Don’t be the Little Orphan Annie of the Broker Open House World

Good post John!  I like the color!  I have had broker opens where the Realtor introduces me to EVERY Realtor they know and promote me and my business..have had plenty of the opposite as well! 

John I have done several Broker Opens in the past, but here in Connecticut we have to be careful on how it is done.  Both the Realtor and the Loan Officer have to share equally in the expense, so that we don't risk being in violation of RESPA.  That was brought to our attention while taking classes for the National Licensing test.

Lunch at a broker's open?  Not for me.  I know agents that plan their day around where they're gonna get some free vittles.  I let my lockbox handle those for me whenever possible.

Interesting that your agent partners ask you to buy lunch. Find agent success partners who want to develp relationships with you and who want a win-win circle of excellence referral system and forget the lunch.  It is really about relationships and the home for sale not food. When you provide free lunch the agents with no biz who want free food will show up. Most successful agents are holding open their own broker tour so better to travel the tour and meet all the agents who have the listings as they are the agents who control the market.

John, holding a brokers open tomorrow at www.2034Waterside.com. Wish you were there!

John,

Around here they seem to be spotty if they aren't associated with another event, like an office meeting. Even for a free lunch, most agents aren't willing to make the time. I do like your partnering arrangement.

Rich

John, I agree, lunch should not be a key attraction of a brokers open. I love your idea of educating realtors, instead of feeding them. Being well informed will increase our chance of providing an excellent service to our clients. Great post.

John,

I stopped spending on lunches when I found absolutely NO return. (For example, none of those agents ever booked a showing, although they loved my food!)  Can't say I'd be inclined to try a new loan officer because he paid for the lunch, so I'm glad you're reassessing this investment!

John, I think it's a great idea to bring your literature, in fact, if you are part of the open house event and spend your time, you should.  Many agents, myself included, would probably appreciate some updated insight into different mortgage products. 

Broker's Opens are a big thing in our area. It is amazing how many don't ask thier favorite lender to participate. I ALWAYS have my particular lender provide lunch but mostly because I don't cook. I would encourage more lenders to do the BO as well AND to speak up. During my last BO, the lender did a very nice 2 minute presentation on his company's new programs. He picked up a couple of new agents & buyers from this 2 minutes. Brokers Opens work for lenders too! :)

I like the idea of having information on-hand especially the info on different options available; thanks, John.

Our broker Opens are part of tours that are very specific. Different neighborhoods on different days and tours of very specific properties and price ranges. 3 bedeoms + with park views, or 1 bedrooms with outdoor space. One broker OH serves lunch (catered by a lender) and one broker OH serves dessert (catered by a lender)The properties on the tour are within walking distance.

I always thought it would be better for a lender to attend my public open houses since so many buyers come that don't have an agent, or a lender yet and are not even pre-qualified. I guess lenders don't work on Sundays so I give out their cards and financial sheets they've prepared for my listing with several financing options.

BTW: My mortgage was with Home Savings of America it became Washington Mutual, then Chase.

We usually split the cost three ways..... The Realtors, a Closing/Title company, and a  Lender.  Drinks, light lunch or brunch, and a sweet treat. Some times a drawing for a gift/gas card.  We get huge crowds when there is a drawing for a gift.

John, Thanks for your post...I actually had not thought of getting help with a brokers open house...can be a win/win situation for all!

I'm still amazed that the "real" draw for a Broker Open tends to be food and/or a cash drawing. However, my sellers foot the costs.

As a side note - I found the lavender text a bit small to read.

Great post and interesting insight into the world of Open Houses. 

John- congrats on being featured!  The post also solidifies that we need to have a handul of trusted Realtor partners.  We only have 24 hours in our days like everyone else!

John,

Some helpful pointers on marketing materials for broker opens. Do up a few dozen color flyers featuring the property itself. Take fifteen minutes to work with your Realtor buddy on this. Ask to use their best photo, which is usually the primary listing photo. Then make four columns beneath it. Each column features a loan program and its basic features bullet pointed and the loan payment calculated. Example, determine if its USDA eligible then calculate a PITI using a 102 LTV loan at today's going rate, do the same hypothecating VA loan and then calculate a PITI for an 97.5 LTV FHA loan as well as conventional at 80 LTV. Of course use ur disclaimer (for approved applicants, inquire for more). So there'll be four loan options with payments already closely approximated: Such as 0 down and $1688/mo, 3.5% down and $1544/mo, etc. Make sure the flyer contains ur business card, of course. Place these flyers in the area where the other agents drop their cards. Its a conversation starter and allows you to further elaborate on each option. You can elaborate further when discussion occurs, such as minimum FICO scores required for each, how long they take to get done, etc. It will show your resourcefulness as well as your true eagerness to be an asset to your Realtor team mates. Remember: you're there to help him or her sell that property, not to fetch referrals from sandwich platters! Also, if you want some easy but delightful crockpot soup recipes I'd be happy to share them with you. A Mexican 5 Bean soup, some cornbread, chips and sour cream and paper utensils only cost about $20.00 and really wows them, too.

Good post and best wishes in your continued success!

- Jamie