The key to getting the most out of an open home is to talk to the real estate agent and ask them a lot of questions.
Not only does it show that you’re genuinely interested in the property, but you might be able to get some information that could be handy when it comes to putting in an offer.
Here are the key questions to ask at your next inspection.
1. What are recent comparable sales?
If a price guide is not listed, you should ask the selling agent for one, and you should go further by asking them why they think it’s worth that price or how they came to that figure. A good agent should be able to talk about recent sales of similar properties in the area. You want to make sure the property is priced fairly, but don’t just rely on the agent’s word, make sure you do your own research as well.
2. Have you received any offers yet?
This question gives you an indication of the level of interest in the property and whether it’s reasonably priced or not. Some agents may tell you what offers have been put forward or give you an estimate. They may even tell you a vendor has rejected certain offers because they are below their price expectations. This is all valuable information for when you’re working out how much to offer.
3. Why are the owners selling?
The responses to this question will be handy when it comes to negotiating a sale. For example, a vendor might have already bought another home so they might be more motivated to sell. On the other hand, a vendor might be retiring and they are in no rush to sell until they achieve the desired price. A vendor might even want a longer or shorter settlement period depending on their circumstances and if you’re able to meet those terms, they may be more willing to sell to you instead of another purchaser.
4. How long has the property been on the market?
Asking this question will give you insights into local market conditions and whether you have the ability to negotiate a lower offer. Generally, the longer a property has been on market, the more motivated an owner is to sell and this puts you in an advantageous position to put in a lower offer. However, if a property has been on the market for several months and has not been sold, this could be a possible sign that there may be an issue turning buyers off, so make sure you do your due diligence.
5. Are there any known issues with the property?
There may be issues with a property that you did not notice during your inspection so it’s a good idea to ask the agent, especially if you’re interested in buying it. A good agent will be upfront about any issues which can affect your decision and the value of the home. Of course, you should also do your own research and have a building inspection carried out and have a conveyancer or solicitor look over the strata report.
Knowledge is power when it comes to buying property. Your local Mortgage Choice broker can assist you in the process so make an appointment to speak to them today.