Open homes: Ask and you will receive
Conversing with a real estate agent at an open home can feel like a strange mating dance. You’re on opposing sides of the battle but you want as much information as possible out of each other – so what should you ask and what should you keep to yourself?
Property blogger Andrew Duncan from yourbiggestasset.co.nz has been in real estate all his working life and said buyers often think they need to build a relationship with agents to help them secure the home.
‘‘While this can be true, it’s important to remember that they are hired by the owner to achieve the best possible price,’’ he said.
‘‘They are negotiating on behalf of the owner. Be friendly and polite of course, but share as little about your personal situation as possible.’’
He advised the No 1 question people should ask is: ‘‘What do I need to know about this home?’’
‘‘It compels the salesperson to make you aware of any disclosures related to the property. Disclosures should include anything that may influence a buyers’ decision to purchase.’’
While disclosures are usually related to the physical aspects of the property, they can also be other things that may influence a buying decision.
Agents should disclose things like if any earlier offers had fallen through and why, and whether a crime had been committed at the property.
‘‘Asking the question this way gives the agent more encouragement to be forthcoming with information, and we all know agents love to talk,’’ said Duncan.
And while agents do have a duty to disclose any potential problems, buyers should protect themselves by asking specific questions.
It should be common to ask about the neighbours, the vendor’s reason for selling, the property’s past, if there are any zoning or boundary problems and whether consents have been obtained for additional work.
Duncan said while agents are compelled by law to disclose problems, sometimes they don’t know everything or they might be inexperienced.
‘‘It is critical that you complete your own research with a builder, solicitor and through your local council either before offering or by putting those checks into your offer as conditions,’’ he said.
Other musts include asking whether the settlement date can be flexible, what documents such as LIM or building reports are available, and what other comparable homes in the area have sold for.
Armed with this information you can work out your game plan and offer amount.
Duncan also recommended asking about the process of buying the home.
‘‘You want to know when your offer will be presented and when the owner is likely to make a decision,’’ he said.
‘‘Most complaints from buyers stem from the salesperson poorly communicating expectations around timeframes.’’
Also don’t be afraid to book multiple viewings – ideally at different times of the day – to look at parking, sun and noise levels.
‘‘Buying or selling a home is the single biggest transaction most of us will ever be involved in,’’ Duncan said. ‘‘The more informed you are, the better.’’