A marketing pitch used by many agents today is the concept of a broker open house to help in selling your property quickly. A broker open house is when your agent holds a luncheon and advertises it to other real estate agents to come and preview the property in order to entice them to show them to their buyers and help you sell your home faster. However, the truth is that broker open houses are a waste of time.
They Don’t Attract Top Producing Agents
Top producing agents are busy. Often too busy to attend a broker open house. The top producing agents are out working with buyers and sellers, won’t have time to preview a property with a broker open house. This will result in agents who have little better to do than grab a free lunch. This will result in a waste of time for you, your agent and extra expenditures in a lunch for agents who will likely never bring a client to see your property.
For sellers wanting a smooth, timely transaction, a top producing buyer’s agent is crucial. Agents producing on average just a few transactions per year can lead to multiple problems during a transaction and more work involved for the selling agent and the seller.
Low Turn Out
In addition to broker open houses resulting in a low turn out ratio and resulting in less than successful agents attending, these functions will only produce (on average) a handful of agents. Since it is common knowledge that the more showings a property receives will create a more competitive environment for a sale, this doesn’t net a possible benefit to the seller. Again, wasting time, money and resources on a small event catering to agents with low production rates.
Losing Potential Buyers
When a successful buyer’s agent is narrowing down properties for their buyer, and your house makes “the list” the agent wants their buyer to have privacy, not walking into a small cadre of real estate agents enjoying a free lunch. Broker open houses can be a massive deterrent to buyers wanting to see the property on a specific date at a specific time. Tying up the house for several hours can cost a seller a sale. Why? Because oftentimes the buyer’s agent will move on to the rest of the houses on the list and will often wind up writing an offer on another home. Ultimately your home didn’t even have a chance, due to it being tied up for a broker open house.
While many real estate agents will pitch a broker open house as part of their marketing plan, it isn’t an answer to selling your home quickly. As a matter of fact, as stated above, it can cost you a sale. Being an educated seller in this market means knowing the facts about what will sell and home, and what won’t. Before putting your house on the market, do your homework, and be realistic about the options available that will actually sell your home, not tie up your time and resources.