Open house

Key Takeaways

• An open house is a scheduled block of time when the public can tour a listed property without an appointment.
• The event serves two different purposes at once: exposure for the seller, and lead generation for the hosting licensee.
• Washington has no open house statute. The rules binding the host come from the advertising rule in WAC 308-124B-210 and the agency duties in chapter 18.86 RCW.
• A Washington broker who performs brokerage services for a buyer is that buyer's agent unless the broker's firm has appointed the broker to represent the seller (RCW 18.86.020).

What It Means

An open house is a scheduled window, most often a weekend afternoon, when a listed property is opened to the public and anyone can walk through without an appointment. It serves the seller by putting the property in front of buyers who may not yet be working with a broker. It serves the hosting licensee by producing conversations that can become future clients. Those purposes are separate, and treating them as one is where the trouble usually starts.

The host is doing three jobs at the same time. The first is presenting the property, which means having answers ready about the roof, the systems, the taxes, and the neighborhood, and disclosing any Material Fact the broker knows and a visitor would not readily see. The second is controlling the property, since strangers are moving through a home that still holds the seller's belongings. The third is managing relationships with visitors, some of whom already have a broker and some of whom do not. That third job carries the most legal weight. A Brokers Open House is a different event: it is open to other licensees rather than to the public, and it is used to preview a new listing inside the industry.

How It Works in Washington

Washington has no statute or rule written specifically for open houses, so the host is governed by the general rules that reach any Advertising and any contact with the public. Promoting the event carries a firm-name requirement: WAC 308-124B-210 requires all advertising or solicitations for brokerage services, including internet advertising, web pages, email, newspaper, and other visual media, to include the firm name or an assumed name as licensed. A broker using an unlicensed personal brand must display the firm's licensed name clearly alongside it and must first receive advance written approval from the firm's designated broker.

The agency side carries more weight. Under RCW 18.86.030, a broker owes every party reasonable skill and care, honest and good faith dealing, disclosure of material facts known to the broker and not apparent or readily ascertainable, and timely accounting for money received. The same section requires the broker to give the Law Of Real Estate Agency Pamphlet prescribed by RCW 18.86.120 to any party not represented by a broker before that party signs an offer, or as soon as reasonably practical. RCW 18.86.020 then sets the default: a broker who performs brokerage services for a buyer is that buyer's agent unless the broker's firm has appointed the broker to represent the seller. A host appointed to the seller under the listing is the seller's agent, and saying so early is what keeps an unrepresented visitor from assuming otherwise. Our guide to Washington's agency law and written services agreements covers how those appointments get documented.

Example

Marcus, a broker with Sound North Realty, hosts a Sunday open house from 1:00 to 4:00 at a Kirkland listing priced at $749,000. His firm holds the listing and has appointed Marcus to represent the sellers, so he is the seller's agent for the afternoon. He promotes the event with a social post and a yard sign, both carrying the Sound North Realty firm name as the advertising rule requires.

Twenty-two visitors sign in. Nineteen say they are already working with a broker, so Marcus answers questions about the property and hands out the flyer. Three are unrepresented. To those three he gives the agency pamphlet and says plainly that he represents the sellers, so anything they tell him about budget or timing goes to the sellers. One of the three hires her own broker that week and writes an offer at $735,000, which is $14,000 under list. Because Marcus disclosed his role before she signed anything, his representation of the sellers stayed clean and the gap got negotiated on the merits.

Common Mistakes and Exam Traps

• Washington has no open house statute. A question asking for the controlling law is pointing at chapter 18.86 RCW agency duties or the WAC 308-124B-210 advertising rule.
• A public open house is not a broker's open house. The public event is aimed at buyers; the broker's version is a preview for other licensees.
• The pamphlet duty is triggered by an unrepresented party before that party signs an offer, or as soon as reasonably practical, not by a visitor stepping through the door (RCW 18.86.030).
• Advertising for the event must carry the firm's licensed name, not only the broker's personal brand or team name (WAC 308-124B-210).