I am seeing many post they are waiting on an accepted offer prior to actually seeing the property first hand. How can this be beneficial other than beating another investor to the punch if you will? I have looked at 2 places in particular that would have been disastrous had I purchased prior to seeing them, as the pictures only show the best parts of the homes. Do you make really low ball offers & pray for the best? I am also not understanding how you can back out of a deal after it's accepted & find these type issues. Are you offering earnest moneys with these offers? Can someone please elaborate on this as well?
Offer is contingent in inspection within 7 days of acceptance of buyer's offer. Simple. It's all about the numbers.
@Kimberly N. , i do the same... rather than to waste time looking at each property, make an offer with inspection contingency and go look at the house only after they accept or counter the offer.
I personally wouldn't make an offer on property I haven't went to look at first. As you said, there has been some pretty disastrous homes before, and the seller isn't going to put that in their listing. I know in Wholesaling it's easy to make offers on property you haven't physically went to see yet because chances are the entire place is going to need a rehab, so you're supposed to make an offer you almost feel embarrassed about.
About backing out of an offer after it already has been accepted can be means for a lawsuit. Bare with me here because I am not a lawyer, so what I am telling you is strictly from me doing research on RE Laws and others shared experiences. If you have a contract in place with a seller, you accept and then try to back out there's something called Specific performance. If you and the seller have a purchase agreement it's your duty to meet the specific requirements within the contract. HOWEVER - With that being said, if there is a contingency included in the purchase agreement, you inspect the home, and you are completely dissatisfied you do have the option to opt out of the purchase agreement. You should always use a EMD (Earnest Money Deposit) in your purchase agreement so that in cases like this where you make an offer, go inspect the home and it isn't to your liking then you can legally opt out of the contract and just lose out on your EMD. Which beats being sued for breach of contract if you ask me.
If you have any other questions, I'd be happy to answer them to the best of my knowledge!
Have a good day,
I think it's a very unethical practice but few will agree with me.
TY for all the info!
Google it on Earth, roads. Peek on the outside. Talk to neighbors. Make reasonable assumption you need to fix the interior.
This is what inspection, feasibility, and other clauses are for. And if they are worded correctly, you won't lose your Ernest money, because it is part of the contract.
For those saying it's unethical, I answer that it is also unethical for the seller to misrepresent a property that is in dire condition as being good to go. If your inspection reveals problems, and they cause the deal to not work, then don't do the deal and use your escape clause to get out.
I just closed on a property that the agent wouldn’t SHOW until getting an offer. I figured there’d be less competition from other lookers. My agent put in an option period clause for a nominal fee that allowed me to back out for any reason for 7 days and the offer was still subject to inspection. I never saw the house as i was traveling for business. My wife met the inspector at the property and walked it. I didn’t see till day before closing walk through.