If you've ever put your house up for sale, your agent has most likely encouraged an open house, but what about a broker open house? An open house gives people the opportunity to stop by, ask your agent questions, walk around the inside/outside, get the overall feel of your home, and it helps them determine whether or not they want to make an offer. So what the reason for a broker tour? Let's take a look at what a broker tour is, the benefits and whether or not it's right for your house.
When you meet with your real estate agent to prepare to sell your home, he/she will go through a checklist of things to do before listing your home. How to declutter, staging your home, curb appeal, holding open houses, etc. Maybe your agent mentioned putting your house in a broker's tour. Sounds intriguing but what exactly is a broker's tour?
What is a Broker's Tour?
A broker's tour (aka: broker open house) is essentially an open house for other real estate agents, brokers, and industry professionals. It's another way your agent markets your home. The tour ramps up the interest on your home and might even help it sell faster.
A broker open house is usually held within days of listing your property on the MLS. It's scheduled during the week when agents aren't as busy showing homes to clients, like they would be on the weekend. The open house usually lasts for 3-3.5 hours, food and beverages are usually served and tend to entice more agents to attend.
Home buyers are not on the broker tour guest list. Instead, agents and brokers visit the home (generally from your agent's office), provide your agent with feedback and determine if it's a home one of their clients would be interested in purchasing. Visiting agents are also a good source for determining a fair price for your home. Even if your agent strongly believes in their list price, they may change it based off of agent feedback.
As agents from the broker tour tell their clients about your home, they increase the chances of generating private showings. These clients are given the opportunity to see a newly listed home without have to wait to go to the open house for the general public. This is one reason homes on broker tours can sell faster than homes which only have public open houses or no open houses. Home buyers who choose not to hire a real estate agent may be short-changing themselves by missing out on getting in early on private showings.
When you are thinking about selling your home, ask your real estate agent about a broker open house. If they discourage it, you might want to interview another agent. A broker open house could generate the ideal buyer for your home.