Since open houses have become more commonplace in and around Ottawa in recent months, Sean Tasse and Brendan McKeigan recently hosted a podcast episode on them! They go through different scenarios that may arise from different perspectives to give a full picture of what you may be walking into and how you can get the most value out of your open house experience.
There are two main reasons for a member of the public to walk into an open house:
- The individual is looking to buy a home and is interested in the property.
- The individual is looking to sell their home and they would like a better idea of what’s for sale in or around their neighbourhood.
There are two types of agents that may be hosting the Open House:
- The listing agent who represents the Seller’s interests.
- An agent who is hosting the open house but does not represent the seller. They are there to meet future clients.
In this article, we will go through the scenario of visiting an open house because you are looking to buy a home.
First things first, ask the agent whether they represent the Seller. The concern here is that a Seller’s agent is that legally obligated to help their client sell the home for the highest amount possible. If you begin chatting with that agent and share information about your circumstances, then the agent is legally obligated to share that information with the home seller. This puts you at a disadvantage. If you do have REALTOR® that you are working with, be sure you disclose that information when you walk in. Typically, there will be a sign in form at the open house – you can record your agent’s information there. That way, the REALTOR® hosting the open house can contact your agent directly about the property.
The first question you should ask when you walk in the door is, are you the listing agent? Or what is your relationship to the seller? This is a good starting point and allows you to have a good lens on what information the REALTOR® is sharing with you, and what information you feel comfortable giving back.
We recommend asking as many questions as possible to listing agent as typically, they will know more about the house than another agent. In general, try to ask more than you answer and give as little information about your situation as possible. Let the listing agent tell you about the house as the client has likely told their agent what’s important to them. This puts you in a better position for future negotiations if you plan on purchasing the home.
At the end of the day, the most important advice we have to offer in this scenario is to find another agent if you are going to buy the home (don’t purchase with the listing agent). There is a much larger potential for a conflict of interest in this scenario. You will never regret having a relationship with a REALTOR® who can devote their energy to your interests and negotiate on your behalf.
Another potential scenario could be that the REALTOR® is hosting the open house to meet new clients and does not have a relationship with the seller. If this is the case and you are unrepresented, this is a great opportunity to interview the agent. Ask questions that test their market knowledge, ask what their real estate experience may be and see if your personalities jive well. You could be spending a lot of time with this person so finding an individual that you get along with is very important! The agent at the open house can assist with comparisons and let you know about other similar homes that are currently on the market. Our real estate team also has access to a long list of properties that will be coming to the market soon, which can give you a wider array of properties to consider!
For more insights on Open Houses, check out the full podcast episode (included in this blog article) or for other valuable real estate related tips, you can check out the REAL Collective Podcast on iTunes, Spotify or YouTube.