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Broker's Opens...Are they worth the time and money?

I recently saw a Broker's Open flyer for a modestly priced home which made me wonder how many people out there are holding broker's opens for homes this type of home. I was of the impression that a broker's open for a home that is a typical "run of the mill" home with no outstanding/unique features or is one that wouldn't qualify for the "luxury home" designation wouldn't really warrant a broker's open.

It seems many people use the broker's open to socialize or grab a free bite to eat or drink and I think that would be the case for a home that really doesn't have anything special to offer...

What do you think about broker's opens? Do you hold them for any type of property or do you have "prerequisites" to determining whether or not to hold one? Do they produce results? If so, how would you say they compare to an open house?

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Today!!!!

Chanda Barrick, REALTOR®
Keller Williams Realty
(O)317-271-5959
(C)317-472-6882
(F)317-297.2383
www.chandasellsindy.com
IndyPropertyShop.com

Posted by Chanda Barrick REALTOR (Indianapolis/Surrounding areas) on 09/18/2009 09:08 PM

Comments (64)

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64 Comments on Broker's Opens...Are they worth the time and money?

SEP

2009

I think they do a few things....which probably don't have much to do with selling the house. it is a way to socialize with local agents, get them to know you and vice versa, that builds relationships in your local area. It also showcases you to neighbors who might be interested in selling....and makes your sellers happy. It's a lot of PR....but this is a referral/relationship business, so I think it's very valuable.

I think they are, i have actually seen potential buyers walk in or other realtors who may have clients

Chanda,

Our association has a tour of homes every month. I put all my new listings ,regardless of price range or what they have to offer, on the tour and also use this as a marketing tool to win the listing. I tell sellers if agents see the home they might think of a buyer. So to answer your question , I say yes they are worth the time and money! Sellers like to see agents work for the commission!

Thanks,

PS love your Panda , Chanda!

We count the broker's open house as part of our listing presentation. We offer food and a drawing. It gets the word out to the other realtors in the area. And your seller feels they've gotten a jump start on their listing.

It's interesting to see that they do seem to produce some results. I know they can be expensive to hold which is why I was curious as to their success.

Tracy, now I think that's an awesome idea...I don't think we have any tours here in Indy...

P.S. I'm glad you "get" the panda. :)

Interesting responses, not what I expected. I think I will start attending and scheduling more of these.

Chanda - I think Karen did an excellent job of summing up Broker's Open's.

I am doing open houses for an invester who has two vacant homes that are not selling. I can give it 3 hours a week and at least let him know I am out there trying. I do get people in, some who are really looking and some just curious. I think it's not a bad thing for propesctive sellers to see you are out there working hard.

Chanda, I have held brokers open just to get realtors into a property who may have missed seeing the house on property tour.

I think they can be done without a lot of expense. Our board holds them weekly, and I see many different types of homes being held open.

I have yet to attend one of these, but I think that I might after reading some of the comments here.

Hi Chanda. It's popular in the Tampa Bay area. Seems to be food focused.

We had one today for an agent in our office on a $4.9M house. I really don't get these. They are nice to go to and socialize and you do get a better idea of the house. I find them the most effective if there are several homes in a subdivision. They do seem to be food focused as Lana said before me.

It's been said...."feed them and they'll come"....I guess, referring to us agents! I have hosted broker opens with food and it has brought in some agents -- nothing overwhelming but some traffic through the house. Some are previewing for their buyers, others looking for food, some just looking for socialization and likewise I've done the same. I do think that two good reasons for attending broker opens are first, if it's your town/market/area you need to be familiar with every house in your direct market, your competition if you have a listing nearby, etc. Second, if its your office's broker open and you have floor time, you may sound pretty dumbfounded on the phone if a floor time call comes in and you have no idea what the house looks like and are reading write off the mls sheet which the buyer, themself, could've done without your help. I have definitely slacked during the summer but will resume attending broker opens now that the fall is coming!

