Real Estate Agent · Phoenix, AZ · Member since 2016 · 738 posts · 1k+ votes
Let's imagine you had a property that you're interested in, and the seller or listing agent is asking for offers subject to inspection and doesn't have any interior pictures of the home or won't let you in to view it before making an offer... and the property is waaaaay overpriced.
How would you approach the situation? Should you try to negotiate immediately and make a lower offer upfront? Or just write an offer for full-ask and then negotiate afterwards?
I have a property I'm working on for a client, and the home is WAY overpriced, by at least $75k which is a huge deal in this price range (sub $300k). I have the comps to prove it, am trying to discern whether I should bring them up now before writing the offer, or wait until after the inspection to present them along with additional findings.
If we were closed on price I'd probably just offer ask and then negotiate down, but in this case we have absolutely no intention of paying anywhere near asking price and don't want to give off that perception to the seller.
What kind of agent would refuse to allow an interior inspection? NUTS if that is the case. Find another agent to work with. I would never consider an offer to purchase without an inspection unless it was pennies on the dollar and the land value greatly exceeded the offer.
Honestly I would just call the agent and say "What's the deal that is preventing a viewing of the property before an offer?"
Try and see if there is something that actually makes sense (Crime scene and the feds got the doors taped up) or what kind of information they can give, I would even try and ask why it has a value that is 75k over comps?
Overall though I wouldn't bother bidding site unseen on something way over priced with out the ability to see it. Negotiating without any information on what you are buying is not from a position of strength, it is more like "or trade for whatever is behind door number 2"
@John Thedford -- it's pretty typical out here, especially for 2-4 multifamily properties. In part I think it's just lazy agent syndrome, but sometimes sellers don't want to disturb the tenants unless it's a serious buyer. And to them we're only serious if we're willing to write an offer subjection to inspection without seeing the interior. I understand that they don't want a bunch of tire-kickers and wannabe investors, but I agree with you that the whole thing is pretty ridiculous and just makes the proceeding all the more complicated. Frankly, I think proof of funds and perhaps a letter of intent should be enough, so perhaps I can try that.
POF is always a good indication of ABILITY. Sure beats the heck out of the unlicensed brokers and their "subject to partners approval" and other BS escape clauses! Weed out the buyers from the "other" crowd:)
Didn't realize it was a multi. You should at least be able to see the common areas and get a general feel for the upkeep with a proof of funds. I can understand not disturbing the tenants but it's easy enough to get you in to the hallways and basements without them even really noticing. If you see a mess then don't bother.