If there was ever a part of real estate we could write a book about – we think the subject of open houses would make a best seller! You probably know that we have conversed extensively on both sides of the open house dialogue, whether as the presenting agent for our seller(s), or as the championing advocate for our buyer(s). The unique part about open houses today is that they are no longer the main data-gathering event for the home (90% of home research starts online these days!). Needless to say, an open house is still a prime opportunity to corroborate the data you’ve gathered, to grasp how the homes makes you feel, to see how the floor plan functions and to familiarize yourself with the neighborhood. Even more so, an open house is an ideal opportunity to learn not only about the home, but about the seller situation. With questions designed to derive some definitive answers, you can obtain extremely useful information about the seller’s needs, expectations and ideal process: think negotiating power!
Just this week, Realtor.com released an article on ‘7 Questions to Ask at an Open House That Uncover the Truth, Warts and All’. To maximize the relevancy of this data to you – we have provided the questions the article posed below, but answered them with our own Homes of Silicon Valley spin. Enjoy!
Questions Originally Posed By Realtor.com: 7 Questions to Ask at an Open House That Uncover the Truth, Warts and All (Click HERE For Original Article)
#1: Can you tell me more about the house? If the agent gives you a nervous grin and a recitation of the facts listed on the MLS, chances are he/she has exhausted every highlight in their marketing (we always suggest saving a few secrets for the serious shoppers only!). If the agent gives you an exhausted sigh and just tells you to look around, chances are he/she has been through the ringer getting this place ready to show and the enthusiasm expired before the photos were taken. While the answer to this question might not be a deal breaker, it can tell you a great deal about the agent’s perspective, approach and level of dedication throughout the remainder of the process.
#2: What shape is this place in? Have there been any recent improvements? This question tends to get two types of answers: you either hear the inspired list of two dozen improvements that have been completed, or you hear the subject change to how the house has ‘great bones’ and room to ‘customize’ with tons of ‘potential’. Once again, either answer could be a win – just note that a home lacking in upgrades CAN (but not always) be a home lacking in maintenance. A great follow-up question is to ask what types of home care have been completed on an annual or semi-annual basis (roof repairs, heating and cooling inspections, termite or electrical checks, etc.). Most of this should be provided in the disclosures, but it’s always a bonus when the agent is willing and prepared to provide any information above and beyond what is required.
#3: Has there been a lot of interest in the property? Before you ask this question, note in the back of your mind how many days the home has been on the market. It’s possible the phone has been ringing off the hook since the property hit the MLS 3 days ago, or this could be the 3rd open house and the maximum window for multiple offers has passed. In today’s market, a home that has NOT received a lot of interest may have mitigating factors such as being priced too high for the neighborhood, needing significant structural repairs… or it could just be a true outlier that is waiting for the perfect buyer!
#4: When are the sellers looking to close? This is information you will want to write down and share with your lender – to make sure if the timeline is tight, that you can deliver. This is also an ideal time to assess if the sellers have a place to go or will need a rent-back, which can be a strong feature of one offer over another.
#5: How much do utilities usually run? Some agents may not know this info off the top of their heads, but should at least offer to ask the sellers and get back to you. If someone seems unwilling to make sure you are aware of all the costs of ownership – that’s a very one-sided level of service you can expect to receive throughout the duration of the transaction. We believe that every deal should allow for equal amounts of give and take – which ultimately benefits everyone since knowledge is power and ignorance is never bliss in home ownership!
#6: How much traffic can one expect in this area? A neighborhood can look very different on a Saturday afternoon than on a Monday morning, and anyone who tells you otherwise probably has not been on the property at different times of day. Assessing what the area looks like at rush hour, after school and also where the sun rises and sets are a few components of location, location, location that should be open for direct discussion.
#7: What is the neighborhood like? If we are being honest – this is the stuff we love to share! Who isn’t proud to boast about the neighborhood pie eating contest for 4th of July, the semi-annual garage sale for charity or ‘best burger’ summer recipe swap?! A relational agent should be prepared with some facts not only about the home, but about the community in which it resides. If you leave just as excited about the company you might keep as the property you might own – that is a very good thing!
Are there other questions you could ask at an open house – absolutely! Let us take you to a few properties and together, we CAN do the talking that gets this deal walking (running and jumping with enthusiasm – really!). If you have worked with us, you know that we talk a great deal about agent ‘posturing’ – which means that we not only know what to ask and how to ask it, but what the answer is REALLY saying. Ultimately, it’s the relationship that we have with you AND with the agents on the other side that makes your deal more than a win, but a home run (pun intended!).
All our best,
Mark & Jason