Karen Parsons hit the nail on the head! I couldn't agree more. -Cory

For me, it doesn't matter the price of the listing. For my buyer's sake, I have to know the inventory in my neighborhood so I look at as many homes as possible. On the listing side, my Seller thought the Broker's Open held more promise than the four open houses done prior. The agent's comments were helpful and even made it easier to ask for a price reduction.

SEP

2009

There are a lot fewer in this current business climate than there were a few years ago. But honestly most agents who are active, are so busy they don't have the time to devote to a brokers open tour that consumes likely a half day - not in this market.

I go for the tour, preview a newly listed property, if it's a good place let my clients know about it and then I stay for the food!

I think Broker's Opens are the most important open houses you can do. It's the agents and brokers who are going to sell the house (obviously). I think in any price range a Broker's Open is important, just to get agents and brokers to preview your appropriately priced listing. The food and beverage are enticements . . . and the socializing is true networking. They are definitely worthwhile.

I like to partner with several other agents who have listings in the neighborhood. It really helps to get the word out and buyer's agents know they can view 5 homes in the immediate area.

To your other question, it can get a little pricey sometimes, you just have to get creative! We've offered rotating lunches - appetizers at one home, sandwiches at another, desert at another.

I would love to attend more REALTOR open houses. Time and scheduling conflicts always seem to get in the way. Maybe I should just make the time. Where does that fall in the 80/20?

This is a good question. The responses are informative and allow one to see the REALTOR open house from a different perspective.

Our office has broker open's every week. Some of the houses are spectacular, some aren;t. Either way, it gives me a chance to preview inventory, see new neighborhoods and tuck away names and information - for me and my clients. I say YES.

Any house is easier to sell after you have seen it...that disregards the price...agents who attend may have a buyer that minute or the next...it familiarizes another audience with the lisitng...limit to luxury homes...why ? There are features in every home that can be promoted,...and this is one of the best forums in which to do it.

I agree - Karen Parsons is exactly right, they are great for PR with your seller and other agents. You never know either, they may help you sell a house. I attended an agent tour earlier this summer and my clients ended up buying one of the homes on the tour.

Wow, the views here definitely aren't what I expected. And to be honest, they make total sense!

Gina, you make a good point about knowing inventory.

Kerry, you make a good point. I also think it would make more sense to team up with other agents to hold multiple houses open at the same time. I think it would yield better results and also help agents on the buying side get a good feel for what's out in a specific neighborhood.

It seems odd that I see various posts about how an open house is a waste of time, but it seems the views about broker's opens are a bit different. I was never opposed to open houses and now my views of how and when to hold a broker's open have changed.

Interesting dialog, thanks all!

I go to see the inventory in my market and to network with other agents. Clearly, if I have previewed a house during a Broker's Open I will have a vivid picture of that house in my mind when working with potential buyers.

I think it is good for building relationships with your fellow Realtor's int the area, and they may have a client that your home is the perfect fit for.

Chanda,

I got tired of spending money to feed colleagues who had no potential buyers within that price point. Came up with a "HomeAndLunch" tour where I set a Saturday to give the agent and his or her buyers lunch if they tour the home.

Chanda:

I too agree with Karen Parsons (#1 above). OPEN HOUSES be they for the public or brokers has both marketing and advertisement advantages. You never know where your next client or buyer is coming from.

Irene, now that's a different concept. Have your "HomeandLunch" tours produced results? That would definitely make sense because in the end, it;s all about what the buyer truly wants. We may preview homes and think "Nah, this isn't something my client would be interested in..." when in reality, it had that one "it" factor that makes it perfect for them and they'd only know it if they saw it....

Like a lot of other agents have said there are multiple reasons to hold one, I go to see the inventory and maybe see a unique property.

I have not had a Broker's open in over ten years. I don't go to them unless they are in an area I am unfamiliar with and I have the time. When I go to them which is rare, I never see producing agents, what I see is people looking for a free lunch, and most of the time they head straight to the food. They also might come if you bribe them with a cash drawing. I would add I haven't had any seller ask me if I do them. They are more interested in internet marketing.

