A real estate broker oversees the work of other real estate agents or REALTORS® – licensed agents with the National Association of REALTORS®. Because of their extensive network of agents, it’s common for listing agents to use broker’s open houses as a method of real estate marketing for a house entering the market.
When selling your home, many real estate agents recommend hosting an open house to lure potential home buyers. However, before potential buyers tour your home, your REALTOR® may hold a broker’s open house.
What’s a broker’s open house?
A broker’s open house is a private showing held by your listing agent exclusively for other real estate agents. This gives them an opportunity to preview your real estate listing before prospective buyers have a chance to view it. 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.
A broker’s open house highlights the bestselling features of your home to real estate agents in their brokerage or network so they’ll be more likely to bring their clients to your home. Potential buyers are not invited to a broker’s open house.
How do broker’s open houses work compared to traditional open houses?
A broker’s 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’s open houses target real estate agents and other real estate professionals. They act as a preview to encourage offers before your home’s MLS profile goes live. They also showcase your property in a private setting without potential buyers overhearing agents discuss it.
While traditional open houses are on weekends, broker’s open houses usually happen midweek. Often, your listing 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’s open house is typically held during a smaller window of time, which reduces seller inconvenience. This is because the sellers may be at work or out running errands and won’t have to be away from their home all day.
Benefits of broker’s open houses
Now that you know what a broker’s 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.
Increased 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.
Reduced 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 help a house sell faster. 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.
Limited time away from home
Homeowners may get frustrated with having to tidy up and leave their home at a moment’s notice every time someone wants to tour their property. This frustration can be 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, you won’t have to deal with spontaneous tours and all-day open houses while the house is up for sale. Furthermore, a broker’s open house is often fairly short and done during the week as opposed to the weekend, which might make it easier for the homeowner to live around.
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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.
