Duplex purchase but seller will not let me see other side

Investor · Stuart, FL · Member since 2017 · 44 posts · 6 votes

Hello BP, new investor here attempting to buy my first investment property. I have recently looked at half of a duplex (vacant) to owner occupy with my agent and everything seems great except the seller will not allow me to see the other half unless I make an offer and we agree on a price. There is a tenant in the other side right now and she claims that she does not want to disturb the tenant and only wants serious buyers. Does this make sense to anyone because it seems absurd to me. I am not an investor living in another part of the county for example and everyone is well aware of this. I really like the property and the numbers work for me. Does anyone have advice? My gut tells me to move on but I really like the place.

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Cody L.

Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes

Totally reasonable. I'd do the same thing. Except I might not even show you the vacant one. Nothing wrong with him showing you the vacant one and then waiting until there's an actual contract in place or at least it appears that you guys are going to be able to come to an agreement on price shows you the other one and disturb the tenant. Especially if the units have the same layout. What do you need to look at that can't be accomplished by pictures until you go under contract? The fact there is someone living in their **** at least a sure you that it's not a total massive down unit. When I buy a place I don't even bother setting up an appointment to view until I have it under contract. I might drive-by and kind of walk the property but I don't even want to waste my own time viewing until I know I've come to an agreement on price and terms with the seller

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Keith Scott
Wholesaler · Cleveland, OH · Member since 2016 · 33 posts · 15 votes
9y
Hi Paul, I would probably pass on this one as well. How does she expect you to make a legitimate offer without seeing what your buying. You could make an offer and add a contingency based on the house passing an inspection which would allow you to see the other unit and have some protection to back out if you don't like the other unit.
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Account Closed
Investor · Scottsdale, AZ · Member since 2016 · 1k+ posts · 885 votes
9y
@Paul Tibok If they won't let you see the other side, RUN - It's a hoarder house! Or, a cranky old guy lives there that you don't want to hassle with. ;-) They are not a serious seller. No one in their right mind would make an offer unless they could see what they are buying as an investment.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
Make an offer contingent on all normal outs, financing, inspection etc. as well as being personally satisfied with the condition of the second unit.
Likelihood is he has not informed his tenant that he is selling.
10 Reply
Cody L.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
9y
Totally reasonable. I'd do the same thing. Except I might not even show you the vacant one. Nothing wrong with him showing you the vacant one and then waiting until there's an actual contract in place or at least it appears that you guys are going to be able to come to an agreement on price shows you the other one and disturb the tenant. Especially if the units have the same layout. What do you need to look at that can't be accomplished by pictures until you go under contract? The fact there is someone living in their **** at least a sure you that it's not a total massive down unit. When I buy a place I don't even bother setting up an appointment to view until I have it under contract. I might drive-by and kind of walk the property but I don't even want to waste my own time viewing until I know I've come to an agreement on price and terms with the seller
12 Reply
Brandon Johnson
Austin, TX · Member since 2017 · 61 posts · 32 votes
9y
@Paul Tibok
I'm sure it's safe to safe that anyone in this situation would be weary. Imagine worse case, low ball and offer and if she accepts make sure you have ways out in your contingencies.
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Cody L.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
9y
Ken Min I totally disagree. This guy may have listed his duplex for sale, and has 5000 people I'll contact him saying "can I view inside?" He doesn't know the tire kickers from the wannabes from the actual performers. So he'll set up a time to view the vacant unit and then say that once there is an LOI or something on paper he'll show the other unit to weed out the lookers. I totally 100% stand by what the seller is doing. But as a buyer, if you're not comfortable with this then simply walk. The property will then just get sold to someone like me ;)
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Paul Tibok
OP
Investor · Stuart, FL · Member since 2017 · 44 posts · 6 votes
9y
Well the thing is while I was looking at the property the tenant came outside and we talked to him. The house is on the market for rent and for sale. You are right he was not aware, but he is now because my agent and I told him. My agent asked if we could look at his side and he declined which I could understand but now it is 3 days later and still the seller will not agree to let me in.
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Christopher Phillips
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
9y
@Paul Tibok
This is actually common. A lot of homes on the market with tenants have issues with getting access because the tenants complain or make excuses why no one can come over.
Just make you offer with contingencies that will eventually give you access for inspections.
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Paul Tibok
OP
Investor · Stuart, FL · Member since 2017 · 44 posts · 6 votes
9y
The only pictures available are from the vacant side. I can understand the seller wanting me to make an offer before I view the other side, but she wants us to agree on a price not just make an offer. I just don't see how this would be a smart business decision and especially for a first time investor like myself. It is true the both sides are identical but it could be a train wreck in there.
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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
9y
Originally posted by @Paul Tibok:
The only pictures available are from the vacant side. I can understand the seller wanting me to make an offer before I view the other side, but she wants us to agree on a price not just make an offer. I just don't see how this would be a smart business decision and especially for a first time investor like myself. It is true the both sides are identical but it could be a train wreck in there.
If she lies about the condition of the other side and as a result you agree on a price that you aren't OK with now that you've seen the other side, you're just going to walk or renegotiate price anyways, so there's no incentive to flagrantly misrepresent things.
As long as you have an inspection contingency in place, assuming Florida contracts are basically like California contracts, you're risking nothing by tying it up in contract (so it's yours if you want it, and you pass if you don't), and then verifying the condition of the other unit.
Once under contract, let your lender know immediately (assuming you are getting a mortgage at all, of course), but at the same time let them know that you aren't sure that you want it.
7 Reply
Aaron Lovett
Realtor · Smyrna, TN 37167 · Member since 2013 · 248 posts · 147 votes
9y
@Paul Tibok, in our area with listed properties this is very normal, same as what @Christopher Phillips said.
When dealing with occupied rentals, we make offers with a contingency stating that when the offer is accepted, the buyer will have the opportunity to view the property and be satisfied with it. If you aren't satisfied, you'll walk away no questions asked and get your earnest money back. If you like it, call in the inspectors, contractors, whoever you like.

