We’ve all seen the sign: OPEN HOUSE. Maybe there are balloons or arrows at every stop sign, like a neighborhood maze. No matter if they have fancied up the signs to grab your attention, they mean the same thing. For a couple of hours on a nice Saturday afternoon, your home is completely open to the public. Among the crowd are the typical lookie-loo neighbors and couples killing time post farmers market. Hopefully, one of the strangers taking the time to view your home will be the next owner. Most people are familiar with how an open house works. Chances are you have attended one. However, it is unlikely you have attended a broker open house unless you are a real estate agent.
A broker’s open house is similar to a regular open house in many ways but has some very important and distinct differences. These differences change the purpose of having an open house. Along with offering various benefits, a regular open house can not provide.
It may be a little intimidating when your real estate agent first brings up the idea of having a broker’s open house. Let us assure you hosting a broker’s open house will only be beneficial. Your house will be off the market in no time when utilizing this sales tactic.
What is a Broker Open House?
The concept of a broker’s open house is almost identical to that of a regular open house. The only difference being who is on the guest list. When hosting a regular open house, anyone from an out of town buyer, to nosey Nelly from 3 doors down, could walk into your home. Perhaps sit on your furniture, while loudly critiquing your home. Now, these scenarios may sound like some of the worst-case, but in reality, they tend to happen quite often. Situations like these do not, however, happen when hosting a broker’s open house. At this point, you are probably wondering what are these amazing broker’s open houses? Let’s dive into it.
During a broker’s open house only buyer’s agents and other real estate industry professionals are invited to attend. No one will be rummaging through your personal belongings, or being rude about the outdated china cabinet you inherited from your Great Aunt Ida. Once the invited buyers’ agents arrive, they will tour your home in the hopes of determining if any buyers they are representing would potentially be interested in buying your home. If they believe they have a client that would be interested in your home, they will contact your agent to set up a private showing. While this may not seem like the most direct path to reaching buyers, it is, in reality, an extremely efficient way to contact buyers who would seriously be interested in purchasing your home.
Buyers’ agents are trusted by their clients, and they (should) know exactly what their clients are looking for. Therefore, by hosting a broker’s open house you are potentially indirectly getting in contact with many serious buyers. More than you would say for a regular open house. There are many benefits to hosting a broker open house. Even if none of the buyers’ agents who attend are able to bring any interested clients back for a private showing. If your agent suggests hosting a broker’s open house, it is best to take their advice. You truly have nothing to lose utilizing this selling method.
How Does It Work?
A broker’s open house is truly just another selling method. Your agent has this option when trying to sell your home, and get you the best offer possible for it. A broker’s open house is meant to debut your home to the real estate industry. Use this tool in addition to utilizing online marketing systems, like the multiple listing service. These events are most often held within the first few days a house goes on the market. Everyone involved has the same goal. To quickly find a serious buyer, or preferably multiple serious buyers, and get your home off the market as fast as possible (for a competitive price). Hosting a broker open house will also hopefully eliminate the need for you to host a regular open house at all.
There IS Such a Thing as a Free Lunch
A broker’s open house is typically conducted on the afternoon of a weekday. This is because buyers’ agents are usually busy on the weekends working with their own clients. This timing is also great for you though. Chances are you will be busy at work during the time of the broker open house. You will not need to find a place to hideout away from your home (or worry about how everything at your house is going). Listing agents may also offer a free lunch to any agents or professionals able to attend. Offering free lunch motivates agents to attend and creates a relaxed environment. Real estate industry professionals in attendance can eat, catch up and discuss potential clients that would be interested in your home. Possibly even give constructive feedback on how they felt the showing went.
Benefits of Hosting a Broker Open House
There are numerous benefits to hosting a broker’s open house. Some of which, you are sure to enjoy. Even if you do not find a buyer for your home through the event. The benefits received from hosting a broker open house greatly outweigh the costs. Even if that means you have to buy lunch for a bunch of agents. An event such as this one is definitely worth considering when you are selling a home. Chances are, your agent has already recommended it.
