Six Tips for Buyers at an Open House

by Laura Matiz

Going to an open house can be a hit-or-miss situation, but if you go prepared with the right questions, even an overcrowded affair can be useful to assess the unit with the few minutes you get with the listing agent. It is likely that that agent has done a fair amount of research in preparation to list the apartment. This may be your best opportunity to benefit from that agent's research while in the apartment.

Here are six topics that I want my customers to understand during an open house visit. You are trying to question the agent running the open house for the good and the bad, and possibly the ugly about the property.

While walking around the unit, ask the agent:

1. To describe what he or she thinks is the key selling point of the unit. You are looking for what they have assessed as the unit's best value or feature. Is it the price, the space or layout, or the view? The agent's response will help you understand how the unit is being marketed against comparable units.
2. To enumerate any specific financial requirements from the coop board. Does the building require a specific debt-to-income ratio? Or, does the board look for a liquid reserve of two year's worth of maintenance and mortgage post closing, or more? You are trying to get a feel for how tough or difficult the board approval will be.
3. To reveal any surprises such as a soon-to-be-announced maintenance increase or assessments for a building capital improvement.
4. To assess how the agent arrived at the listing price and seller's negotiability. The agent should be able to offer comparisons with recent sales in the building or nearby. You want to understand if the unit has been priced high, or does the agent think the unit is priced to sell quickly.
5. To highlight valuable amenities. You are looking for what the agent considers worthwhile amenities so you can ignore a gym that is  dark and dank in your evaluation. A roof deck sounds most appealing as long as it isn't next to a loud a/c.  Only amenities that add value to the apartment should be taken into account, such as a good-sized storage bin, or a well-run pool. Too many buildings list amenities that don't add any value.
6. To provide insight into the building's reputation. You want to understand how the board, the managing agent, and super work as team. You want to question  how the agent feels about the building's staff and how they conduct their duties. Ask if the super lives in the building and runs a tight ship or does the agent hint at a staff that is jaded and unresponsive.
   

Some of these topics may need to be addressed indirectly and subtly, but if you get good responses, by the end of your visit, you will have a better feel for the unit's value. If any of these questions are unanswered after the open house, they should be the basis  of follow up research.

Categories: Douglas Elliman, Tips