Are Open Houses Worth It? When One Might Make Sense

More demand for open houses in a slower market

The real estate market is slowing down amid soaring interest rates, as well as price spikes that are putting homeownership out of reach for many Americans.

“Purchase demand continues to tumble as the cumulative impact of higher rates, elevated home prices, increased recession risk, and declining consumer confidence take a toll on homebuyers,” says Samuel Khater, chief economist at Freddie Mac. This sentiment reflects broader market trends, where, despite slight improvements in mortgage rates, affordability remains a major obstacle. Existing home sales are poised to reach their lowest levels in nearly 30 years, primarily due to limited buyer interest and an imbalance in supply.

Pittman has seen the recent slowdown with more frequent price reductions and houses selling in two to three weeks or more rather than a few days. She expects open houses to increase in popularity as homes take longer to sell and foot traffic decreases.

Are open houses still effective in today’s market? If you’re looking to sell your home quickly and at the highest price possible amid slowing demand and price appreciation, hosting an open house can be a smart move. While online listings are essential, an open house gives potential buyers the opportunity to experience the property in person, potentially generating more interest and offers.

According to real estate experts, this approach can be particularly beneficial in a market with less buyer activity, as it allows sellers to stand out and engage directly with prospects. However, it’s important to ensure the home is staged well and priced correctly to maximize the open house’s impact.

When are open houses worth it?

While 41% of buyers look online and 20% contact a real estate agent as the first step in the homebuying process, only 3% begin at an open house. However, don’t overlook the potential for attracting serious buyers to your open house. In a market where buyer interest may be slowing, hosting an open house offers a valuable opportunity for buyers who are already online or working with an agent to get a firsthand look at the property. This face-to-face interaction can lead to stronger connections and may even prompt quicker decisions, especially when inventory is low and the competition is high.

In a competitive market where homes are selling quickly, your property may be under contract before you even have a chance to host an open house. However, in certain situations, an open house can still be a powerful tool to increase exposure and attract competitive offers. For example, if your home has unique features like a mother-in-law suite, or if you live in a high-demand area with desirable amenities like trendy local shops and easy access to popular attractions, an open house can showcase these advantages.

Similarly, properties with rare features such as RV parking or a waterfront view also can benefit from the added visibility. Open houses are particularly effective for entry-level homes, which often attract motivated first-time buyers eager to find their ideal property

If you’re selling a luxury home in an exclusive neighborhood, showings by appointment are generally a safer and more effective choice, as they provide privacy and minimize the risk of theft. An open house may not align with the high-end nature of the property and could attract unqualified or even undesirable visitors.

Additionally, Pittman advises against hosting open houses for homes located in high-crime areas, as these events potentially can expose the property to unnecessary risk. Tailoring your strategy to the property’s location and market can help ensure a secure and efficient sale.

Perks of an open house

While an open house may not always lead to an immediate sale, it offers several benefits. The preparation for the event allows your home to shine in photos and during private showings, creating a lasting impression on potential buyers. If inventory is low in your area, the increased competition from buyers who have previously lost out in bidding wars can result in quicker, higher offers to avoid missing out again.

Additionally, hosting an open house can be less disruptive than arranging multiple individual showings, offering a more efficient way to attract serious interest

Open house pitfalls

Only 4% of buyers find the home they purchase from an open house sign compared to about half who discover their dream house online or 28% through an agent. So your listing agent is more likely to pick up leads for new clients than a buyer for your home.

Plan for success

If you’ve decided an open house is worth it, read on for strategies to ensure your event succeeds.

Weekends work best

Hold your open house on the weekend, particularly the first weekend after listing your property to create a sense of urgency. Sundays usually work best, but during football season opt for Saturday so you won’t compete with the big game.

Hype your open house

Marketing is the key to a successful open house. A top agent will advertise the date, time, and location of your open house along with photos and descriptions of your property on the Multiple Listing Service (MLS), a digital platform used by real estate brokers and agents.

Promote your open house effectively and cost-efficiently by starting at least 2 to 3 weeks in advance on social media. This lead time allows your posts to accumulate shares, tags, and likes, helping to generate maximum buzz and reach a broader audience. Engaging visuals, relevant hashtags, and compelling calls to action will further boost your visibility and encourage interaction.