Joe, you also make valid points. I haven't been to any broker's opens as none of them advertised have been in the areas that my clients were interested in; and for me personally it would be a waste of time and gas driving to the opposite side of the city for some free food and conversation. I honestly wouldn't feel comfortable going unless it truly was to look at what the home would offer my client...

I would hope that if I held a broker's open it would bring agents who had clients that were at least interested in the area of the listing...

I also agree that clients just want us to do the best we can to market their home. Many want an internet presence, others want open houses, etc...I guess it all depends on the client.

I have found if I promote heavily, and team up with other agents with listings in the same area it draws more attendance. I am looking for other agents' opinions of the property, price and presentation.

We have two weekly broker tours: one for our own office showing new listings (and some pre-listings) and one our MLS promotes for all members in the region. They are scheduled for the same times every week so we can plan on them. For our office tour, we pair up and share thoughts on the property. These tours give us the opportunity to really know our market and be better able to find properties for our clients. The homes on tour are at all price points -- they are mostly new listings or significant price reductions to remind us about the home.

Does food help draw brokers? Maybe, but there are plenty of homes on the tour without food offered. I think distance is a greater factor -- I am more reluctant to drive 20 miles even if there is food or a drawing!

I don't think price point has anything to do with it. It is getting exposure for your clients property.

I think it depends on the locale. Broker opens have proven to be useful to me. Agents who are lingering over the buffet table have the luxury of time to truly view the home. They may notice upgrades, improvements or unusual features that they would not notice if they had dashed through the home.

I try to have all my listings toured by my own office as well as a network group I belong to for agents from all over town. But if a home is one of those that really needs to be seen in person to be properly appreciated, despite photos galore on line, then a broker's open can sure help get additional agents inside & familiar wtih it. And I agree with the comment about combining efforts with other agents with nearby listings - we call them progressive brokers opens & each house serves a different course of the meal - definitely higher turnouts with those since agents get even more "bang for the buck".

Chanda - I do think they have value, depending on the property. I usually do one for each new listing (the exception is my newest in a gated 55+ community) and let sellers know why I am. They are inexpensive (I don't) do food adn a good way to meet other agents. In our area they are pretty common and a good number of agents do them adn attend them. I find them useful to prevew properties quickly and easily.

Jeff

My wife's office doesn't do house tours anymore - they watch virtual tours in their office on the jumbo screen.

Chanda,

I have to agree with most of the comments made. Brokers open are a great, PR, marketing, socializing, eating, networking, listing presentation and just plain old nosey tool. Love em!

Chandra: I personally think they are a waste of my precious valuable time. I preview homes that target my existing clients’ needs.

Broker tours were great in the days in big fat MLS books with little pictures but with the internet they are a waste of time. Some local agents just see them as a day out to get lunch, others see them as opportunities to recruit agents. Local big name turned up trying to recruit one of my agents on her tour, they made a hasty retreat when they found me attending also! My agent only did the tour at the request of the seller.

I have to say what Karen Parson said is pretty much the real reason why you do one she summed it all up

Thanks for the post. I have wondered a out broker opens as well. They make more sense from a history perspective. Now a days with the Internet Manu of my clients already have a list of houses they found and want to look at.

Chanda:

I like having broker's open houses. It gets other agents into my property, it makes my clients happy and I get to showcase my advertising goodies such as candy bars and bottled water. I want the feedback for my clients, also.

If it's a nice clean property I will do them as it gives many agents the opportunity to see the property in a short amount of time. It also brings in the neighbors who can be a source of future business.

Chanda,

We do broker's open houses every week in our area. Unless the house is terrible we promise it to our sellers. It is a great way to get exposure and have agents from other companies preview your home. Yes, it is a social event but a work related social event. It's nice to spend time with your fellow associates in a more relaxed atmosphere. And almost every time, you remember that you do have a client for that house. Probably someone you put on the back burner and forgot to call.Now you have a perfect reason to re-connect.

