Home Selling in 90807>Question Details

Mike Baker, Real Estate Pro in Long Beach, CA

How do agents coordinate when one agent works an open house on another agent's listing?

Asked by Mike Baker, Long Beach, CA Sun May 13, 2012

How does communication work? Is it just inter-office word of mouth? Or is there a more systematic way?

How do Leads get shared? Commissions?

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Answers

22
Jim Olive’s answer
I think this one has been beaten to death, but I would share that sitting an OH for another company can be tricky as it can elicit certain emotions that vary widely from person to person. Some might view it as treason to sit a house for another company, or that you're not a team player, while others would think nothing of it. For me, it's all about the house location and how much traffic the OH will generate (and thus how likely you are to generate some leads).
0 votes Thank Flag Link Wed May 16, 2012
This is very common practice for us in South Florida. If you are hosting an open house for another agent, the leads goes to you. And the profits for any of those leads are 100 percent yours. In order to have a sucessful Open House, you need to advertise the open house in different ways. flyers, mail advertise, e mails, signs, etc. The first week that I started in this business one of my friends ask me to do an Open house for her and that's how I meet my first client. Next day I have two listings and a client looking to buy a house.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
1 vote Thank Flag Link Sun Oct 14, 2012
If you are the agent working the open house the buyers leads that come in to that open house are your leads. If you are on a team the scenario might be different. If there is an up front agreement regarding the leads that come in that could be different.
0 votes Thank Flag Link Mon Jul 1, 2013
It is a very common practice here in our area also, and every agent structures it differently. If an another agent brings a buyer during that open house, the listing agent usually gets that information to follow up.
0 votes Thank Flag Link Mon Jul 1, 2013
We are so tech savvy that agents send out email blast requesting either to sit an open house or agents asking someone to sit their open house. Some agents request a list of attendees others ask a head count and some people want a per cent of the future transaction generated by the Open House. There are not set rules. Each agent negotiates his or her own deals. Hope this helps.

Endre Barath,Jr.
Prudential California Realty
A Berkshire Hathaway Affiliate
Beverly Hills, CA
homes@endrebarath.com
310.486.1002(m)
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Wed Jun 5, 2013
I like the question.. I also like Open Houses. Its free and the buyers and sellers are coming direct to you. I imagine it as if I am a spider, my Open House signs are my web, and the guests that are attracted to the Open House in essence are my food. Well its one way to look at how I put food on the table. TMI, maybe... but over the years I have done Open Houses for other brokers/agents in the area and they have for me as well. All of the leads that are made by the broker/agent holding the Open House belong to that person. The listing agent of course gets the exposure and provides a service to the seller to show that they are marketing their property.
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.
0 votes Thank Flag Link Sun Jun 2, 2013
Hello all!
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.

Roberto
Century 21 ACtion!
0 votes Thank Flag Link Sun Jun 17, 2012
Depends on the situation and the relationship of the agents. It could be inter-office or not. Buyer leads from the open house would probably go to the agent working the open house. The buyer side commission would go to the agent that represents the buyer.
0 votes Thank Flag Link Wed May 16, 2012
Hi Mike

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
Seller.

One does not have to share Leads nor Commission. Its a win win for both agents.

Good luck.
Ruth

http://www.trulia.com/blog/perry_mistry
0 votes Thank Flag Link Wed May 16, 2012
ear Mike,
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.
0 votes Thank Flag Link Wed May 16, 2012
They just call or email and ask the other agent for permission to hold open the listing. Simple as that.
0 votes Thank Flag Link Tue May 15, 2012
Honestly, that's unique to the relatioonhip you have witht the listing agent. Typically, in my experience, when an agent works an open house, they get whatever leads come through.

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.
0 votes Thank Flag Link Tue May 15, 2012
I hope agents from other states will chime in regarding the practice of sitting on another company's open houses!!

Clearly, it's done in California!

See what you learn on Trulia!

:)
0 votes Thank Flag Link Tue May 15, 2012
Hello Mike,

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
0 votes Thank Flag Link Mon May 14, 2012
That's interesting Carlos - yes, it must be a regional practice, as I have never seen it done here....

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?
0 votes Thank Flag Link Mon May 14, 2012
Hi Debbie:

I am in Southern California and have held open houses for other companies as well. I know many agents that do. I wonder if this might be a regional practice as I see that Nancy is from SoCal as well.
0 votes Thank Flag Link Mon May 14, 2012
Nancy, your answer surprised me......

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?
0 votes Thank Flag Link Mon May 14, 2012
Debbie:

I am not an agent. My company serves real estate agents through various open house services, mainly the set-up of signs.

I am currently researching the need for a service that would aid agents in coordinating the sharing of open houses.
Flag Mon May 14, 2012
Hi Mike,
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,
Gene Scott
Loan Officer and Realtor
ERA Buy America Real Estate Services
562-212-2345
0 votes Thank Flag Link Mon May 14, 2012
I hold other agents' listings open quite often, sometimes with companies other than mine. I will call and email the listing agent to see if he/she will allow me to do so, and if they agree, I let them know the date and time I will be at the open house. Often, the listing agents love the fact agents are holding their listings open, it's more exposure for the home. For me, it is a source of meeting potential new clients. I always follow up with the listing agent as to the amount of traffic through, plus any comments from the people who came that I feel the listing agent may want to know.
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!!
0 votes Thank Flag Link Mon May 14, 2012
Agents willing to volunteer for open houses, often let their office know that they're available for open house duty. It could be through a global voicemail message, or perhaps a note posted on the office bulletin board.

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.
0 votes Thank Flag Link Mon May 14, 2012
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Hi Mike:

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.
0 votes Thank Flag Link Sun May 13, 2012
This is really very simple............

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!
0 votes Thank Flag Link Sun May 13, 2012
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