In a multiple offer market, many buyers will hit a number of open homes or broker's tours, hoping to get an immediate jump on the market. And it's understandable. You must be prepared to take action quickly when inventory is limited. Agents are frequently working with multiple clients and schedules don't always coincide. I've had a number of buyers who were just casually looking, and not yet ready to buy. But then a chance visit to an open house inspires them to take action.But if you are touring homes without your agent, keep these tips in mind:
In many cases, the agent holding the open house is the listing agent, and is contractually bound to the seller. Anything you convey may influence the agent in your offer presentation or negotiations. I had one agent tell me that my client's offer wasn't chosen, as at the open house they mentioned that they had not talked to a lender yet. Although they'd done a full loan application with pre-approval the very next day, she didn't trust it. It was real all right. He worked for a major bank and had full access to underwriters and a quick turn around.
Don't open a dialogue about what price you may be willing to pay. If you've not yet seen comps, you may have let the cat out of the bag about a purchase price much higher than warranted. A past client asked the listing agent if the seller would accept the price of $XYZ for the home. Unfortunately, when we ran comps, the price mentioned was much too high. But that left an open invitation for a high counter offer.
Let the open house host know you are working with an agent. Agents hold open houses in part to market the house, but also to meet new clients. If you've given them the idea that you might be a potential client for them, and they find out later you are represented, they may feel duped and could be reluctant to trust what's written in your subsequent offer.
Notice the activity or conversatations of other visitors and share them with your agent. These can be helpful in strategically positioning you and your offer. Maintain a position of Ask, Don't Tell. Learn what you can, but share as little as possible without advice from your agent.
Tri Valley real estate for buyers and sellers. Search for homes in Livermore, Pleasanton, and Dublin.
I can also help you in the surrounding areas of Alameda County and Contra Costa County
including Castro Valley, San Leandro, San Lorenzo, San Ramon, Danville, Brentwood and Mountain House
Good advice. Just smile and ask all the questions. Being very vague about customers wants, needs and money situation is a good thing.
Karen, I've suggested this post because it is good, sound advice. Sometimes buyers can unwittingly be their own downfall!
Carol, sometimes buyers feel that a rapport with the listing agent can give them an advantage. And sometimes that probably does. But it can backfire too.
Chris - Yes. Give the details your agent, and little to the seller's agent.
Mona - thank you so much. It's a constant learning situation and when buyer's let me know where they've been and what they've said, I'm often left with the 'uh-oh' feeling.
best thing to say to them is "elevator speak" just name rank and serial number, nothing else
Buyers have no idea that thier positive comments can cost them a lot of dollars.
I agree, and I tell my clients if they are going to an open house without me for some reason that it's fine to ask questions about the house, but never share their thoughts about the price because it will impact negotiations if they like the home.
Thanks for the post!
Great advice - with buying very competitive what they say can either help or hurt them and best to be careful. Regards Dave
Karen -- Good advice and points we should advise buyers about before we send them to open houses without their agent.
I don't think buyers realize that what they say can come back to hurt them. Great post, Karen.
Karen, I had a buyer tell me her agent is a friend; works mainly in high-end homes; and her agent did not have time... you get the drift. The agent was also self-admitted not experienced in short sales. Needless to say, that buyer's offer was not accepted. Keep the ears open and the mouth shut (LOL)!
These are great tips, Karen. Listing agents are always listening.
The strange dynamic of Real Estate strikes again!!! We coach our clients to tell us everything so we can serve them better, then when they meet Other Realtors we want them to clam up - right when they're in-the-moment and the most excited!!!
We are responsible to educate our buyers but sometimes they just get too excited to remember.
Listing agents represent the sellers, dont tell if you dont want them to know...
That's so true. So many buyers open up to listing agents and missing an opportunity for their agent to negotiate a good deal for them.
You know I've got to reblog this one Karen! Couldn't agree with you more.
Karen, this was very costly to me as my buyers did not get the home they loved! They were first to reach the home at open house (even before the listing agent) and did disclose that they just love the home (and of course, that they are working with me!)
So how did they lose the home? They mentioned that they can make full price offer for the home! They were outbid by another party just because they were too vocal!
"In many cases, the agent holding the open house is the listing agent,"
In my area, if you're holding an open house, you ARE the agent for the seller.