What Is A Broker Open House And What Does A Broker Do?
Lee Huffman4-Minute Read
January 28, 2021
When you're selling your home, many real estate agents recommend hosting an open house to lure potential buyers. However, before the first potential buyer tours your home, your Realtor® may hold a broker's open house.
This serves as a preview for other real estate agents to receive feedback and encourage more offers. In this article, we'll share what a broker open house is and explain what a broker does.
What Is A Broker's Open House?
A broker's open house is a private showing held by your listing agent exclusively for real estate agents. This gives them an opportunity to preview your real estate listing before prospective buyers have a chance to view your home. Agents typically schedule a broker's open house before it goes live on the Multiple Listing Service (MLS) or in the first few days afterward. In the age of COVID, this sneak preview can minimize the number of people touring your home and generate an offer quickly.
In other words, a broker's open house highlights the bestselling features of your home to real estate agents so that they will be more likely to bring their clients to your home. Potential buyers are not invited at a broker's open house.
What Do Brokers Do?
As you navigate the home selling process, there are a lot of names and titles that you may not be familiar with. You probably know what a real estate agent does but may not know what brokers do. A broker is a person who oversees the work of real estate agents and bears the responsibility for their transactions. To become a broker, you must take additional courses and hold higher-level licenses than a standard real estate agent.
Although brokers oversee the real estate agents that work underneath them, they may still have their own clients and facilitate their own transactions just like the average real estate agent. Brokers may own their own firm or choose to work under another broker.
How Do Broker Open Houses Work?
A broker open house is very similar to a traditional open house. The biggest differences are the number and type of people who visit, the day on which it happens, and how long your home will be open.
Broker open houses are targeted at real estate agents and other industry professionals. It acts as a preview to encourage offers before your home's multiple listing service (MLS) profile goes live and to showcase your property in a private setting without potential buyers overhearing agents discuss the property.
While traditional open houses are on Saturdays and Sundays, broker open houses usually happen midweek. Often, your real estate agent will host the walkthrough right after the local agent meetup to generate the most buzz and highest attendance.
Unlike traditional open houses which can last for several hours, a broker open house is held during a smaller window of time, which reduces the inconvenience to the seller. By holding the broker open house midweek for just a couple of hours, many sellers won't even notice that it happened. This is because the sellers are at work or out running errands without having to be away from their home all day.
Benefits Of A Broker Open House (For Agents And Sellers)
Now that you know what a broker open house is, let's discuss the benefits of having one.
Feedback From Other Agents
During a broker's open house, your listing agent can receive feedback from buyers' agents about the pros and cons of your home. With this valuable feedback, you have the opportunity to address their concerns before potential buyers tour the home.
Generates Demand From Multiple Buyers
Sellers and listing agents love bidding wars because it can drive up the ultimate sales price of a home. When real estate agents tour a listing during a broker's open house, it can add to the buzz that a property receives when it first goes live on the MLS. This added excitement can lead to multiple offers and a higher price.
Reduces Time On Market
Rather than waiting for potential buyers and their agents to find your home through their search, proactively scheduling a broker's open house can speed up the process. The sooner a buyer's agent knows about your home, the sooner they can match it to one of their buyers and submit an offer.
Limits Your Time Away From Home
Homeowners get frustrated with having to tidy up and leave their home every time someone wants to tour their property at a moment's notice. And this frustration is magnified when they have to be away all weekend for an open house. If a potential buyer can be found through a broker's open house, that means you won't have to deal with spontaneous tours and all-day open houses while the house is up for sale.
Less Exposure To COVID-19
The fewer people that tour your home, the less likely you and your family will be exposed to the coronavirus. Holding a broker's open house can lead to a quick sale, which means that it is less likely that someone who is sick will be walking through your door.
The Bottom Line
When you’re getting ready to sell your home, ask your real estate agent about a broker open house and whether it’s right for your selling strategy. There are many advantages to having one, like feedback from agents, less time on the market, and the potential for multiple offers. If you aren't already working with an agent, use our resources to learn how to find the best real estate agent for your needs.
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