Cameron makes a good point...Again I haven't attended a broker's open so I don't know, but do you also allow people that aren't agents to tour the home on that particular day even though it's a "Broker's" open???

As with buyers open houses, in our market, they seem less and less effective. We have caravan every Wednesday. Basically, only two offices are loyal attendees. Another sometimes shows up. But the rest do not. In many cases, the companies only visit their own listings. This was more understandable when there were 30 listings each week to see and it was impossible to get to all of them. So of course you would go to your own offices listings first. But now, there are sometimes as few as 5 on the list, yet the same two offices come, and most of the others never do. Though ironically, they will complain to you later if they do not see you at theirs.

Personally, I try to reciprocate with any agents that faithfully come to mine. (Yes, I still do them for the seller's sake and I usually serve garlic shrimp, meatloaf and baked potatoes, or something to draw people over). If there are agents in my office that do not ever come to mine, but there is an agent from another company that always does, I feel it is only fair to return the favor and I go to the other agent's listing.

So if you do have agent open houses and have a poor turnout, check your history and see how good you have been at visiting the other agents' events. Do not expect them to come to yours if you do not go to theirs. Turnabout is fair play. Offering them food always helps too.

Chanda, We have brokers open every week. I put all of my listings, no matter of price, condition or location on for brokers open. I personally think that "run of the mill" homes sell just as easy as those that are not. Besides socializing with other agents, brokers open is a great time to learn the market and its inventory. Brokers open is much easier than inconveniencing the homeowner if an agent needs to pre-view the property for a potential buyer.

I like Broker Open and wish I worked in an area where the agents were more invloved in activities like that. Do them... they are great exposure for you and will get you more listings. And who knows you may even sell through it.

Congratulations on another feature! I do attend broker opens in my area as often as I can. They all seem to offer food but I never have eaten at one. I usually don't have the time to sit and visit. I just want to tour the home and get on with my day. I find them useful even if I do not have a client looking for that type of home. I feel better prepared when talking to new clients if I am familiar with what is on the market right now.

Have a great day.
Irene :-)

Hi Chanda~ We do broker opens and we always feed them! Just last week I did one and served homemade pizza pockets, brownie bites, pumpkin bites and drinks. We had at least 50 agents show up! The food really helps lure agents there. Who doesn't like to eat?

Definitely! I was holding one open when someone walked in and used me to buy a high-end house. Even when they're run-of-the-mill, it's customary in this area, even multiple times.

In our area, BO are NOT well attended, food or not. I did one a while ago on 2 higher end homes in one development. We had food at both, drinks, shrimp, fruit, desserts, etc. Each person who came through got a gas card and also a bottle of wine.

Out of 300 agents invited, 4 attended.

I didnt read many of the posts and hope Im not just adding the same sentiments but one must ask what is 'worth it?' How many sales do any of you know came as a result of the brokers seeing the prop inside?

Even in the early 90s I remember it was usually about who spent the most on food. I believe broker opens are now outdated and mostly useless.

In theory we show what we've seen. Most of the Broker's Open Houses in my area attract many agents who are not busy that given day with the promise of lunch and door prizes. My co-workers that have the open houses on a regular basis say that they have them to make their sellers think they are doing everything they can to sell the home. I used to have them occasionally, but haven't had one in over a year....... I don't know that they ever produce buyers. I never had a sell from one, but I certainly spent quite a bit on door prizes and food to feed the masses!

SEP

2009

When the market was better, there weren't many broker opens in the area, but this summer there's one or more about every week.

One idea that I adopted that is helpful is a survey for the Realtor to fill in about the condition, price, and staging of the home and when the survey is turned in, Realtor is elgible for a drawing for a prize!

At a recent Broker Open, I had fifteen in attendance, got 11 surveys and my seller was very interested in reading the surveys afterwards. The prize was a $50 gift card to Pier One.

