Skip to content
Welcome! Are you part of the community? Sign up now.
x

Posted over 10 years ago

Making offers sight unseen

I do not make offers sight unseen. I want to see a house in person before I make an offer so I can see anything that needs work, smell if there is any bad odor that would tell me of problems (pet urine, anyone?), and hear if there is anything I should be worried about (mice scurrying about, running water, etc.)

So I went to a property today which was described as a 3 bedroom, 1 bathroom single family home with a 2 car garage. It was listed at $20,000 as a short sale. When I got there the listing agent was there and he said he already had 6 offers on the property from people who hadn't yet seen it (at least on the inside).

Really? I don't know how they do it.

When I walked the property, I could immediately see that the roof needed to be replaced. Okay, so maybe these other people accounted for that.

I also saw that the property did not have a 2 car garage as listed, it was only for 1 car and there was a carport. Okay, so maybe these other people accounted for that too.

There was some soffits that needed work. Maybe they saw all this as well.

But what did the inside look like?

- Windows on the house were all older. Several were covered in plastic which tells me they are old and drafty. $$$

- The floors on the lower level are all hardwoods, but they need to be refinished. $$

- The carpeting on the upper level was dirty and old; it would definitely need to be replaced. $$

- I walk into the kitchen -- key, there are like no kitchen cabinets -- someone ripped most of them out! And so no counter tops either! $$$

- And there is water actively running in the kitchen, spilling all down to the floor. Just running and running. So I head down to the basement. Yep, water is leaking down to the basement, running all over the floor and eventually into the drain. I look over at the laundry tub and there is ice inside of it. Polar vortex = pipes burst; this means plumbing issues. $$$$

- So if there's water coming from the kitchen, how does the water heater look? Well it looks invisible, because guess what? It was stolen! $$

- Hey, look at that -- someone stole the furnace as well. That's why the pipes froze and burst, there was no heat and the property had not been winterized. $$$

- I go back upstairs and head to the bathroom. There is what appears to be ice in the toilet. Wait, what's this? I walk around the toilet and it feels kind of funny. I think perhaps the bathroom floor might need to get replaced too! $$

Quite a bit of stuff wrong with the house that I would have not known about had I not seen it in person.


Comments (3)

  1. I make most of my offers sight unseen. I like to make a lot of offers and it just isn't practical to try to see them all. I also have no love of going through houses all day so I only want to hit the ones that I think I might actually buy. Now interestingly I would NOT make a blind offer on the place you described because it is too cheap. With all the work you described it sounds like it very overpriced. At least that is my impression since based on previous posts and stuff in the forums and your podcast I think you can get good rentals in the area in the $20s and $30s without much work needed.


  2. Dawn, I share your perspective. Only once did I make a sight unseen offer - as I was travelling the day my agent called. Even then, the offer was made conditional on walking through the property upon my return. If I cannot walk a property myself, then I need a local contact whom I can trust to be my eyes, ears, & nose on the ground.


  3. If there's an REO in areas I invest in that drops to under 10k I'll put an offer on it sight unseen. Nothing over 10k though. It's rare they drop that low but if they do there is immediately half a dozen offers on it.