HOW BUYERS GET THE MOST OUT OF OPEN HOUSES

Open houses are a valuable tool for home buyers. You can view a property in a low-pressure environment, and you can usually take as much time as you need. Hello and welcome, my name is Judith Vandenberg and I am with Vandenberg Real Estate Solutions. Today we are going to discuss how buyers get the most out of open houses.

Qualify yourself for an open house.

The first thing you do after you get pre-approved for a mortgage and you are ready to house shop is to pre-qualify the houses you want to look at. There are several real estate websites who will list all the open houses for the weekend. The best time to search would be the Thursday or Friday before the weekend. View the houses with opens, checkout the listing photos, virtual tour, list price and house features. You want to learn as much about the property as you can. You don’t want to go to an open house just to go to an open house. You want to know if it’s worth your time and the houses you are looking at are something you are interested in. You don’t want to make the effort driving out and viewing a home and finding out it is way above your budget. Plan which open houses you will attend in advance and you can even put them on a nice driving route using Google Maps!

Open house etiquette

 As you are being invited to view someone else’s home it is important to follow open house etiquette.

1. Do follow the rules

Some homeowners will request that potential buyers remove their shoes before they tour the home. Most sellers will request this so you might want to wear slip-on shoes with socks.

2. Don’t bring children or pets along

Children can easily break something or make a mess and pets can track in dirt from outside. It is best to leave your kids and pets at home with a sitter. This allows you to concentrate on viewing the home.

3. Do introduce yourself and sign in

Smile and greet the hosting agent. Sign in, you don’t have to include your contact information if you’re not interested in further marketing from the agent, but putting down your name will at least ensure that the agent gets an accurate traffic count.

4. Don’t crowd other prospective buyers

It’s good etiquette to wait until others have vacated a room before you enter. This gives the other prospective buyers time and space to really look, instead of feeling “pushed out” by another buyer who’s looking at the same space.

5. Focus on the property

Prepared sellers will hand out a property description sheet with information like square footage, number of bedrooms and bathrooms and special features. Use it to take notes and check off things as you walk through the house. If square footage is important to you, bring a tape measure. Also remember, if you want to take video or photos, ask permission.

6. Look, don't rummage

Opening closed doors is fine, but there’s no need to go through personal items like medicine cabinets, chest of drawers or toy chests.

7. Hold the criticism until after you leave

The seller still calls the place home, so don't badmouth it during the tour. Who knows who may be listening -- the seller, a neighbor, a friend? If you end up in a multiple offer situation where price and terms are similar, you don't want the seller choosing the other buyer because he heard you criticizing his home.

8. Don’t overstay your welcome

Open houses are usually only scheduled for a few hours, and there may be a lot of attendees, especially in competitive seller's markets or if a home has just come onto the market. By all means, take the time you need to tour the home, but don’t stay longer than you need to.

What to look for during an open house:

1.     Look beneath the surface

Look for signs of water damage, cracked walls, faulty pipework, and other signs that indicate regular maintenance hasn’t been carried out.

2.     Use all of your senses

Don’t just look around when you’re doing a home tour. Pay attention to odors that might suggest problems with dampness, sewage systems, and even gas leaks. Also, listen out for squeaky floorboards and squeaky doors.

3.     Look outside

A good look outside can reveal major structural defects, such as roof damage or even foundation problems.

4.     Explore the neighborhood

While you’re in the area, spend some time in the neighborhood. Check out local amenities, as well as the neighboring homes.

Red Flags to watch out for:

Outside nuisances

Take notice if the street is busy, listen for any barking dogs or look out for unruly neighborhood children. And take note if you come across anything that just doesn’t sit right with you. An overpowering air freshener might be masking the smell of mildew, odd furniture placement could be hiding cracked plaster or a damaged floor.

Look for signs of neglect. View each room of the home with a critical eye.

Look for cracks in the paint or walls, older plumbing or HVAC systems, signs of neglect, or a sagging roof. Also, look for any stains or discoloration on the walls and ceilings

Check under sinks for mold or water damage

Look in bathrooms, in the basement, and even under the deck for any mold or mildew. If you cannot see it, you may be able to smell it, as mold tends to have a musty or earthy smell.

3. Several homes for sale in the neighborhood

If you notice that there are several homes for sale in the area, find out why, as this trend could indicate that there is an issue.

Questions you might ask during an open house

One of the greatest perks is talking to the listing agent and asking questions about the home.

You can find out about the sellers and their motivations for moving, and get vital information about the property that might not be on the listing.

Some questions you might ask are:

Why are the sellers moving?

Knowing the reason to why the sellers are moving, can give you a lot of information. It can lead you towards potential pitfalls of the home or give you an idea of when to submit an offer.

How long has the house been on the market?

Knowing how long a home has been on the market is crucial when considering an offer. A home that’s been on the market a long time could signify that there might be something wrong with the home or that the seller is unwilling to negotiate.

You can also expect to have more negotiating power if the house has been on the market longer. Sellers are typically more receptive to a lower offers.

Has there been any offers on the home?

It’s good to find out if the seller has had any offers, and if they were rejected or fell through. This can give you an idea of how open to negotiations the seller are and find out if there are any current offers on the table. If you know you’re bidding against other buyers, you’ll be able to put your best offer forward. If you’re not bidding against other buyers, a lower offer might be better received.

Are there any issues with the home?

Sellers are required to disclose any issues they know exist on the property. You can also ask to see the Property disclosure statement from the listing agent. This disclosure will cover more specific questions about the home.

What kind of upgrades has the seller made to the home?

You’ll want to get an idea of when the home’s major systems were updated — including the roof, electrical system, hot water tank, furnace, windows ect. This will give you an idea of what if any repairs and replacements will need be done soon.

Also, ask the agent about any renovations that were done to the home. Ask if they were done by the homeowner or licensed professional and if they were done with the proper permits. It is always wise to hire a home inspector, they will let you know about any issues with the home.

What is included with the sale of the home?

Sellers aren’t required to include anything that’s not attached to the home, so appliances, window coverings, hot tubs or furniture aren’t always included in the property sale. It is best to ask about what the seller is including in the sale and what they would be willing to include for the right price.

If the home is a Strata, you can ask

What are the strata fees per month and ask to review strata documents?

Strata Documents will tell you about any issues in the complex, rules, regulations, parking, pet rules, what the monthly strata fees owners pay every month, and any amenities those fees pay for.

What is the neighbourhood like?

Loving the home is just one part of the equation. You also want to love the neighbourhood the home is located in. Ask the agent about the neighborhood — its amenities, the people who live there, and what businesses and services are in the area.

Also, ask about the neighbors and, if you have children or pets, ask about local playgrounds, trails, and dog parks.

Neighborhood events are another thing to consider. Are there neighborhood get-togethers? Are the streets busy at night? Are there parties on the weekends? Knowing the average age of residents can help you understand what types of activities you may see in the area.

What is the average cost of the utilities per month?

This is a great question to ask. You can find out how energy-efficient the home is, what your monthly utility bills would be, and if the home uses natural gas, solar energy, electricity, or a combination.