5 Best Practices for Hosting an Open House

Hosting an open house has always been a vital part of property sales.

According to a 2018 survey, 53 percent of home buyers attended an open house when searching for a home in the United States. Meanwhile, only 47 percent said they didn’t attend any open house during their house hunt. 

But that’s not the case today — partly due to the COVID-19 pandemic. 

According to the National Association of Realtors, only 7 percent of buyers found the home they bought by visiting an open house in 2020. That’s because 93 percent of home buyers rely on the internet to find their future property. 

So, why should anyone still host an open house today? 

Five Reasons Why You Should Still Host an Open House

Here are a few reasons to host an open house today. 

1. Increased Initial Visibility

An open house is a handy tool for today’s home sellers. According to a NAR study, 92 percent of homebuyers said open houses were at least “somewhat useful.”

That’s because it gives your home some much-needed visibility and brings the buyers directly to you. Besides, heavy traffic increases the chance of finding prospects who’ll schedule a private showing later. 

2. More Convenient 

Scheduling multiple private showings can be tedious and time-consuming, taking several weeks. By comparison, an open house takes only a day. 

That means multiple homebuyers can view the property at their pace. 

An open house is also an excellent way to show off the community and provide relevant information about the area. These include schools, restaurants, grocery stores, and community centers. 

3. Offers Useful Feedback

An open house provides useful feedback about a house’s condition and pricing. That means you’ll not only understand what interests the buyers but also what needs changing. 

With feedback comes insight. In other words, you can adjust your listing based on the prospect’s comment about the house. 

4. Provides Relaxing Environment 

It’s not uncommon for buyers to be on the fence about whether to make an offer on a property. 

Since people crave instant gratification, an open house can be the deciding factor. Seeing the house in person can help gauge your interest in the property. 

Indeed, 8 percent of buyers found the home they purchased because of a yard sign. 

5. Build Relationship with Prospective Buyers

As said earlier, open houses help you meet several prospective buyers. 

While only one individual will end up buying the property, you would have built a long-lasting relationship. In other words, any of these prospects could become a buyer down the line. 

Now that we’ve explored the significance of hosting an open house, let’s consider the million-dollar question. How? 

Five Best Practices for Hosting an Open House

Here are five best practices for hosting an open house. 

1. Publicize the Open House

According to a NAR report, 52 percent of home buyers found the home that they eventually purchased on the web. That means using the internet to spread the word about your open house should be a no-brainer. 

Consider posting information about the event across social media channels such as Facebook, Instagram, Twitter, and LinkedIn. You could also post a video tour of the house on YouTube, Facebook Live, and Instagram Stories. 

Here are other ways to publicize your open house on the web: 

• Advertise on Craigslist

• List the property on MLS and FSBO sites

• Dedicate a website to publicizing the open house

Besides online exposure, it’s also a good idea to leverage word-of-mouth. 

For example, you could tell your friends and colleagues that your home is on the market. Another option is to place a “For Sale” at the property to invite passersby to your open house event. 

2. Stage Your Property

After spreading the word about your open house event, the next step is to stage the property. But what exactly does that mean? 

Home staging involves preparing a private residence for sale in the real estate market. It often involves decluttering and depersonalizing a home to make it appear neutral. 

The goal here is to make the property appealing to as many potential buyers as possible — and it works. 

A report from the NAR revealed that 46 percent of real estate agents believe that home staging increases a property value by up to 5 percent. Similarly, 53 percent of realtors say that staging reduces a property’s duration on the market. 

So, clean your home as you’ve never done before. Also, consider removing your photos and those accent chairs. 

Finally, focus on the decors that highlight your home’s most impressive assets. 

3. Do the Paperwork

The most effective open house often entails doing tons of paperwork. 

First, you have to print advertising materials such as yard signs, colored flyers, brochures, and pamphlets. After that, you may want to provide documents to help serious buyers make a purchasing decision. Examples of such paperwork include: 

• Original sales contract

• Mortgage statement

• Homeowners insurance report

• Home repairs and maintenance record

• Homeowners association documents

• Natural hazard document

Yes, preparing this paperwork creates a seamless selling process. More importantly, it can help maximize gains on your property.

4. Encourage Free Exploration

The purpose of hosting an open house is to sell the property. However, maintaining a professional demeanor is vital to achieving this aim. 

In other words, don’t try to sell your home at an open house event. 

Think of the event as a meet and greet, serving as a point of the first contact. At this point, your job is to encourage free exploration and inform prospective buyers. 

So, greet your guest with a smile and print sign-in sheets for guests to fill out their contact details. Also, it’s best to hand out a property description sheet that highlights your home’s best features and offer light refreshment. 

After the leisurely exploration, you can begin a dialogue with guests that show serious interest in buying your home.

5. Follow-Up After the Open House

The final stage of hosting an open house is the follow-up. 

It begins with sending a “Thank You” note to the guests that were in attendance. After that, you could contact everyone on the sign-up sheet within a few days of the open house event. 

Since people rarely make such life-changing decisions on the spot, your message might be the motivation they need. Besides, making an effort to reach out can break down a lot of communication barriers. 

It provides the opportunity to ask about their interest in your property. You could also learn new ways to make the home more appealing to other prospective buyers. 

Wrapping Up: When Hosting an Open House is a Bad Idea

A few years ago, open houses were one of the few ways to show off a property that’s for sale. But that’s no longer the case. 

Today, the internet provides a convenient way for prospective buyers to find their future homes. As a result, hosting an open house isn’t the winning proposition that it used to be. 

Be that as it may, the practices above can help with your sale. You only have to identify several serious prospects for your open house to be a success.