Should one invite local agents to Open House? - Posted by Carter

Posted by Carter on April 12, 2006 at 14:36:28:

By 3%, I meant only to the agent that brings a buyer. I would definately FSBO it. That would be only .5% less than the agent would make if splitting regular commission w/ other agent. Heck, if they brought a buyer quickly, I’d probably throw in an extra 1% hoping the agent would remember me next time they came across an rehab.

Should one invite local agents to Open House? - Posted by Carter

Posted by Carter on April 12, 2006 at 13:37:07:

Hypothetical situation. I finish a rehab. I want to have an open house. I also would be willing to pay a local real estate agent 3% commission.

Would it be in my best interest to send all the local offices a note saying I will be having an open house and welcome all realtors?

Since I would be willing to pay commission, this would bring many agents through my doors who would in turn hopefully bring many clients through the door as well.

Re: Should one invite local agents - Posted by dealmaker

Posted by dealmaker on April 12, 2006 at 13:45:30:

Kind of funny, but the MAIN reason that agents have “open houses” isn’t to SELL the house that they’re showing, but to FIND BUYERS. The only reason I’ve ever held open houses on my flips is to have a yard sale in conjunction with it.

Where I live 75-85% of the housing inventory is in subdivisions that are either; gated, and/or have restriction on RE signs. Therefor no open houses.

But by all means notify the local offices.

dealmaker

Re: Should one invite local agents to Open House? - Posted by Jack

Posted by Jack on April 12, 2006 at 13:45:25:

Yes it may, but you are not likely to attract to many other relators with them having to split a 3% commission. Why don’t you sell it yourself?

Re: Should one invite local agents - Posted by Carter

Posted by Carter on April 12, 2006 at 14:34:14:

That is only true on Sunday open to the public open houses.

Two years ago, my soon to be wife took a job in another state. I was going to move there after we got married. She bought a foreclosure, fixed it up, we were going to live there happily ever after for at least a year or two. Job went south, and she decided to sell the house. Got one realtor, who didn’t do a darn thing. No open houses, no nothing. This house was immaculate, but all realtors knew it as being that nasty forclosed house. Next realtor, two days after we agreed to list w/ her, during the week, had an agents open house. She sent all agents in area notice, and they came through the house. One week later, one of those agents brought us a buyer. We wouldn’t have had a buyer w/o that agents open house.

My point is that if a house has been rehabbed, if you are going to pay a commission to a buyers agent, you need to get agents into that house, b/c they only know it as that vacant house on such and such street. Once they know it’s been rehabbed and know how beautiful it is inside, they can now steer buyers to your house.

Re: Should one invite local agents to Open House? - Posted by John Corey

Posted by John Corey on April 13, 2006 at 14:17:25:

Jack,

What are you assuming when you made your comment about the 3%?

I read the statement to mean that the buyer’s agent’s office gets the full 3%. Where I am from that is all they ever get from the buy side. Hence it is a full commission to the agent unless they happened to be both the listing agent and the selling agent (dual agency).

How a 3% commission is split internally at a specific brokerage is not an issue for the seller and will not deter the agents.

John Corey