Attending Private Showings & Open Houses

Interacting with the Listing Agent

As an unrepresented buyer, your interaction with the listing agent is crucial. Here’s how to handle it:

• Be Transparent: Let the listing agent know you’re an unrepresented buyer. This can open the door to valuable information and insights.

• Ask Questions: Inquire about the property’s history, the seller’s motivation, and any recent renovations or repairs.

• Be Polite and Professional: Maintain a courteous demeanor. Building a good rapport with the listing agent can be beneficial.

Understanding the NAR Settlement Changes

The 2024 National Association of Realtors (NAR) settlement brought significant changes to the way real estate commissions and agent roles function. As a result of the settlement, listing agents may now attempt to "double side" a deal more frequently, meaning they represent both the seller and the buyer in the same transaction. Without a dedicated buyer’s agent, unrepresented buyers may be approached by listing agents who offer to assist in the transaction but ultimately still have a fiduciary duty to the seller. This can impact negotiations, disclosures, and the overall level of advocacy a buyer receives. Here are the pros and cons of this arrangement:

Pros:

• Increased Motivation: The listing agent may be more motivated to close the deal quickly, as they will earn a commission from both sides.

• Potential Insider Information: The listing agent might provide insights that could help you secure the property.

• Simplified Communication: Having one agent handle both sides can streamline communication and negotiations.

Cons:

• Conflict of Interest: The listing agent's primary duty is to the seller, which could lead to conflicts of interest.

• Limited Advocacy: As a dual agent, the listing agent may not be able to fully advocate for your best interests.

• Extra Costs: The listing agent may want a commission for helping you through the deal, though this could be less than if you had to pay for your own buyer's agent.

It’s important to weigh these pros and cons and decide if having the listing agent represent you is worth the cost. Homa can help you represent yourself while still keeping an open line of communication with the listing agent.

State Regulations on Dual Agency

Some states allow for dual agency, but the rules can vary significantly. In Florida, for example, dual agency is not permitted, and instead, agents act as "transaction brokers," providing limited representation to both parties without full fiduciary duties. Before reaching out to a listing agent, find out if your state permits dual agency.

Do You Have to Sign an Agreement to Tour with the Listing Agent?

You are not obligated to sign a buyer representation agreement when attending an open house or when a listing agent shows you a property. If a listing agent insists otherwise, kindly request they verify this with their broker or local realtor association. For further clarification, refer them to the National Association of Realtors' guidelines on open houses and written agreements.

Preparing for Your Home Tour

Taking the time to prepare before visiting a property ensures you get the most out of your experience and don’t miss any important details.

• Gather Information in Advance: Review the property’s online listing, including photos, descriptions, and any available virtual tours. Take note of any details that raise questions or concerns.

• Plan Your Visit: Look up open house schedules or coordinate a private tour with the listing agent. Be ready to adjust your availability to align with the seller’s timetable.

• Develop a Checklist: Make a list of property features and elements you want to assess in person, including the condition of structural components, appliances, and room layouts.

• Pack Essential Tools: Bring a notebook, pen, smartphone, and a measuring tape to document findings and take measurements.

Areas to Evaluate:

• Exterior Elements: Inspect the roof, siding, windows, doors, landscaping, and any paved areas like the driveway or walkways.

• Interior Condition: Assess walls, ceilings, floors, doors, fixtures, and appliances for any signs of damage or wear.

• Room Features: Evaluate room sizes, layouts, lighting, and available storage options.

• Essential Systems: Confirm the condition of heating, cooling, plumbing, and electrical systems.

• Potential Issues: Be on the lookout for signs of water damage, mold, pest problems, or structural concerns.

Maximizing Your Open House Experience

Attending an open house is a great opportunity to explore a home and gain insight into its condition and potential drawbacks.

• Arrive at the Start: Arriving early allows you to explore the property with fewer distractions, ensuring a more thorough inspection.

• Document Key Details: Take notes and capture photos of any standout features or potential problem areas.

• Engage with the Agent: Ask the listing agent important questions regarding the property’s history, neighborhood, and any recent updates.

• Visit Other Open Houses: Seeing a few homes in the same day will help you understand what you do and don't like about the property you're most interested in.

Important Questions to Ask:

• What is the age of the major systems, such as HVAC, plumbing, and electrical?

• Have there been any recent repairs or renovations?

• Are there any existing issues or planned assessments?

Conducting a Thorough Private Tour

A private tour offers the opportunity to examine a property more closely and without distractions.

• Move at Your Own Pace: Take the time to carefully inspect all aspects of the home.

• Examine the Home’s Exterior: Pay close attention to the roof, siding, windows, and landscaping for any signs of needed maintenance.

• Assess Storage Options: Open closets, cabinets, and other storage areas to ensure they meet your needs.

• Test Fixtures and Appliances: Check the condition of faucets, light switches, appliances, and other household features to confirm they are functional.

• Measure Rooms: Use a measuring tape to verify that spaces accommodate your furniture and lifestyle requirements.

Evaluating the Neighborhood

The surrounding area is just as important as the property itself. Ensuring the location aligns with your lifestyle and safety expectations is crucial.

• Visit at Different Times: Walk or drive through the neighborhood at various times to get a complete picture of its activity levels and overall atmosphere.

• Identify Nearby Amenities: Take note of local grocery stores, schools, parks, and public transportation options.

• Monitor Noise Levels: Be mindful of traffic sounds, nearby businesses, or any other disturbances that might affect your quality of life.

• Speak with Residents: If possible, chat with neighbors to get their perspective on the area and any potential concerns.

• Research Crime Data: Look up crime statistics and safety reports to understand the security of the area.

Making an Informed Decision

Comparing multiple properties systematically allows you to make the best choice for your needs and budget.

• Review Your Observations: Go over your notes, photos, and any insights gathered from each home visit.

• List the Pros and Cons: Weigh the benefits and drawbacks of each property to narrow down your options.

• Consider Financial Implications: Account for potential costs related to repairs, upgrades, or modifications.

• Schedule Follow-Up Visits: If necessary, arrange second viewings for your top choices to confirm your decision before making an offer.