# The downside of Open Houses - Found a good farm too early



## dlskidmore (Apr 18, 2012)

We won't have the down payment to buy our homestead until winter, but the farm real estate market is rather slow, we don't want to buy land we've not seen before in winter, and we could use the education about farm shopping, so we've been going to open houses. 

We've seen four places so far. One that I could make work if they'd lower the price enough, two that were completely unsuitable, and on Sunday we saw one that was downright suitable. 

It's not perfect, but it's a very good compromise between what hubby and I want in a home, and it's very near functional as a small ranch. I'm suddenly very impatient and my brain is trying to work the angles to buy before we're really ready...


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## chewie (Jun 9, 2008)

well, jumping before you're ready seldom works out, keep that in mind. I know its hard, believe me, I know. I think its great you're looking and learning tho.! and if its right, it'll be there when you're ready. honest!


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## edcopp (Oct 9, 2004)

Downside, well there are lots of them. Especially for the seller, he is the one who has a lot to lose.

There are couples or twosomes who appear to be couples who go from house to house "shopping" The problem is what they are really shopping for. They will inventory all of your guns gun cases, hidden spaces where valuables may be kept. They will get the Realtor to tell them all she knows about the security, system or lack of one. Where the wall safe is, and where the drugs are. Who is home and when, and what doors or windows may be unlocked here and there.

Then the shoppers will have some information that they can sell to the right people. On to the next open house.

The shopper has some risks too. Beware of the house that smells like apple pie. A lot of the purchase is a snap judgement. The smell of apple pie is comforting and will put a buyer off guard. Possibly just enough to buy something that they really did not want or need.

Agent stops by the grocery store and buys a frozen apple pie. Then stops at the house about an hour before the open house. Places apple pie in the oven and turns it on according to directions and leaves. Upon arrival the agent goes in the house and turns the oven off, opening the oven door just a bit. Once in a while this can make an agent a few thousand dollars in commission money.

Most open houses do not sell to an open house shopper, for a number of reasons. Nine times out of ten the shopper will not be qualified to buy the house. No money is a big item. Now if you expect to have money in six months, you do not have money today (at least as far as you know). A good agent will be able to find out all about your wants and needs, and actually separate them. You probably can't do that.

Most of the time the agent will be able to help you find some money that you did not know was available. Often they can assist you in getting past some problem that you may be dealing with. Most people look at more house than they can afford. The agent needs to direct the suspected buyer to what they need rather than what they want. Then she can get paid.

Now you may have a house to sell before you can buy a house. A decent agent can figure out how to get your house sold, and sell you a house that you can live with. Then she can get paid twice.

The number one desire of the agent, other than getting paid, will be to interview (in a casual way) many folks like your self. People who need to buy and/or sell. People who can get her paid.

To sell the house that is listed, on an open house might not be a good thing. Then she would need to get another listing so that she could have open houses to get in touch with more real people who need her services. Well she does have a list, and likely it is a good list. There is more to this than pie in the sky


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## dlskidmore (Apr 18, 2012)

We have a buyer's agent that we've worked with before. She would rather not bother working with us until the bank gives us a rubber stamp, and I can see her point. It's a waste of her time to work with us and have the deal fall through later. The bank is happy with our income level and down payment in the price range we're looking at, but we need PMI, and PMI company is not fond of farms, so we're waiting until we don't need PMI.

Our current house is a money pit in a bad neighborhood, we call it the disposable house. We wouldn't dare hold an open house there unless we had already moved completely out. We are not counting on income from it to buy the next house, although it should cover most start-up expenses (fencing, equipment, foundation stock) when it does sell. Worst case we can get a few grand in tax savings by donating it.

We've been warned about the pie/cookies thing, but none of the open houses we've been too so far have done that. I do wonder though if everyone else has that much taste in furniture or if the real estate agent moved in some prime pieces for the showing, and the place with the hot tub had the settings all up on high, to get you to find it more inviting.

Our area didn't really participate in the housing boom/bust, so we may have a different real estate culture around here.

The barn really sold me on the place, and the agent didn't seem to take any trouble about that at all. Recent re-roofing job was done, some new door hardware, stalls downstairs, storage cubbies upstairs, full hay loft with old track and pulley system, cinderblock milk house that felt so cool on a warm day.

I have to let it go though. It won't be on the market forever, they'll either sell or give up and try again another year.


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## dlskidmore (Apr 18, 2012)

edcopp said:


> To sell the house that is listed, on an open house might not be a good thing. Then she would need to get another listing so that she could have open houses to get in touch with more real people who need her services.


I don't understand this comment. I've not seen repeats yet on the open houses, and most of the agents have not been the least bit pushy. How often do they re-use a house to fish for potential buyers to become agents for? So far we've been to four open houses. One agent asked us if we had our own agent yet, but only after we asked a question she would have to get back to us on (she wanted to know if she should give the info to our agent or us directly), two didn't bring up the subject, the fourth was a sell by owner open house.


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## Joshie (Dec 8, 2008)

dlskidmore said:


> I don't understand this comment. I've not seen repeats yet on the open houses, and most of the agents have not been the least bit pushy. How often do they re-use a house to fish for potential buyers to become agents for? So far we've been to four open houses. One agent asked us if we had our own agent yet, but only after we asked a question she would have to get back to us on (she wanted to know if she should give the info to our agent or us directly), two didn't bring up the subject, the fourth was a sell by owner open house.


When we were looking around at open houses the agents would sometimes ask us if we had an agent. We'd tell they we did and they'd never say another thing. Agents usually ask people to sign in. I used to enjoy going around to open houses. I was honest when agents asked what I was looking for.

We purchased this place directly from the previous owner. We'd have saved a boatload if we had used a real estate agent. We even had our own lawyer. 

I like open houses. It helps buyers get an idea of what's out there. They allow home buyers to see a bunch of houses in a couple of hours. This really helps home buyers know what's out there and they can help you to make your list of wants and needs.


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## dlskidmore (Apr 18, 2012)

Joshie said:


> They allow home buyers to see a bunch of houses in a couple of hours.


Not in our market! The first day we went out there were two houses, about a half hour's drive apart, but there's not even one every week that meet our search criteria.


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