Open Houses – A Great Way to Spend a Sunday Afternoon

Do you know what’s so great about going to open houses on Sunday afternoons? It’s like having your own reality show on HGTV! How else can you see so many different types of homes? And pick up decorating tips? Or maybe figure out how much your own home is worth. Or check on the competition if you are thinking of selling your home. And it doesn’t cost anything!

All right now. We know that real estate agents set up open houses so they can attract potential buyers to properties they have listed. But there is some thinking that hosting agents are really looking for new sellers whose homes they can list and new buyers to represent. What is the true story?

It’s all true. By having an open house, we can tell the owner that we are working to sell their home. We get feedback from those who visit the home and relay that information to the seller. If we impress a visitor to the open house and they want us to either sell their home or help them find a home, it is an added bonus to us. But the primary reason for holding an open house is to make it easy for you to see the home, without having your agent make a specific appointment. And because the homeowner knows the house will be seen by others, some complications from last minute appointments (like dirty dishes in the sink or a dog roaming the home) can be avoided.

What should you do when going to an open house? First, introduce yourself to the agent conducting the open house. You will be asked to sign in. We can then have a record of how many people stopped by and hopefully some contact information to follow up with you. If you are concerned about how the information you supply will be used, ask the agent. I tell visitors to my open houses that I do not share their contact information with others nor do I sell the info and that I am the only one who will keep it.

I will also ask you if you are already working with an agent. It is important to let the hosting agent know if you are represented. And it all has to do with money. Most real estate transactions are co-brokered, meaning the commissions are split between multiple agents and companies. If I know this when we first meet, it reduces confusion if you decide to buy the home.

Here are some frequently asked questions (FAQs) about open houses:

1. I am a curious neighbor. Can I stop in?

Yes, please do. I am hoping that you will have a friend or family member who wants to live near you. And you will almost always give me detailed information about the neighborhood and the people living nearby.

2. If I have questions about the house, can I trust the agent to tell me the truth?

In general, yes, you will get truthful answers. But remember, in most cases, the agent at the open house works for the seller. So there are some things she may not share with you such as what might be the lowest price the seller will accept, or the reason why the house is on the market, or if the seller must move by a certain date. But she is ethically bound to tell you about other things such as a leaky roof, buried oil tank and any other major issue about the house, assuming she knows it.

The largest reason you might not receive good information is because the agent showing the home is not the listing agent and just doesn’t know the answer. If you are seriously planning on purchasing the home, you will have ample opportunity to do your own due diligence before you risk anything more than time. If it is important for you to get the answers, grab the agent’s card and follow up after the open house.

3. Will the agent at the open house have information about local schools, shopping, and how things are handled in that town?

Maybe. But you should always check out important information yourself.

4. Can the listing agent help me prepare an Offer to Purchase the home?

Yes, she can. But I strongly suggest you hire your own agent. There should be no cost to you to do so, and you want somebody who is working for you and not the seller.