What is an open house and how does it work?

Open houses play an important role in real estate, allowing buyers to view a home in a low-pressure environment and sellers to show their home to many people at once. It’s a casual but essential part of the home buying process.

As a result, anyone planning to buy or sell a home should learn how an open house works. In this article, we’ll walk you through the basics so you can know what to expect.

What is an open house in real estate?

An open house is a scheduled time when a homeowner and their real estate agent invite the general public to view a property for sale. It usually takes place within a 1- to 3-hour window.

During this time, potential buyers can walk through the house at their leisure to see if it’s a home they’d want to buy. Meanwhile, seller’s agents get to drum up demand and answer any questions from interested buyers. 

What is a broker’s open house?

A broker’s open house is a private open house that is only open to real estate professionals. It gives the seller’s real estate agent a chance to show off the property to other agents and solicit their professional opinion on the property and its price.

How do open houses work?

During an open house, the home is available for anyone to stop by and look around.

For the seller, this requires getting the house clean and ready for visitors. Meanwhile, their real estate agent markets the event, hosts potential buyers, and answers any questions.

For potential buyers, an open house involves walking through the home, getting a feel for it, and asking any questions they might have. The atmosphere is usually casual and low pressure.

Open house vs. private showing: What’s the difference?

Unlike an open house, a private showing allows a buyer (and their real estate agent) to tour a home privately. In other words, they’re the only other potential buyers there, providing a more intimate setting to ask questions.

While private showings are a chance for buyers to get more one-on-one attention from the seller’s agent, they also require booking an appointment. For the seller, they can also require prepping the house multiple times.

How to prepare for an open house

Hosting or attending an open house takes some preparation.

As a buyer

As a buyer, make sure to:

• Do research ahead of time
• Consider getting preapproved for a mortgage
• Bring a home buying checklist
• Prepare questions
• Take notes and photos
• Be respectful of other guests
• Respect the seller’s privacy

As a seller

As a seller, try to:

• Deep clean the house
• Declutter and depersonalize
• Make minor repairs
• Stage the home strategically
• Secure valuables
• Be away from home during the open house

The pros and cons of open houses

Open houses have their benefits and drawbacks. Let’s go over both for sellers and buyers:

Pros for sellers

• Increased exposure: An open house draws potential buyers to the home, giving it more market exposure.
• Potential for multiple offers: After viewing the home in person, multiple open house guests may make an offer.
• Immediate feedback: Comments from guests on what they do and don’t like about the house can provide quick and valuable feedback.
• Fewer viewings: Hosting one open house is less work than hosting multiple private showings for the same number of guests.

Pros for buyers

• Low-pressure environment: Open houses are a great way to view a home for sale without the pressure of a one-on-one meeting with the seller’s agent.
• More convenient: Open houses usually have time windows, so you can pick a time to go that’s convenient for you.
• Opportunity to ask questions: While at an open house, you can ask the seller’s agent any questions about the property.
• No commitment required: Attending an open house doesn’t require any commitment to buy.

Cons for sellers

• Requires time and effort: Cleaning and staging a home for an open house can take a lot of work.
• Attracts unqualified buyers: Some open house guests may not be serious about buying and are only looking for fun.
• Lack of privacy: An open house exposes your home to strangers who may want to look in every room and corner.
• Security concerns: Though rare, some guests may try to steal or vandalize your property during an open house.

Cons for buyers

• Distracting and busy environment: An open house can put a lot of people in one home, so it may not be ideal if you’re claustrophobic or noise sensitive.
• Limited time window: Buyers must be available during the appointed time window to attend.
• Potential sales pressure: While uncommon, some open houses may have sellers’ agents pressuring you to buy the home.

Open house FAQ

Here are answers to some frequently asked questions regarding open houses:

What is the purpose of an open house?

An open house gives sellers a chance to show off their home to the public and potential buyers the chance to view it in a relatively low-pressure environment.

Can I go to an open house without my REALTOR^® or real estate agent?

Yes, you can go to an open house without your real estate agent, but it’s best to let your agent know you’re attending and tell the hosting agent that you already have an agent.

How can I find an open house to attend?

There are many ways to find an open house near you. For example, you could search the internet and social media, look for yard signs, or ask your real estate agent.

What is proper etiquette at an open house?

When attending an open house, sign in when you arrive, follow the seller’s house rules, respect their home and privacy, and be considerate of the host and other guests.

Can you make an offer at an open house?

Yes, you can make an offer at an open house, but it’s more common to do so right afterward so you have the chance to consult your agent. Also, it’s best to get pre-approved for a mortgage upfront to make your offer stand out.

The bottom line: Open houses are beneficial for buyers and sellers

Ultimately, open houses are an important step in the real estate journey for everyone involved. They give sellers a way to generate broad exposure to their home, while buyers get a low-pressure opportunity to explore the home and ask questions.

If touring open houses has sparked your interest in buying a home, don’t wait to get your finances in order. Start the mortgage approval process with Rocket Mortgage today so you’re ready to make a confident offer when you find your dream house.