Having an Open House

I wrote this post on Sunday, while at an open house. Everyone does open houses differently, based on the type of property or the realtor’s preferences. Some realtors think that open houses are done for the property to get more exposure and some think that it is done for the realtor to get more clients. I like to do open houses for the seller. I advertise in the local newspaper and I put up signs. Sometimes people come because they have seen the ad in the paper; sometimes they come because they have seen the signs. Often, people who come to open houses are people who are not working with a realtor who searches the local multiple-listing system (MLS). This is a way to see the property.

Here in Grand Junction, it is best to have open houses on Sunday. When they are on Sunday, it is best to have them not conflict with baseball games or football games. Realtors CAN have open houses then, but most people don’t show up during the games. They are watching their team instead.

I choose a time slot of 3-4 hours either before or after the game. I have 6 open house signs and I like to have one in the front yard and put the other 5 around two ways to get to the house. I place the open house signs on major roads and then at turns to the property. I like to have 1-3 balloons on each sign. I make sure the signs are obvious at a street corner and that the balloons are tied to the sign with a short ribbon. I don’t want the balloons to be in the way of people who are biking or walking.

Inside the house, I like to have information available for them. I place the information closer to the door than I am standing or sitting, so they don’t have to go past me to see it. I want them to feel comfortable picking up materials, but not pressured to do so.

I like to have a flyer with details about the property and a flyer with financing information. People are curious about the monthly payments and how much money they need for a down payment.

I also like to have little bottles of water, my keyboard cleaners, and business cards. Sometimes I have a jar for a drawing for a gas gift card, movie tickets or something like that. People don’t have to give me their information when they meet me, but if they are interested in the drawing, they will fill out their name, email, and phone number. After the open house, I can let them know if they won anything or not, thank them for coming, and let them know that I’d be glad to help them find a home to buy.

When people arrive, I usually greet them, introduce myself, and give them the flyers. I tell them I’m available for questions, then I usually let them wander on their own. Sometimes I’ll make comments or be nearby (if the house is big or currently occupied), but I like to give them time to look and talk without interruptions.

People stay for different lengths of time. Usually the longer people stay, the more they like it or the more curious they are about the property. At the end, I gather up my stuff and give a report to my seller. Today’s open house had three different parties—one couple, one mom with two older daughters, and one neighbor. (There usually is at least one neighbor who shows up out of curiosity.) If there aren’t any offers or showings in the next couple weeks, I’ll have another open house at the same place. The more the property is in the public eye, the greater the chance of getting it sold!!

Blue Angels!

I was meeting with clients Thursday afternoon at the site where they are having a house built. The Blue Angels are doing an air show this weekend. They were practicing above us & I got this shot. Amazing how tight the formation is!!

New Month, New Deals

Right now I have 2 deals under contract. The buyers & I are hoping that both of these deals will close by the end of June.

The first deal is a bank-owned property. The property is a foreclosure. The original owners lost the house. Instead of giving the house back to Fannie Mae, HUD, Ginnie Mae, Freddie Mac, or another financial governmental agency, the bank decided to sell the house itself. The bank put it on the market with a listing agent. The buyer made an offer & the bank wanted proof of the buyer’s ability to purchase before the bank would agree to the sale. The buyer provided a letter of financial ability. Right now, the buyer has had the inspection & done everything needed. We are just waiting for the bank to do the paperwork so the title can be given to the buyer at closing.

The second deal is a buyer buying the property & a seller selling the property. These properties are easier to buy because the owner has lived in the house. Inspections are easier because the utilities are already on & working. Also if the seller is interested in selling the property, they will work with the buyer about inspection issues. As of today the buyer has done the inspection & the buyer & seller are negotiating on property issues. The property still needs an appraisal before the lender will give final approval for the loan. Once that is done, hopefully we will have a closing.

Deals Closed

So I have now closed on all 3 of my previous deals. That means that the buyers now own the houses & they are able to move in.

My first deal was the HUD property that needed a 203(K) loan to fix plumbing & other issues. Although originally we were given 60 days from contract to closing, we had to request two 15-day extensions to keep the contract alive. The extensions were because the lender needed more information about the property before approving the loan. Once all the information was provided, the loan was approved & we were able to close.

The second deal was the short sale with 2 lien holders. The second lien holder actually agreed to the sale only days before the house was going into foreclosure. The buyer, seller, first lien holder & the buyer’s lender were in agreement & were ready to go. As soon as the second lien holder agreed, a closing date and time were set. Everyone wired funds to the closing company, signed papers, & overnighted paperwork. It was a great closing because everyone was so happy that we were able to get it done before the house went into foreclosure.

The third deal was easy once Fannie Mae got the title. This house had been on the market as a short sale. The lien holder wouldn’t agree on the selling price set by the buyer and seller, so the house went into foreclosure. The bank gave the house back to Fannie Mae, who had insured it originally as an FHA loan. Fannie Mae put it back on the market with a listing agent. The buyer offered to buy & Fannie Mae agreed to sell. The buyer had done the inspection & the buyer’s lender had done the appraisal. The loan was approved. Once the bank signed over the title & it was recorded, Fannie Mae & the buyer closed on the property.

It is great to think of homeowners in all 3 of these houses!

Deals Moving Slowly

I have buyers under contract. Two got under contract in February and one got under contract in March. None of them will be closing in April. ("Under contract" is when the buyer and seller have accepted each others' offers, counteroffers, and terms of the contract.  A "closing" is when the buyer and seller get together and sign lots of paperwork. At the end of the closing, the title of the property has been transferred from the seller to the buyer.)

None of these deals are simple. One is a HUD property that needs a 203K loan to fix the plumbing and other parts of the house. These deals can take 60-90 days. One is a short sale property with 2 lien holders that need to decide how much money is acceptable for each lien holder to lose. These deals can stretch until the buyer gives up or the property goes into foreclosure. One is a property that  Fannie Mae put on the market for sale, but doesn't officially have the title yet. These deals are dependent on who actually has the title to the property.

These 3 are good examples of the real estate market these days. When there is a simple transaction between a seller and buyer, and the house has been occupied (so that you know the utilities all work), and the seller has the title, and the buyer is paying cash or can get a good loan, the time from being under contract to closing can have a length of 3-6 weeks. When there is a complicated transaction between a seller and buyer, and the house may or may not have been winterized properly (so that you don't know if the utilities work), or a bank or the government has title to the property, or the buyer has more and more papers and tasks to provide before getting loan approval, the time from being under contract to closing can stretch out for several months.

I'm hoping that all 3 of these deals go through to closings because these people want these properties and want to make them good owner-occupied homes.