Property Walkthrough Prior to Offer?

Question

Good afternoon Bigger Pockets forum! I am a new investor and this is my first post to the forums here!! I am currently facing an issue that I would like to get experienced investors opinion on to see if my thoughts are warrented or not.

I have started doing a lot of searching for my first deal and have come across a property I really like. I recently asked to schedule a walk through of the property prior to submitting an offer. The property is almost 40 years old so there are certain items I want to see prior to going in on it. I was told that I cannot do a walk through until an offer is submitted and accepted. I was also told by the realtor that the tenants do not know the property is for sale and to not try and get in touch with them about it. Is this a common practice (the realtor trying to weed out anything but serious buyers), or something that is a bit out of the ordinary. My initial thoughts are along the lines of the realtor and/or buyer trying to keep certain things hidden.

Thank you in advance for any help and opinions that you can offer!!!

Bill F. · Answer

@KC Jones Its not that common, but I've seen it a few times. It does serve to keep some tire kickers away and is more prevalent in investment properties.

You can do your walk through when you insect the home. I only walk through a property once. I run the preliminary numbers using the pictures online to make a guess about rehab cost, make an offer with a home inspection contingency, put up some cash for escrow and walk through the home with your home inspector. After the inspection I refine my numbers to see if my offer price is still works. I begin to negotiate concessions with the seller if the deal allows it.

I wouldn't worry about them hiding something. If they are, it will come to the surface if you conduct a through due diligence.

Mike Abramowitz · Answer

Personally I've never heard of a realtor doing something like that (wholesalers, yes this is not too uncommon) ... however, you could always put in an offer with the walkthrough contingency and then back out once you've seen the place.

You could also provide them with a POF and a preapproval letter to show them you're serious and have the ability to purchase the property. If the tenants are not aware this house is for sale I'd be sceptical of how great of quality they are. Sounds like some problems tenants that don't like allowing people into their units.