I've hosted quite a few open houses for agents in my office and a few for my own listing. I'm starting to farm an area that is a little further away from my office and there aren't any agents in my office with listings in this particular area.
I want to get established in this area so the question is, is it normal for an agent to host an open house for an agent from a different brokerage? I don't see why not since I won't collect any money out of it unless I bring a buyer.
Has anyone done this before? I guess the only downfall is that I'm helping promote my competition in a way.

TIA,
Cliff

It's happened before. Sometimes brokers have weird rules against it, though. I don't see why it shouldn't be allowed. We already basically promote each others' listings through the MLS and IDX... We show each others' listings when we have a buyer... The listing office shouldn't object since the house is getting exposure, and the hosting office shouldn't object since the agent is getting exposure.
--A

Our office does not allow it, liability reasons. But we have 9 offices so there is always a house to hold open if we want.

Just out of curiosity, what if any more liability would you have hosting it open for 2 or 3 hours than if you showed it for 30 to 45 minutes to a couple you were working with? Obviously, you are more liable for a longer period of time, but as far as being more liable... maybe I'm missing something obvious, but showing or holding it open there really isn't a lot of difference as far as having strangers in from a legal standpoint anyways. Anything I can think of that you would be liable for in an open house, you'd also be liable in a normal showing situation.

Josh

There's a big difference. When showing, you're with a client(s) (individual, couple, family) who you know and have qualified. At an Open House, you don't know anything about the people coming on to the property. I did an open house and had over 150 people on the property in a 3-hour period. It was virtually impossible for me to keep track of everyone and one guy even asked me where the crawl space opening was. There were literally people in every room, upstairs, downstairs and in the back yard at the same time. Liability potential from an open house is increased significantly compared to a showing.

I'm moving to Seattle.
--A

Our contracts here address showing property and the amount of people would not increase our liability... on another note, I've never had a three hour open house with 150 people, that would be 50 people an hour, almost one person walking in the door every minute... for the entire 3 hours? :rolleyes: Back to the original topic, how does having an open house for your broker, or having one for someone else, increase anyone's liability? If you're holding that house open either way, I don't see how there is any increased liability, the listing office would still 'hold' the same amount of liability.

The judicial system wouldn't care if you knew the people (existing clients) or more of a stranger (someone walking in at an open house), if something happened and you were the liable person, it won't matter... no more/less liability either way.

Josh

150 people? I thought 10 groups through in 2 hours was pretty good!
So I think this settles it. I'll check with my broker to see if it's okay regarding office policy and then away I go.

Cliff

Ther is no difference in liability between and open house and a showing.

150 people in 3 hrs? Why do I find that really hard to believe?

I think I misinterpreted the liability question posed. I was looking at it from an insurance standpoint, that having strangers on the property, rather than clients under your control, would increase the potential hazard exposure (theft, damage, etc), therefore, increasing liability and ultimately damages. I was an insurance underwriter previously so I tend to view things from a risk management / risk aversion standpoint. There is greater risk of hazards with an open house than a showing. The greater the risk, the greater the liability exposure.

The open house experience was an anamoly. I held it open for another agent who was reviewing offers at 5 pm that afternoon on a rare sunny day. I logged 60 names on the guest register and people came in groups - couples and families. And, not everyone signed the register. One family alone had 8 people. So, there were at least 60 groups of people and minimally 2 per group. Then adding in all the families and people who didn't sign the register...I think 150 is actually a little low. Plus, the house was underpriced so it garnered a lot of interest.

That was an oddity. I only had 8 people at my last open house.