An agent brought an offmarket deal to me. He says the process is that we first agree on sale price with seller. Then we sign contract with all contigencies. AFter that he will share address with me for me to go and inspect etc.
Is that true. What are the things you need to be careful about.
Sounds like maybe this "agent" is trying to wholesale the property and doesn't want you to go around them. I wouldn't put ANY offer on a property I haven't walked through first. Way too many possible pitfalls. If they don't trust you enough to show you the property before putting in an offer then find a new agent.
Do you trust this agent? Would you buy a house unseen? I don't like the shadiness of this deal, not knowing how much the house is worth if you can't see it first. What happens if you make an offer of $100,000, but then you see it and determine it is only worth $75,000? Now you look like the skeezy player for trying to renegotiate the contract after the fact.
If you know this agent, and he has brought good deals to you before, and you trust him/her, that is a different story.
I have never heard of this before. I would tread lightly.
Wow. I'm not sure what the Agent's role in this is or what they are trying to get. Is the approach that he/she would function as the buyer's agent? Personally, I wouldn't sign any purchase agreement without seeing the property. If the agent is simply worried about his/her commission, that's a easy fix buy signing a limited buyer's agreement. (At least that's what I would try in Texas.) You have to be careful, since some buyer's agreements are written as exclusive, so that any property you find - within the covered time period - would pay a commission to the agent, regardless whether that agent assisted with locating the property.
Thank you all for the fair warning.
What is the harm in signing the contract and then seeing the property immediately. One still has 3 biz days before sending in the deposit check (I think).
If I don't like it I don't have to send the deposit check and I easily back out. Can the seller come after you in this case?
I agree with all the others. I might write an offer, or better yet a letter of intent, on a property unseen but definitely not without an address and some due diligence.
what is the difference between LOI and offer. Is there a template for LOI.