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  1. Home
  2. Mortgage Knowledge Center
  3. Planning an Open House: What Sellers Need to Know

MORTGAGE

Planning an Open House: What Sellers Need to Know

What you'll learn: Learn about open houses, how to plan one, and their pros and cons.

EXPECTED READ TIME: 7 MINUTES

January 03, 2023

Planning an Open House: What Sellers Need to Know

Your home is going on the market. Does that mean you need to host an open house? Where do you even begin? We’ve compiled the most crucial details about real estate open houses including how they work, how to prepare to host your own, and the pros and cons – so you can decide if an open house is right for you.

How do open houses work?

An open house provides the opportunity for potential buyers to view your home during a specified day and time without the need for an appointment. It can get your property in front of more eyes at one time and is generally viewed as lower pressure compared to a private viewing.

Here are common aspects that make up an open house.

Guest sign-in

A host – typically your listing agent – will greet visitors when they walk in the door. They’ll often provide marketing materials with photos and details about the property and ways to follow up. Unless you’re selling a home by owner, you are not expected to be present for an open house.

The goal of an open house is to find prospective buyers that lead to offers, but anyone can attend. That means it may also draw in curious neighbors and casual viewers whose intent to buy is zero to never. It’s fair to say, however, that most people who show up for an open house are at least open to the possibility of putting in a bid.

Still, that is potentially a lot of people coming through the door. To capture leads and as a safety check, the host will require guests to sign in prior to viewing the home. Information collected typically includes:

  • First and last name
  • Contact details such as email and phone number
  • Real estate agent name
  • How they heard about the open house

Asking for this kind of information as the cost of entry may be enough to discourage people who are just window shopping.

Property walk-through

Potential buyers want to get a feel for the space and envision it as their own. Will their oversized sectional fit in the living room? Does a cooking aficionado have enough storage for their kitchen tools? Can a mom watch her children play in the backyard while doing dishes at the sink?

You can expect visitors to:

  • Examine interior and exterior spaces
  • Open and close closets, cabinets, and drawers
  • Take measurements
  • Record photos and videos

Buyer questions

For the best results, an open house host should be prepared to answer questions from potential buyers about the seller, the property, and the surrounding area. Everything from the age of the carpet to how many offers have been made are fair game.

Potential buyers may ask about:

  • The reason the home is for sale
  • History of renovations or house updates
  • Utility types and average costs
  • Neighborhood home values

Preparing for these questions ahead of time helps a seller look trustworthy and professional. Your agent may prepare FAQs in a printed document or on your online listing to answer buyer questions before they even ask.

Follow-up

It’s possible for open houses to generate offers on the spot, especially in a seller’s market. But sometimes follow-ups help nurture a deal. A savvy real estate agent will elicit feedback, engage the most promising prospects, and share results with you.

The host may follow up with:

  • Potential buyers
  • Potential buyers’ real estate agents
  • The seller

How to prepare for an open house as a seller

The secret to a smooth and successful open house lies in what happens well before a guest walks in the door. Planning, staging, and setting expectations are all key parts of the process.

Planning for success

Planning for an open house starts with setting a date and time when most potential home buyers are off of work and available to attend. That could mean weekends or early weekday evenings. Be sure to also consider the season and if adverse weather, darkness, or construction could affect your turnout.

If you’re working with a real estate agent, he or she will advertise the event through all channels available such as the Multiple Listing Service (MLS), real estate websites, social media, printed posters, and flyers.

Following are some best practices for planning an open house:

  • Traditionally, the best time for open houses is between 11 a.m. and 3 p.m. on a Saturday or Sunday.
  • Avoid holidays and days with big events.
  • Promote the event through digital and traditional media starting two to three weeks before the event.

Cleaning and staging

Once a date is set and people are marking their calendars, it’s time to prepare the house. Deep clean everything from soap scum on sinks to grime on cabinets. Remember: Everything will be touched!

You’ll also want to declutter the house, remove personal items, and stage it in a way that beckons buyers into a space they can see themselves living in. Experts suggest engaging the five senses through bright, inviting rooms, joyful smells, fitting music, scrumptious refreshments, and luxurious surfaces to touch.

Consider these cleaning and staging suggestions:

  • Hire a cleaning company to deep clean every room in the house.
  • Remove family photographs, trinkets, and dated decor or furniture.
  • Plan special touches such as freshly baked cookies, gourmet coffee, and seasonal flower arrangements.

For a deeper dive, see 10 open house tips for sellers and download the free essential guide to sell your home eBook.

Setting expectations

Does an open house sound daunting? It’s true – an open house is no small feat, but you may not have to do as much as you think.

Many real estate agents act as the event planner and host and actually prefer sellers to not be present for an open house. They’ll guide you through planning, offer tips for staging (and may even hire a company to do the heavy lifting), interact with guests, and handle follow-up calls.

When that’s the case, there are a few ways you as the seller can be the most helpful with open house prep. Let your agent handle most of the legwork and follow their lead with smaller preparation tasks around the house. Make arrangements for you and your family (including pets) to be gone during the event. And give neighbors a heads-up – you could even ask them to spread the word!

Pros and cons of open houses

Now that you know how a real estate open house works and what goes on behind the scenes, you may be wondering: Are open houses worth it? Or more specifically: Do open houses sell homes?

Let’s start by looking at open house benefits and drawbacks.

Benefits

  • Open houses serve as a marketing tool that can generate exposure for serious potential buyers.
  • A well-orchestrated event reaches attendees’ five senses in ways an online listing or a simple private viewing cannot.
  • An impressive experience can be the final touch buyers need to put in an offer.

