While open houses aren’t a necessity for all homebuyers, some find the opportunity to see, feel and experience a home in person can turn a consideration into a must-have purchase.
The chance to physically inspect key features, experience living conditions and ask agents direct questions can help buyers visualize their future lives in homes on the market, but hosting an open house event isn’t always easy.
Below is a comprehensive guide to open house do’s, don’ts and rules for estate agents to help avoid common mishaps and present sellers’ properties in the best possible light.
Why host an open house?
Hosting an open house provides sellers and agents a great opportunity to guide prospective buyers through the best aspects of a property in a welcoming and professional environment.
Of course, some buyers prefer to focus on key details in listings, but giving people a chance to inspect physical features and ask detailed questions in person can be invaluable.
Redfin research from 2020 suggests open houses can increase sale values by as much as $9,000, while reducing the time a property spends on the market by up to seven days.
However, when open houses aren’t carefully planned and managed, agents and sellers run the risk of buyers losing interest.
What to do when hosting an open house
To run a successful open house, agents must prioritize presenting properties in the best possible light while remaining honest and ensuring potential buyers feel welcomed.
With this in mind, below are four key points to consider when hosting your next open house.
1. Do make sure required forms are signed
Open house regulations changed in 2024, with the National Realtors Association (NAR) introducing new rules for sellers, buyers and agents to follow.
Under the new NAR rules, agents must make sure potential buyers sign at least one form before entering any listed property, the most common of which include:
- Limited Property Representation Agreement: Grants agents the right to provide more detailed information about the property to prospective buyers for up to 30 days.
- Open House Visitor Non-Agency Disclosure Form: Acknowledges that the agent is acting as a representative of the seller and has no professional ties to the buyer.
- Full Exclusive Buyer Representation Agreement: Defines an exclusive agreement between the agent and the buyer in relation to real estate and brokerage services.
2. Do engage with prospective buyers
Open houses give agents the opportunity to form real connections with prospective buyers.
Be friendly, welcoming and polite to every attendee to help them form a positive relationship with the property they’re viewing.
Make sure to tailor your approach to different visitors, ensuring all prospective buyers feel comfortable asking questions if they wish, but equally free to explore the property in peace.
3. Do highlight the property’s best features
Being face-to-face with prospective buyers gives you a chance to showcase key features in ideal conditions.
Take cues from each attendee and consider what they’re looking for in a home. For example, some buyers may appreciate HOA or neighborhood features like security cameras, while others may be more interested in architectural details and features.
4. Do have printouts ready for attendees
Well-organized, professional printouts detailing key property information and features help buyers plan walkthroughs around their needs.
Presenting factsheets to visitors on entry provides a starting point for conversations about the property, helping you gauge what individual buyers are looking for and demonstrating your commitment to facilitating a friendly, welcoming and professional service.
What not to do when hosting an open house
While open houses can make properties more attractive to potential buyers, poorly managed events can drive buyers away.
1. Don’t host at an inconvenient time
There’s little point in hosting an open house if no buyers are available to see it, so you need to think carefully about times and dates.
Hosting in the afternoon on weekends will usually attract the biggest crowds, but hosting on weekday evenings can be a good idea if you want more control over viewings.
2. Don’t put pressure on potential buyers
Pressuring prospective buyers into making a deal right away can lead to unhappy visitors and potential reputational damage, so steer clear of high-pressure sales tactics.
Listen to each attendee’s needs and offer helpful guidance where you can, but avoid slipping into a sales pitch without any confirmation of real interest.
3. Don’t let the seller have too much input
Of course, the ultimate goal of an open house is to find a buyer and make the seller happy, but sellers won’t necessarily have the same soft skills as you do.
It might not be intentional, but sellers can sometimes show desperation or put pressure on potential buyers, so it’s important for agents to take full control of open house events.
4. Don’t overlook the power of social media
Bringing attention to open house events is made much easier when agents harness the power of modern marketing tactics, helping draw in bigger crowds from much farther afield.
Post about events on social media sites, include high-quality pictures and video tours, and take the opportunity to highlight key property features listings may not draw attention to.
Follow the rules
Open houses can help agents engage with potential buyers and show off the best features of listed properties, but only if rules, regulations and best practices are carefully followed. By considering factors like updated NAR rules, communication with visitors and appropriate hosting times, agents can leverage open houses to improve the sales process for all parties.
Andrew Reichek is the President of Bodebuilders.com. Connect with him on LinkedIn.
