Seller will not allow me into the property

Buying & Selling Real Estate
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Seller will not allow me into the property

Lesley Govan
Investor · Stratford, CT · Member since 2015 · 110 posts · 16 votes

Hi,

I found a house driving for dollars, I did my research and found the owner, sent a letter and he responded. I spoke to him on the phone and he actually was a little hostile but still said the property is for sale. "Make me an offer"! I asked if I could get in to see the property, he said no. I have walked the property (vacant), it is a duplex, I know it has been vacant for at least a year and needs a lot of work but it's in a very desirable area. From the looks of it, I think he's a hoarder.

Anyway, my question is, is it a good idea to make an offer on a property without getting inside? I'm not comfortable with it but wanted some opinions. Even with worst case scenario numbers it may still be a good buy for the right price.

Thanks

Lesley

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Wade Sikkink
Real Estate Investor · Lincoln, NE · Member since 2013 · 584 posts · 353 votes
10y

Make your offer contingent on a full inspection of the property.  If they inspection results are not to your satisfaction, then you walk away.

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  • Cody Campbell
    Investor · Livingston, TN · Member since 2016 · 155 posts · 112 votes
    10y
    I would look in every window and make my assessment and offer based on worse case scenario. If you think it may need to be gutted, make your offer based on that. How does it look structurally?
    0Reply
  • Wade Sikkink
    Real Estate Investor · Lincoln, NE · Member since 2013 · 584 posts · 353 votes
    10y

    Make your offer contingent on a full inspection of the property.  If they inspection results are not to your satisfaction, then you walk away.

    4Reply
  • Lesley Govan
    OP
    Investor · Stratford, CT · Member since 2015 · 110 posts · 16 votes
    10y

    Thanks for the feedback!

    I tried to look in the windows, lol, he has every window boarded up or the blinds pulled! It's sealed up tight that's why I think he's hiding a lot!! He may be a little crazy...lol 

    The structure looks pretty good, it was built in 1939, porches are rotted and full of junk, the garage is full of junk and falling apart and needs new roof. The yard is a mess with old rusted out boats on trailers sitting in the yard. He says he wants $400,000! Houses/duplexes in that area with everything redone are only going for about $300-$350.

    I'm excited about this property because it could be a real money maker for the right price! I'll keep you posted on what happens.

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    10y

    @Lesley Govan, there is a property in my area that the owner wants $1 million for. It isn't worth close to $1 million right now. He's content to wait...

    You say the structure looks pretty good, but then say that the porches, garage and roof all need to be replaced and the windows are boarded up so you can't see inside. I would guess the inside needs to be at least gutted to the studs. You wouldn't normally find a home in pristine condition on the inside, with all the other stuff in need of replacement...

    He might be a little crazy, he might be a lot crazy. Be careful when you visit, and be careful when you make the offer. If he is so unreasonable on the price, he might get really offended if you give him a low offer, which is what this property justifies.

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  • Timoteo Guy
    Real Estate Broker · Seattle, WA · Member since 2012 · 76 posts · 14 votes
    10y

    Offer contingent inspection. You always want to cover your back! 

    1Reply
  • Lesley Govan
    OP
    Investor · Stratford, CT · Member since 2015 · 110 posts · 16 votes
    10y

    @Mindy Jensen Thanks! Good advise! @Timoteo Guy thanks

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    10y

    When I look at houses, if there are things I cannot see/test/inspect, I make my offer based on the assumption that the feature needs to be replaced. For example, if I can't turn on the heating system, I include a new furnace in my figures. If I can't turn on lights or the water heater because there's no power, I assume extensive wiring and a new water heater will be required and price accordingly. If a seller objects to my offer, I explain (through my agent) some of the basis for that offer, and if they want to demonstrate that some of my assumptions are wrong by turning on the power or the heat, I'd be more than happy to reconsider the offer. 

    In this case, since you can't even see inside the boarded up windows, I would assume the property needs plumbing, wiring, drywall, doors, kitchen & bath fixtures, and windows, and price accordingly. 

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  • Dustin Beam
    Kansas City, MO · Member since 2015 · 609 posts · 321 votes
    10y

    If he's truly a hoarder, will he actually let go of the house?

    0Reply
  • Lesley Govan
    OP
    Investor · Stratford, CT · Member since 2015 · 110 posts · 16 votes
    10y

    @Dustin Beam I don't know. It is a Duplex and people were living in both units.

    @JD Martin Yes, I will price it accordingly although I will be the one making the off not an agent. A little scary, but if he will meet me for coffee I might be able to talk to him and feel him out. I need to find out what he needs and try to make it win-win 

    Thanks for the feedback!

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  • Mark Williamson
    Flower Mound, TX · Member since 2016 · 4 posts · 1 vote
    10y

    Sounds like you're buying a nightmare. Over priced one too.  Sorry, but maybe I'm not savvy enough or don't know much about the deal but from what you've described, he sounds like a reluctant seller.  "make me an offer" is double speak for "I'm being forced to sell" IMHO.  This means difficulty vacating too.

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  • Terry Martin-Back
    Property Manager · Gainesville, FL · Member since 2014 · 47 posts · 20 votes
    10y

    Check for municipal liens from Codes Enforcement as well as tax liens and judgments in public records, if the place is as bad as you say it is. First rule of thumb for investing; never fall in love with a place. Second rule; If you can't see it, offer half and when they hang up on you, they just saved you some time... Good luck and keep looking 

    0Reply
  • Lesley Govan
    OP
    Investor · Stratford, CT · Member since 2015 · 110 posts · 16 votes
    10y

    Thanks @Mark Williamson, I hear you, the building is vacant tho and has been for over a year.

    Also, Thanks@Terry Martin-Back I will look into that.

    0Reply
  • Michael D.
    Investor · San Jose, CA · Member since 2011 · 355 posts · 90 votes
    10y

    You are wasting your time. He wasn't trying to sell it - you called him. Of course, as he said/implied, anything is for sale for the right price. "Make me an offer" means "If you want it badly enough to pay a big premium, then please let me know." - that's all. I'd say the same thing if you walked up and asked to buy my house - and I wouldn't waste my time or privacy letting you inside it either. Why bother?

    0Reply
  • Mark Williamson
    Flower Mound, TX · Member since 2016 · 4 posts · 1 vote
    10y
    Originally posted by @Lesley Govan:

    Thanks @Mark Williamson, I hear you, the building is vacant tho and has been for over a year.

    Also, Thanks@Terry Martin-Back I will look into that.

     Ok, I thought you said the windows were boarded up tight and you could not see in, nor would he let you in, so how do you know its vacant?  Vacant does not mean empty.  Could be a meth lab for all you know.

    0Reply
  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    10y

    @Lesley Govan

    I personally believe you should walk away. The seller already told you they want $400,000 for the place and you said properties in the area are selling for $300-500K completely redone. Basically this person wants to sell you a complete remodel at the ARV price. There is no deal.

    The seller is living in fantasy land and is not yet desperate enough to accept an offer that would give you a good amount of profit.

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    10y

    You are wasting your time. Find someone that is really interested in selling.

    0Reply
  • Lesley Govan
    OP
    Investor · Stratford, CT · Member since 2015 · 110 posts · 16 votes
    10y

    I agree with you all! Thanks for taking the time to give me your opinion. 

    0Reply
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