Before the internet, home search sites, especially the Multiple Listing Service (MLS), and broker open houses were the only ways to have agents share available listings with other agents…
You may flip through Instagram or Facebook and notice many agents posting pictures of themselves at broker open houses.
Broker open houses are really a thing of the past that agents and their brokerages still use to impress the seller.
The truth is that open house is not as exclusive as an agent will make it seem. In fact, a lender or title company, trying to get new agents’ business will usually organize a broker open house caravan, not a brokerage.
Who goes to broker open houses? Caravans of newly licensed agents, in each office, trying to motivate their new agents. Escrow agents trying to get your listing agent to use them, when the house obtains an offer and opens escrow. Lenders trying to get the loan for the new buyer.
Pre-internet made home searching harder, or next to impossible, if a buyer didn’t use an agent. Regular neighborhood open houses were effectively utilized far more in the past than today.
Today regular neighborhood open house are responsible for less than 6% of all homes sold and those percentages drop each year.
Before the advent of the MLS, real estate agents were unaware of all available properties for sale. This hurt home sellers because many buyers who may have been interested in their property were unaware it was on the market for sale.
Today, search engines will automatically send a prospective buyer all the properties matching the criteria they set in their personal search bar.
The criterion set are: bedrooms, bathrooms, PRICE, location and square footage of home and lot. (Notice, not mentioned as criterion is who the listing agent or office is). We’ll address that in the next myth section.
With today’s internet world, when a buyer’s search criteria matches a sellers home listing criteria, they will see that home weeks before a broker open house.
Usually a broker open house is on a Wednesday or Thursday. They’ll have a list of maybe 10-15 homes to see in a four hour peroid -not just yours. So what’s the point? Don’t be fooled into signing a contract with an agent who pitches broker open houses as part of the song and tap dance to get you to sign.
The truth is, this is an archaic sales tool, which is now nothing more than an industry networking event… save the anxiety and stress of having your house cleaned and toured for the occasions when your agent calls to bring over a bonafide approved buyer!