Five things to ask at open homes this weekend…

We know what attending a seemingly impossible number of open homes every weekend is like - all the properties worth looking at always seem to be open at the same time and on opposite sides of town.  It's like they expect you to teleport. 

To save you time and help you decide whether to pursue a particular property - here are our top tips for five questions to ask the agent at open homes this weekend.

1.     How long did the vendor own the property and why are they selling?

This question is a great warmup - the key here is to understand the vendor’s motivations for selling.

See, solid properties in good neighbourhoods tend to come to market less often and even then, for obvious reasons - i.e. a young couple upsizing from their first home, family leaving the region, etc.  

While there are of course no hard and fast rules here - an unconvincing reason for sale can warrant further questions into the neighbourhood (is it decent, are there any significant changes or developments on the horizon) or if the property needs work or as agents often call it... 'deferred maintenance'.

2.           What reports/ information do you available for the property – and how recent are these?

While it is normally on purchasers to get LIM and/or Builder's Reports if they want them, we are seeing more and more sellers provided these reports upfront to interested buyers. 

Buyers love it when vendors back their property enough to do this and while buyers cannot legally rely on these reports, it gives confidence that a property is sound and makes it much easier for them to decide whether a property is worth pursuing - especially where the reports are prepared by the council or a professional building inspector. 

Ask the agent if these reports are available or if they have been ordered and will be made available soon.  Vendors – if you are selling a property that you know is solid and you want to drum up competition on price (rather than conditions) – investing in these reports as part of your listing process could pay dividends.

3.           What have similar properties sold for recently and could you provide a buyer CMA?

When deciding what a property should sell for, the agent will look at recent sales that are similar to their new listing (ever wondered how agents land on their price for ‘enquiries over’ ?)

What’s the upshot here? The agent has already done their homework on recent comparable sales and they should be able to provide a report on these to you.  This list is known as a 'CMA' or Comparative Market Analysis report and you should really want to see it - it will give you a much more accurate guide on how to price a property that is based on fact, rather than the agent’s opinion.

4.           What settlement date are the owners looking for?

This question is often overlooked but it can be incredibly important, especially if the vendor is selling for a convincing reason – remember properties tend to come up for sale for a reason. 

We have seen vendors accept less favourable offers because the settlement date works for them.  That may be due to the sellers building a new home, wanting to line up their sale and purchase dates, or that they are starting a new job in another city.

On the other hand, if you need to be moved in by a specific date, it pays to be upfront.  You could find out that the seller’s expectations on settlement dates are a deal-breaker.

5.           What else do you need to tell me about this property?

Agents have a duty to disclose any issues with the property that they are aware of. If you ask this question confidently it shows that you know what you are up to and it can be surprising what kind of answers you get.

Depending on the answer to the above, ask outright if anyone else has had a building inspection done and if so, did they still make an offer?  If not, then why not?  This is also an opportunity to ask if anyone else has offered on the property and if so – why did the deal no go through - did something with the property not check out?

Sometimes this question will trigger the agent to start listing every known (even minor) issue with the property. It’s important not to let fixable problems put you off unnecessarily, just make sure that you have enough money left over for any urgent jobs. Remember a few hundred (or even thousand) dollars is often a small drop in the bucket when compared to the property’s total value.

Get in touch if you have any property related questions or if you have found 'the one' and are keen to take the process further. Goodwill Law is here to make your property buying experience as stress-free as possible. 

Stay safe out there and happy hunting!