I would suggest that the benefits of an open house is one that gets debated most often in the real estate industry. Let’s face it, many Realtors don’t enjoy spending chunks of their Sunday sitting at a home awaiting strangers who are mostly not interested in buying that home anyway. Skeptics maintain that the open house is more beneficial for the Realtor, as they can find more potential prospects who might be interested in other homes. Moreover, technology has afforded anyone the opportunity to instantly access a slew of information, photography, and data about any home 24 hours a day from the convenience of their fingertips.
Despite the tremendous resources available, open houses seem to be a staple in the marketplace. In a world of social media with videos, virtual reality, lives, and 3-D tours – the open house continues to dominate a home buyer’s Sunday schedule. Even during the summer, open houses move to weeknights to take advantage of the long summer nights, and busy family weekends.
In my opinion, open houses can be extremely beneficial for those that know how to seize the moment. Taking the time to ask targeted and poignant questions can help a potential home buyer not only win the bid if there are competing offers but also to maximize their dollar along the way.
An open house gives you an excellent opportunity to look more closely at the details of a home including the surrounding areas and demographics. It also affords you the chance to chat with the owner or the listing agent to discuss any issues or hesitations that you may have observed or thought about regarding the home.
Why has the seller decided to sell now? If you ask why the seller is moving, you could learn valuable information to help determine your offer — or possibly whether or not you want to buy the home altogether. Knowing whether the owners are about to go into foreclosure, have experienced trouble in the neighborhood, or if they’ve retired and completely paid off the home can help you understand how urgently they need to sell their property.
Has the seller had any other offers? Don’t forget that you are not only negotiating with the seller for a price, you are also competing with other potential buyers. It really helps to know what you are up against. It is important to understand that you might not get an entirely straightforward answer to this question as most sellers know that competition – or perceived competition – can cause a potential buyer to move forward more quickly and at a higher price. Very often however, during the course of discussions information will become revealed that can be very useful and valuable.
Does the property have special ownership costs? Ask the agent or owner about the other costs associated with owning the property, such as Home Owners Association fees within a condo complex or in a gated community. It’s important to know about these extra expenses in advance so you can make an informed calculation. In addition to asking how much the real estate taxes are, questions to determine approximate costs of insurance, gas, electric, water, sewer and the like, can help a homebuyer better budget their monthly carrying costs of this new home purchase besides the mortgage payment.
When all is said and done, an open house is an excellent opportunity to learn more about a home before making the decision to buy it. Very often, the information discovered during an open house is priceless and can have many benefits. With the guidance of a competent and trustworthy real estate professional, you can maximize not only your time but also your dollar. A special shout-out and Happy Birthday to Terri Karasick! Hi Toby!
By Shmuel Shayowitz
Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience including licenses and certifications as a certified mortgage underwriter, residential review appraiser, a licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at [email protected]
