Prudential California Realty
A Berkshire Hathaway Affiliate
Beverly Hills, CA
Some agents/brokers have stated to sellers that Open Houses don't sell homes. That is an untrue statement. Until it happens to them they will continue to say that I guess. If you do Open Houses enough the chances are greater. Its happened to me more than once.
On a side note: it is easier to get an Open House from an outside agent/broker that has taken a listing in your area. Look for the location of their office or by the area code of their phone numbers. The likely hood of them wanting to come out to an area that they are less familiar with is very low. They tend to give up their listings more often than a local agent/broker.
My take especially @Jim.
Have a recent encounter with a client of my friend
who is the listing agent. The house is vacant and my friend
told owner he will do open house friday, saturday, sunday.
That's a very toough propostion especially sat and sun.
Anyway, he asked me to do one on a sunday and the
owner dropped by and was surprised to see me holding OH.
I explained to her it's common practice to ask other agents
when they can't do the OH.
I just advised her to call my friend since there's lack of
communication there. But I called my frined right away
to give him the heads up.
No biggie, she understood.
Doing OH is both a favor and a help for more exposure.
There's certain responsibilities involved especially when you open the door.
You have to be aware of the risk. Somebody might be in there, a guest might
be there to do harm, there might be a potential hazard, ie. gas leak. burst pipe, stuff stolen(encountered this on one and called agent right away), there's different
things you have to be aware.
Then when you close up, be sure it's buttoned up real good because if anything goes
wrong you're liable.
One agent even asked me to submit a copy of our E & O insurance before
he let me do the open house.
Enjoy doing Open House though.
Century 21 ACtion!
This is very common, and is done by a direct call to the agent.
An Agent who has Multiple Listings or is tied up on the weekend showing Buyers, hence
s/he cannot be at several places. Holding Open Houses professionally is important to the
One does not have to share Leads nor Commission. Its a win win for both agents.
It depends upon the brokerage as far as Open House is concerned. If I have several listings at a time, there is no way I can open all of them, so this is where the new agents can have the opportunity to work and meet potential clients. This is something I would talk to the agents about at our weekly office meeting and arrange.
I always give the buyer leads to the agent who holds the Open for me. They can use their own signs and advertise themselves, and if they are able to close on the property, they would recieve the buyer agent commission. It works out well and everyone is happy!
P.S. Yes you can also do another brokerage/agent Open House you arrange with the agent about signs and clients.
Commissions are also very much negotiable betweeen buyer and listing agent. If you present an offer, I would expect to get the full buyer side commission. If you've arranged a referral fee, that's a different matter.
Agents can and do sit open houses for agents outside of their office. The ganet sitting the open house gets any leads generated from the open house and of course if they get a buyer, they can represent the buyer.
Kawain Payne, Realtor
So, when you sit at another company's listing for the open house, I assume you have no fiduciary responsibility to the seller..........and would act as a buyer's agent for anyone who stops by the open house. You would then be free to critique the house as far as pricing goes, or in any manner you cared to......
It surprises me that sellers are comfortable with this.
Do you come across any sellers who don't endorse this practice?
You sit on open houses for listings from OTHER companies??
That's highly unsual....in fact, I have never seen that happen where I am.
Mike - just curous............are you an agent?
I noticed you asked the same question on zillow.........if you're an agent, how do you handle this?
The way I have worked it is this:
In return for holding the open house, the sitting agent is entitled to any leads that he or she develops from potential clients attending the open house. If someone comes to the open house and wants to buy the house, then the sitting agent can represent the buyer and receive the buyer's side of the commission from the sale. So, in other words, leads and commissions are not shared, they go to the agent holding the open house. Obviously, the listing agent still receives the listing side of the commission from any sale of the home.
After the open house, the sitting agent calls the listing agent and reports on the results of the open house, how many people came by, what they thought, etc.
Best of luck,
Loan Officer and Realtor
ERA Buy America Real Estate Services
A potential buyer who comes to that open house and decides to work with me, if that turns into a closed sale, either on that property or something else, that commission would be mine. However, it's not as easy as it sounds!!
Sometimes if an agent isn't readily available, the listing agent will put-out a similar request.
The whole purpose of an agent sitting someone else's open house is in order to develop client leads. So the volunteer agent sitting the open house, unless they've discussed other arrangements, is entitled to any and all leads that are developed from the open. If the "sitting agent" is fortunate enough to meet an unrepresented buyer who ends up buying the house that's share... the sitting agent is entitled to the entire buyer's side of the commission.
Our office manager does a great job at communicating via email to the agents in the office the current listings and availability to partner with a listing agent on an open house.
Basically the volunteer agent holds the open house and then calls or emails the agent the number of visitors, interested parties, and leads. The agent holding the open house keeps any leads for him or her self as a benefit of holding the open house.
Based on my experience..............
An agent volunteers (we can ask for any interested agents via group voice or email) to sit at an open house for the opportunity to either find a buyer (less likely) for that house.......or (more likely) pick up new buyers to work with in the future.
They work the OH and keep any leads they cultivate.
As the listing agent, I would ask them to call me following the OH to report in as to the amount of traffic they had, and to share any feedback.
There have been rare occasions when, in a bind, I have paid an agent a nominal amount upfront to sit at an open house.............that's if I have trouble finding a free volunteer!