Buyer advocates say open houses can work against homebuyers

The National Association of Exclusive Buyer Agents is using National Open House Month to argue that private, buyer-agent-led showings give consumers a better way to judge homes and negotiate. The group says open houses can create privacy risks, emotional pressure and a seller-friendly environment that may distort buying decisions.

Why it matters: - NAEBA says the way a home is shown can shape how buyers judge value, spot defects and negotiate terms. - The group argues private showings with independent buyer representation give consumers more privacy, more time and better leverage. - The issue matters most during peak summer buying season, when open houses are widely used to attract traffic.

What happened: - During National Open House Month, the National Association of Exclusive Buyer Agents urged homebuyers to think twice before relying on open houses to evaluate a purchase. - Jon Boyd, a past NAEBA president and broker of The Home Buyer’s Agent of Ann Arbor, said open houses are designed to market homes and generate excitement. - Benjamin Clark, NAEBA president and principal broker at Homebuyer Representation Inc. in Salt Lake City, said buyers deserve an environment focused on informed decision-making, not emotional urgency.

The details: - NAEBA says open houses are inefficient because they are limited to narrow time windows and often scattered across different communities. - NAEBA says a buyer agent can line up multiple private showings in one day based on location, price range and buyer priorities. - The group says open houses offer little privacy because buyers may not want to discuss pricing concerns, defects, negotiation strategy or repair issues within earshot of other visitors or the listing agent. - Rich Rosa, a former NAEBA president and co-founder of Buyers Brokers Only, said crowded open houses can create competition and scarcity pressure. - NAEBA says that pressure can push buyers to rush decisions or overlook concerns. - The group says unrepresented buyers risk accidental disclosure when casual comments about timelines, school districts or budget limits are overheard by the seller’s representative. - NAEBA says open houses are highly orchestrated and can distract buyers from structural, mechanical or layout flaws. - NAEBA says open houses give consumers a narrow view of the market because listing agents use them to capture unrepresented buyers. - The association says information presented at an open house will generally support the seller’s asking price rather than provide an unbiased market analysis. - NAEBA says listing agents have a legal duty to prioritize the seller’s interests, including the highest price and most favorable terms.

Between the lines: - NAEBA is making a broader case that open houses are not just a convenience issue; they are a bargaining and information issue. - The group’s argument also reflects a core business model difference in real estate: exclusive buyer agents represent only buyers, while listing agents represent sellers. - NAEBA says one little-advertised purpose of open houses is to find unrepresented buyers, identify future sellers and collect contact information for databases.

What's next: - NAEBA is encouraging buyers to use private showings with independent buyer representation whenever possible. - The association says quieter showings can help buyers compare homes objectively, ask candid questions and discuss concerns freely with a fiduciary representative. - Consumers can learn more at NAEBA’s website. - The release also points readers to buyer resources for the press and source pages for Jon Boyd, Rich Rosa and Benjamin Clark.

The bottom line: - NAEBA wants buyers to see open houses as a marketing tool, not the best setting for a careful home purchase decision.