• Nextdoor: This neighborhood-centric network connects local residents and offers an events calendar perfect for listing your open house. It’s a great way to reach neighbors who might know interested buyers or are looking to move within the area.
• Facebook: Spread the word by creating posts on your personal profile or setting up a dedicated Facebook event for your open house. You can further increase visibility with targeted ads or by listing the open house in the Facebook Marketplace, complete with photos and details.
• Instagram & X: Generate excitement with eye-catching photos and engaging captions. Use relevant hashtags like #openhouse, #househunting, or #dreamhome to maximize reach and attract potential buyers searching for these terms.
• Your agent’s platforms: Post the open house on your real estate agent’s personal website or blog, as well as the agency’s site. This helps tap into a professional network of colleagues who may have clients looking for homes in your area.
• Real estate sites: Platforms like Zillow, Trulia, and Realtor.com are essential for reaching a broad audience of serious homebuyers. Make sure your open house details are listed there for maximum exposure. Other key sites to consider include Redfin, which has a large and active user base, and Homes.com, known for its comprehensive home listings. Additionally, don’t overlook LinkedIn for networking with real estate professionals and potential buyers in your area.

Don’t forget flyers and signage

While digital marketing is essential, don’t underestimate the power of physical signage to draw in potential buyers. Unless restricted by your homeowner’s association or local regulations, aim to place 10 to 15 open house signs in key spots in your neighborhood, including major intersections and your front lawn, to boost visibility. Additionally, distribute flyers at local supermarkets, shops, and community centers, using public bulletin boards to spread the word.

And don’t worry if curious neighbors stop by — this can actually work to your advantage. A few days before your open house, consider personally inviting them or giving them a call. Neighbors often know people interested in moving to the area, and they can be great ambassadors for your property.

According to the NAR’s latest Profile of Home Buyers and Sellers, the median distance people move is 50 miles. You never know when nearby residents might be looking to upsize to a larger home in the same school district. Additionally, your neighbors could have friends or relatives eager to move into the area, making them valuable connections to spread the word about your open house.

Take these steps to prepare

Your open house can backfire if you don’t put in the effort to prepare properly. “You have to do the prep work to get the top price,” Pittman says. This means cleaning, decluttering, and handling minor repairs to ensure your home makes a strong impression. Without proper preparation, an open house could leave a negative impact on potential buyers, as visible maintenance issues or a messy space can give them leverage to make lower offers.

Approach your open house with the same attention to detail as you would for private showings. Once it’s over, you’ll be ready for any scheduled tours that follow. Take these preparation steps seriously to maximize your home’s appeal and increase the chances of receiving favorable offers.

Tips to make the most of your open house

Follow these additional tips to reap the benefits of your open house:

• Create a property description highlighting the unique features of your home that buyers can take with them. Start with a catchy headline, use descriptive language, and highlight amazing amenities.
• If you’ve done a pre-listing home inspection, provide copies of the inspection report to be upfront about your home’s condition. Some buyers may waive the home inspection contingency if satisfied with the results.
• Play background music to create the perfect atmosphere for your open house. Pop and rock genres are most popular for selling a home, according to a survey by Living Cozy, an online source of homeware and furniture.
• You’ve worked hard preparing for the open house, so take off for a few hours during the event and enjoy an activity with your family. Bring pets with you or make arrangements for them. Potential buyers feel more at ease without the homeowner present. They take their time to explore and picture themselves living in the home. Your agent will answer questions and call attention to features they shouldn’t miss.
• A top real estate agent knowledgeable about local market conditions can help you decide if an open house is worth it. Your agent will guide you in preparing for and promoting a successful open house. Connect with agents experienced in marketing homes faster and for more money via HomeLight’s Agent Matching platform.

Eliminate the hassle with Simple Sale

If you decide that the disadvantages of an open house outweigh the benefits or prefer to avoid showings altogether, consider HomeLight’s Simple Sale platform. Just answer a few quick questions about your home, its condition, and your selling timeline. You’ll get a competitive cash offer within 24 hours without financing contingencies or costly repairs.

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Step 1: Request Offer

Open houses are worth it to maximize exposure and price

Amid fierce competition and limited inventory, a recent NAR survey reveals that 6% of buyers purchased homes sight unseen, relying on virtual tours and open houses to guide their decision. While technology has made it easier to explore properties remotely, the combination of rising mortgage rates and escalating home prices means that buyers who initially view homes online are increasingly likely to visit in person before finalizing what is likely their biggest investment. Seeing the property firsthand remains a crucial step for many to feel confident in their purchase

Pittman has witnessed deals fall through when buyers made offers based on virtual viewings, only to find that the property didn’t live up to the online presentation. Since most buyers likely will want to visit the home in person before committing, hosting an open house is a smart move. While there’s no guarantee of an immediate offer, open houses significantly increase exposure and foot traffic, improving your chances of selling at a higher price.

Header Image Source: (Adam Winger / Unsplash)

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