OK. I'm going to admit this in advance. I'm guilty of a copy ans paste comment on this one, because I just responded on a re-blog someone did of your post. Sorry! So here's my answer (again)....

"Have you read Jeff Dowler's post about the Broker's Open he recently attended? If they're all like that one, then I'd never attend one! That being said, we've always had very poor attendance in our area. The only way they work well here is when a bunch of agents with similar listings get together, and have food at each one, and make sure each brokerage mentions it at their weekly sales meeting, and have a mortgage broker or title company offer a drawing for a prize at the end, to agents who have been to each house and had their ticket/card/flyer stamped by the agent at that listing." =)

Chanda,

Can't say I've had wonderful results from my HomeAndLunch tours but my invites have gotten a lot of attention from other agents. My homeowners have been thrilled that we're trying new and different methods of marketing. Plus, I'm not spending a bundle to feed colleagues with no customers for that home.

So, yes, I say they are effective.

Funny, it seems the tides are turning at the tail end of the comments. I guess it depends on location too. It seems in some areas these are common practice. I didn't realize there were offices that regularly went on tours. I like that idea.

Erica, OUCH! That would be very frustrating! I thought the higher end homes would be better attended...

Beverly, if I ever do decide to hold one, I think the survey idea is awesome. At least you'd have some written feedback.

Lisa, I'll take a look at Jeff's blog...

Irene, I do like the idea that you don't have to spend as much to hold this type of open. I can understand doing these things when you have plenty of money to spend, but many of us don't have a boatload of money to spend on something that would be considered a networking/socializing event...

TO the commenter above who is courteous enough to RECIPROCATE and attend BO's of agents who attend his.... BRAVO! That is wonderful.

Chanda--I was stung by my last BO. I am an independent boutique office, and I feel I was shunned by the dominating office in town, with 100 agents. It is interesting to see who DID show up.

I set the time to be convenient for people who I specificially targeted--agents who work that subdivision and not only mailed out invite, emailed invites.... but made personal phone calls to ALL agents living/working that area.

The agents who DID show up...

- (a man) 1 drove 30 miles to get there (he was curious and said "you never know when I have a buyer for this"

- (a man) 1 lived in the area and said he just wanted to see the inventory

- (a man) 1 works for the big company and didn't "get the memo" not to attend--he told me that point blank!

- (a woman) 1 works for the big company and is FRIENDS with one of my agents, who also had her house on tour so she said friendship trumps company any day.

Interesting, eh?

Chanda - Since the BOOM market many agents that entered the REAL ESTATE market have no idea of what models have been built in which neighborhoods. I think that Brokers OPENS are a valuable tool for several reasons.

1. You get to eat and socialize with other ACTIVE agents in the area to get a true pulse on the market. Maximizes possible viewings to secure a contract quicker.

2. It teaches NEW agents what the current inventory is , so that when they meet a new Buyer they can say they actually saw the house and skip shoeing that Buyer 20+ houses before they purchase.

3. All Sellers like to see their home on TOUR , no matter if it is a $50 K Condo or a $2M Estate. It goes a long way in keeping the relationship with your Seller a positive one.

So keep the tours on your schedule , meet other agents in your area and learn the inventory.

As for the virtual tours mentioned by another agent , just not my cup of tea, I need the house to "speak" to my clients. A monitor screen can never replace the feel of walking into your NEW (to you) home.

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Chanda Barrick REALTOR (Indianapolis/Surrounding areas)

Indianapolis, IN

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Keller Williams Indy Metro West

Address: 8102 Kingston St., Suite 400, Avon, IN, 46123

Office Phone: (317) 271-5959

Cell Phone: (317) 472-6882

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My plan is to provide neighborhood profiles for some of the more popular neighborhoods/communities in and around the Indianapolis area. In addition, information regarding the current market conditions in and around Indianapolis and any other news or information of interest.

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