Drawbacks

  • Open houses can draw in unqualified buyers more interested in free food and seeing a beautiful home.
  • In rare cases, criminals may jump at the opportunity to have insider access to a home’s layout and valuables.
  • There’s no guarantee the preparation and expense will pay off with one or multiple offers.

The data

According to the National Association of REALTORS© (NAR) 2022 Home Buyers and Sellers Generational Trends Report, an open house served as an information source for 41 percent of all buyers that responded to the survey. Only 2 percent reported an open house as the first step taken in the home buying process – the highest percentage started with an online search – but an open house was part of the journey.

At the end of the day, open houses are just one tool in the home seller’s toolkit. Many factors will determine whether it’s right for your situation. When in doubt, work with a trusted real estate agent to help you decide.

Want the knowledge to buy and sell with confidence?  Check out our free eBook library.

For more information about PenFed Mortgages:
 

PenFed Mortgage: 

800-970-7766

Get Started

SIMILAR ARTICLES

Top 10 Open House Tips for Sellers | PenFed Credit Union

Preparing for an open house? Discover our top tips for showing your home, cleaning, proper lighting, and what to do with pets. Read on for more.

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How to Prepare to Sell Your Home Within the Next 12 Months | PenFed Credit Union

If you're planning ahead for a home sale next year, here's how you can get your home, and your family, ready for the process.

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How to Prepare to Sell Your Home in 6 Months | PenFed Credit Union

If you're thinking ahead to an upcoming home sale, here's how you can get your home, and your family, ready for the process.

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When is the Right Time to Sell My House? | PenFed Credit Union

Discover the best and worst time to sell a house. Then you can decide when to put your home on the market for maximum profit and the least amount of stress.

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image

CONVENTIONAL LOANS

Rates starting at % (APR %)¹

 

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Home Buying Steps

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Disclosures

1Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on discount point, which equals percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.

*Prime Rate is % as of . The APR for this Home Equity Line of Credit (HELOC) is based on prime plus a margin and can change monthly. Fixed Rate Advances will be amortized over the Fixed Rate Advance Term, with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin, and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than % for primary residences and second homes.

  • Annual Fee: Notwithstanding the foregoing, an annual fee of $99 will be assessed on each account anniversary.
  • Home equity lines of credit (HELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan on monthly basis. Closing costs range between $500 and $8,500 for credit lines of $500,000. Contact a representative for additional details.

Appraisals: PenFed will attempt to establish value via an independent method. If that method is unsuccessful, or the value is not sufficient for the amount requested, an appraisal will be required regardless of CLTV. An appraisal is always required in the following circumstances:

For all loans with a loan amount greater than $400,000.

If an appraisal is required, it must be ordered by PenFed. You will be contacted for authorization and payment prior to ordering. Appraisal fees average $550 to $850 (some run higher).

  • Closing Cost Credit: PenFed will pay most closing costs associated with a home equity line of credit (HELOC), which includes credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, property search, and quick close. Member is responsible for any city, county, and/or state taxes if the subject property is located in FL, LA, MD, MN, NY, TN, or VA. If an appraisal is required, the member, who is responsible for the fee whether or not the loan closes, will pay the cost.

Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Draw Period. During your Draw Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.

Fixed Rate Advances will be amortized over the Fixed Rate Advance Term with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than % for primary residences and second homes and 4.75% for investment properties.

Property Insurance: Property insurance is required.

Multiple PenFed Loans: Multiple PenFed Equity loans and HELOCs are available as long as the member and collateral qualify (except Texas). For Equity loans and HELOCs the total indebtedness cannot exceed $500,000 for all PenFed Equity and HELOCs combined.

PenFed does not lend on:

  • Mobile homes
  • Co-ops or time-shares
  • Properties that are currently listed on the market for sale
  • Commercial property or property used for commercial purposes, even if a residence is part of the property
  • Undeveloped property (land only)
  • Properties with more than 4 units

Properties that are currently under major construction/renovations: Property must be fully livable, with no safety issues. (Examples: no missing rails from stairs/decks, no open walls with wires showing, missing kitchen appliances/counters, missing bath fixtures or unfinished pool).

  • Additional limitations may apply

Home Equity Line of Credit:

  • This Account has a Draw Period of 10 years, followed by a repayment period of 20 years.
  • If only minimum payments are made during the draw period, the loan balance will not decrease.
  • In Texas, the maximum CLTV available is 80% on owner occupied properties. Additional restrictions apply in Texas, so please ask a representative for details.
  • In all other states, the maximum CLTV is 85% on owner occupied properties and second homes. Additional restrictions or requirements may apply based on application characteristics.
  • Property type of Condo has a maximum CLTV of 80%.
  • The maximum CLTV available is dependent on credit qualification.
  • Rates vary depending on owner occupancy and CLTV and other loan criteria.

Minimum Loan Amount Requirements in all States:

  • For an owner occupied property or second home the minimum loan amount is $25,000 and the maximum amount is $500,000 with a CLTV of 85% or less of the fair market value.

Other terms and conditions apply; call 844-918-4307 to speak with a representative for details. All rates and offers are subject to change without notice. To receive advertised product, you must become a member of PenFed.

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This credit union is federally insured by the National Credit Union Administration. Rates are current as of December 2023 unless otherwise noted and are subject to change.

APY = Annual Percentage Yield
APR = Annual Percentage Rate


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IMPORTANT NOTICE

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The content you are about to view is produced by a third party website that is unaffiliated to Pentagon Federal Credit Union. PenFed takes no responsibility for the content of the page.


IMPORTANT NOTICE

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For more information about the relationship between PenFed and PenFed Title, LLC, see the Affiliate Business Arrangement Disclosure.


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