You can always view a listed home by scheduling a showing, but there is still something about an open house that generates interest and excitement — especially because it gives you an indication that the seller is motivated. An open house also presents a great opportunity to meet with the seller’s agent and get key insights about the home that you might not get during a private showing. And, for the first-time home buyer, it offers a great chance to get acquainted with the house-hunting process.
That being said, if all you do at an open house is wander around, you may be missing a key opportunity. The weekends in Atlanta are prime time for open houses, especially in the spring. If you are on the hunt for a new home, here are eight key questions you should ask at an open house.
1. How long has the home been on the market?
This question serves two purposes: to look for red flags and to determine your negotiating power. A home that has been on the market for a while, especially in a hot market, may have some unforeseen issues. It may also mean that the home is overpriced. At any rate, the longer the home has been listed, the more likely it is that the seller might open to negotiation on the price.
2. Has the price changed since the home was listed?
A price drop is often a sign of a motivated seller. If the price dropped recently, it may indicate a willingness to negotiate (but probably not by much, as the price was already reduced). It also gives you an idea about how difficult it has been for the owner to sell, whether due to problems or overpricing. Finally, it’s a signal that if you like the home, you might want to make an offer sooner rather than later, as price drops tend to draw more potential buyers.
3. Why is the seller moving?
Why the home is up for sale? This is very important to know! Look for a direct answer from the agent on this one. If the sellers are relocating for work or downsizing purposes, chances are they were happy in the home and are leaving for other reasons. If the agent gives you a vague answer, there may be other negative reasons as to why the seller is anxious to sell.
4. Have there been other offers on the home?
It’s simple here: gauge your competition. If the house is getting multiple offers, a bidding war may be setting up, which could force you to pay more than the listed price. If you’re not in love with the house, it’s a good time to move on. If you are in love with it, make your best offer now.
5. What do utilities usually cost?
The answer to this question gives you an idea of what your monthly expenses will be in addition to your mortgage.
6. What updates have been made to the home, and when?
Your reason for asking this question isn’t just to let the agent push the selling points of the home — it’s so you know what you can expect down the road in maintenance costs. A new roof, for example, is a huge plus because you know you won’t have to replace it for some time. If wiring, roofing, appliances and furnaces are all older, you know you may have to spend some money on these down the road.
7. Are there any issues with the home?
The seller is legally obligated to reveal if anything is wrong with the house, and the agent will usually produce a disclosure form with this information. If you decide to buy, a home inspection will reveal even more data; however, this disclosure will tell you if there are any initial red flags or deal-breakers.
8. What is the neighborhood like?
The agent is likely to give you some vague answers here because the Fair Housing Act forbids giving any information that could be construed as discriminating based on race, family status, ethnicity, religion, etc. However, you may get some clues as to whether it’s a neighborhood you’ll resonate with or not. For example, if the agent mentions the park down the street, it’s a good guess that it’s a kid-friendly neighborhood. If the agent mentions how quiet the neighborhood is, the demographic may be older. Additionally, if there’s a reference to great restaurants or a popular bar around the corner, you may be moving into a neighborhood with a vibrant, active crowd.
Visiting open houses can be a lot of fun, and it can also give you a good idea of what kind of homes are available in your favorite neighborhoods. To learn more, call Atlanta Fine Homes Sotheby’s International Realty at 404.948.4812.