It is understandable to be a bit weary of the event at first. You may not know anyone personally who has hosted a broker’s open house, and you may be apprehensive due to COVID-19. Don’t fret. Your agent will walk you through everything that will happen at the event. They will ensure social distancing is adhered to and even provide crowd control products such as queuing stanchions and stanchion posts. And will hopefully ease any concerns you may have. Truly there is nothing to dedicate time worrying about though when hosting a broker’s open house. Everyone in attendance will be a real estate professional. All attendees have an interest in making all parties happy.
For most listing agents, and sellers alike, the number one benefit of hosting a broker open house (aside from hopefully finding an agent representing a buyer who ultimately purchases your house) is the feedback you will receive from all agents in attendance. Every real estate professional in attendance at your event will be able to provide you with helpful and constructive feedback on how to make your home more attractive to potential buyers.
This could include advice on how to improve your curb appeal, or perhaps a suggestion to remove any remaining personal items. You may also get feedback on the price of your home. Any advice or suggestion should be welcomed and seriously considered, particularly if multiple agents provide the same feedback. The buyers’ agents in attendance know what attracts buyers to listings. This can only help you to sell your home faster and for a great price.
Receiving helpful feedback can be made extremely easy. If your real estate agent chooses to use technology to make the process more efficient, that is. Pro Agent Solutions provides an easy way to follow-up with agents for feedback after an open house or showing. There is also a free 14-day trial. With Showing Pro, all showings are automatically downloaded from your lockbox and buyers’ agents are emailed the best real estate feedback questions and realtor feedback forms. When one of the buyer’s agents fills out the feedback questionnaire, you and your agent will receive a copy of all the results. Thus allowing for the efficient gathering of constructive and honest feedback.
As you may have gathered, a broker open house consists of inviting many buyer’s agents. Each of these agents represents a wide and extensive range of buyers. They are the first wave to view your home. Now, this can be amazing for you as the seller. This is a real possibility that you will be able to find an interested buyer from this event. There is also a real possibility you find multiple interested buyers though. This would be the most sought after scenario your real estate agent was trying to secure for you by hosting a broker’s open house.
If your agent is able to secure more than one interested and dedicated buyer, the buyers will then have to compete with each other. They may attempt to outbid each other for the privilege of owning your home. This increased demand and competition for your home drives up the price, and in the end, you walk away with more money in your pocket.
Broker’s open houses allow you to capitalize on the budding interest and curiosity one has when a new home goes on the market. Broker’s open houses create a sense of urgency because it is clear that many experienced agents know about your property and could have clients that would love it. Thus potentially starting a race to see who could secure the property first. At the end of the day, the broker’s open houses are excellent at creating the demand for your house that you are sure to benefit from.
Preparing for a Broker Open House
You will prepare for a broker’s open house very similar to the way you would prepare for a regular one. Below are only a few things you need to make sure you are aware of when preparing for a broker’s open house.
- Ensure there is no clutter and the home is as clean as you can possibly make it.
- Buyer’s agents in attendance need to clearly see the features of your home, as well as give you constructive feedback. If your home is not clean and decluttered that will be the center of every buyer’s agent’s feedback
- Allow natural light into your home.
- The presence of natural light is extremely important to a majority of homebuyers in today’s real estate scene. You should be showing off the natural light your home allows in.
- Remove all personal items.
- Personal items, like family photos, make it difficult for buyers to visualize themselves living in your home. If buyers are struggling to see themselves living in the home you are selling, it is sure to be on the market much longer than you would prefer. Even though it may be hard to pack all your sentimental items away before your actual move, for your sake it is truly the best option.
Your goal should be to make the best first impression you can. Help all the buyer’s agents that attend the open house will feel confident telling their clients about your home. The better the impression you make, the more likely buyer’s agents will recommend your home to their clients. In turn, making them into potential buyers for you.
Getting the Best Possible Price
Trust your real estate agent when they recommend a broker open house. This type of marketing obviously has many benefits, including driving up competition and demand for your home. You can trust that only real estate professionals will be in your home. You will be able to receive helpful and constructive feedback on how to improve your home and more. This is truly an opportunity that you do not want to find yourself passing up.