Humber/Ontario Real Estate Course 4 Exam Practice

Which is NOT true about conducting open houses?

1. Listing salesperson must conduct them

2. They usually result in new clients

3. Open house signs are often exempt from bylaws

4. Sellers prefer open houses for showing effort

5. Only buyers can attend them

6. They are unnecessary in slow market

The correct answer is: Listing salesperson must conduct them

The assertion that the listing salesperson must conduct open houses is not true. Although it is common for the listing agent to host an open house to showcase the property to potential buyers, there is no strict requirement that they must personally conduct the open house. In some cases, brokerages may allow other agents—such as buyer's agents or even unlicensed assistants—to manage the open house, as long as they comply with the necessary legal and ethical guidelines. Regarding other statements, open houses are typically seen as a strategy to attract new clients, as many potential buyers appreciate the opportunity to view properties without the commitment of scheduling individual showings. Additionally, open house signs often do have exemptions from certain municipal bylaws, allowing agents to place them in front of properties to attract attention. Sellers often value open houses as they provide a perceived increase in showing effort and can enhance interest in the property. It should be noted that while open houses can garner significant interest, especially in a competitive market, they are not strictly necessary and can be less effective during a slow market. The idea that only buyers can attend open houses is also not entirely accurate, as others—like neighbors or real estate professionals—may attend as well.