties.

Open houses are actually a long-standing tradition that started in the early 1900s. Back then, to list a home for sale, the owner would simply put a sign in the yard. However, most sellers would have a hard time finding prospective buyers using word of mouth.

Eventually, real estate brokers started to open listed homes to visitors as a way to better market the property and find serious buyers.

How Does an Open House Work?

Since homes can vary widely in their floor plans, interior design or finishings, it can be helpful to give buyers time to tour the property alone or with a real estate professional. While a home seller can use scheduled showings the same way, an open house allows viewers more time to imagine themselves living in the space.

Open houses are also more likely to start a bidding war than a private showing because multiple home buyers can view the property simultaneously, which might create a sense of urgency to submit an offer. That’s why seller’s agents often recommend using this type of even as a marketing strategy to drum up interest in a newly listed home.

Pros and Cons of Open Houses

Pros for Sellers:

• Attracting a large number of potential buyers within a short period of time
• Giving owners a chance to collect feedback from a wide range of visitors
• Increasing the chances of receiving multiple competitive offers
• Showcasing the home at its best without having to make numerous appointments
• Possibly reducing the amount of time it takes to sell the house

Cons for Sellers:

• It can be labor-intensive to prepare the home
• Owners have to leave their house in the hands of their Realtor or agent for several hours
• A lot of people may visit the home, which can create safety concerns
• The buyers viewing the house may not be qualified to purchase it
• It’s easier to advertise the home online or through a multiple listing service

Pros for Buyers:

• Get a sneak peek at a home they’re interested in without having to make a commitment
• Figure out the size or type of house that would work best for their situation
• Learn more about the home buying process firsthand

Cons for Buyers:

• They can create a distracting and busy environment
• The buyer could feel pressured into submitting an offer