3 Crucial Open House Tips

Buying a house is one of the most significant investments you'll ever make, and with that comes the fear of overpaying. In a competitive real estate market, it's easy to get swept up in the excitement and accidentally pay more than necessary. So, how can you protect yourself and avoid overpaying for a house? One key area to watch out for is the open house. While it may seem like an innocent way to browse homes, attending open houses can leave you vulnerable in surprising ways.

In this post, we’ll cover three reasons why you should be cautious at open houses and how to navigate them to avoid overpaying for a house.

1. Talking Too Much to the Listing Agent Gives Away Your Leverage

At an open house, it’s natural to want to ask the listing agent questions about the property. However, oversharing can work against you. Listing agents are working on behalf of the seller, so any personal information you give—such as your budget, your eagerness to buy, or your thoughts on the home—can be used to the seller’s advantage. This can put you at a disadvantage during negotiations, as the listing agent will already know how much you’re willing to pay and how interested you are.

Tip: Walk through the open house quietly. Collect the handouts, but avoid long conversations with the listing agent. Save your questions and thoughts for your buyer’s agent, who can dig into the details for you.

2. The Listing Agent May Assume You’re a New Client

Open houses are not just for showcasing homes; they’re also a way for listing agents to pick up new clients. If you attend an open house without your buyer agent and don’t disclose that you’re already represented, the listing agent may assume they can represent you. This can lead to complications when it’s time to make an offer.

For example, if you attend multiple open houses for the same property, the listing agent may think you’re a serious buyer who might not have representation. When your buyer’s agent eventually steps in, it can create an awkward situation with the listing agent, who might have been hoping to represent both you and the seller. This dynamic can negatively impact negotiations.

Tip: Always let the listing agent know upfront that you’re working with a buyer’s agent. This sets clear boundaries and avoids misunderstandings.

3. The Listing Agent Represents the Seller—Not You

Remember that the listing agent’s primary loyalty is to the seller. Their goal is to get the highest possible price for the property, which may not align with your goal of paying a fair or lower price. In Ontario, while it’s legal for one agent to represent both the buyer and seller, this can create a conflict of interest. It’s tough to advocate for both parties when their objectives are completely opposite—one wants to sell for the most money, and the other wants to pay the least.

Tip: If you’re seriously interested in a property, discuss everything with your buyer’s agent. They will have your best interests in mind and can ensure that the negotiations stay balanced.

Be Careful Even Outside the Home

It's not just what you say to the listing agent inside the home that matters. Increasingly, homeowners are installing video cameras—such as Ring doorbells—that record conversations happening outside the home. This means if you’re chatting with your family or friends about how much you love the house while standing on the front porch, the seller could be listening. This could weaken your position during negotiations if the seller knows you’re emotionally invested. Watch our full video here.

Tip: Keep all discussions about the property inside your car or away from the home. If you have questions, bring them to your agent, who can handle the negotiations without giving anything away.

Final Thoughts

Attending open houses can be a great way to explore homes, but it's crucial to navigate them strategically. By limiting your conversations with the listing agent, making your representation clear, and protecting your leverage, you can avoid overpaying for a house. Remember, your buyer’s agent is there to guide you through the process, so lean on them to ensure you’re getting the best deal possible.

For more tips on buying a home and avoiding costly mistakes, contact us today or check out our video on how to navigate real estate showings with confidence!