It makes sense to me, because I see it all the time, although I understand the hesitation. Looking at it from the sellers' point of view, they don't want to disturb their tenants' right to quiet enjoyment of the property. Some may not want to alert the tenants that it's for sale. So, instead of doing dozens of showings to semi-interested people, they only show to people who will offer what they will accept.
7 Reply
James Russell II
Investor · Amityville, NY · Member since 2015 · 6 posts · 5 votes
9y
makes sense to me if your a tire kicker... cant bring everyone into tenants space because they like the duplex ....
1 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
That's standard in my market to only see one unit, then view the other units when under contract.
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Kevin Lefeuvre
Los Angeles, CA · Member since 2016 · 565 posts · 391 votes
9y
as @Cody L. and @Chris Mason said, this is very common in California. 9 MF out of 10 say this right on the MLS listing.
Add an additional language in the offer to emphasize the contingency. Also, here in CA you have usually 3 days before funding the escrow. You may visit the other part right after the contract and BEFORE the 3 days period. Walking away will be even easier this way, if you decide so before funding the escrow.
1 Reply
Steven Knudsen
Rental Property Investor · Elkhorn, NE · Member since 2016 · 6 posts · 2 votes
9y
Not to worry. Just include contingency of inspection and acceptance of other side.
0 Reply
Kevin Phu
Rental Property Investor · San Diego, CA · Member since 2016 · 507 posts · 171 votes
9y
I'm going to go with what others have said and put an offer in that will allow you to view the other unit and with contingencies that will allow you to back out.
I completely understand the seller's side of not wanting everybody and their mothers tire kicking and disturbing the tenant all day long.
If you like what you see on the vacant side and are serious about the place, put in an offer with contingencies and a refundable EMD. What do you have to lose?
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Jeffery Waicak
Investor · Massillon, OH · Member since 2015 · 266 posts · 156 votes
9y
I would agree. Offer as you normally would, add a contingency that when offer is accepted, you have 3 days to view the unit and if all is acceptable, put up earnest money.
That's a better plan for the seller. If you have his property tied up for months, then back out on a contingency you I think, get your earnest money back
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Frank Chin
Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes
9y
I had invested mainly in duplexes and triplexes, and this is very common.
I have to agree that many lookers are tire kickers, with me among them. I see an average of 75 to 100 houses before making an offer. I can see some owner make tenants to allow showing, where for some who don't care, you'll have to step over their mess, and I have to apologize, or hear them grumble they have to straighten out the place every day, and make sure the stuff is not stolen. Some owners show occupied rentals while the tenants are out.
I lived in an apartment complex once, and the landlord requires you to allow showings after you give notice to vacate, and allow showings even if the tenant is not there. Building personnel accompanies the lookers, but I believe during these showings, either during or after, my apartment was burglarized. In the beginning, I believe allowing showings was no big deal, afterwards, I feel violated.
Like others said, make an offer contingent on your seeing the other unit.
1 Reply
Chris Purcell
Investor · Philadelphia, PA · Member since 2010 · 739 posts · 372 votes
9y
Bail out clause
Re-negotiate once you see it
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Steve HodgdonPro Member
Investor · Novato, CA · Member since 2015 · 432 posts · 321 votes
9y
That's what contingent means. Tenant is entitled to quiet enjoyment.
0 Reply
Paul Tibok
OP
Investor · Stuart, FL · Member since 2017 · 44 posts · 6 votes
9y
Thank you everyone for your feedback, very helpful it took a big weight off my shoulders. Can anyone reply as to what exactly the contingencies or clause should state to me before I submit this offer? This is my first property so I just want to triple check before I sign anything! Thank you in advance
0 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
Your agent should be able to include all necessary escape clauses when you explain to him your concerns.
I have also included a blanket clause of being able to escape without cause or penalty.
0 Reply
Will Kirkendoll
Lorain, OH · Member since 2017 · 111 posts · 53 votes
9y
if you want it. make an offer and put a few contingencies in the offer so you'll have a way out
2 Reply
Aaron Lovett
Realtor · Smyrna, TN 37167 · Member since 2013 · 248 posts · 147 votes
9y
@Paul Tibok, technically only a lawyer can dictate the specific wording for you, or if you are using a Realtor that person can write it into the contract, although it doesn't have to be complicated at all. You are just adding to your purchase and sale a stipulation that the offer is contingent on your satisfaction with the property, and that if you aren't satisfied with it, the offer is fully rescinded, monies are returned, and both parties are relieved of any further obligation to each other. If you want some help with it, I'd pull in an attorney or a local Realtor. Cover your bases but don't get fancy.
1 Reply
Christine Kankowski
Real Estate Broker · Temecula, CA · Member since 2014 · 992 posts · 782 votes
9y
I understand not wanting to bother the tenant, so if they say the other side is essentially the same layout and condition, you should be able to make an offer. An offer is only an offer. IF you are not even close on the price, then no need to bother the tenant. If you agree on a price, they will let you in to see the property. You can always back out if it is not up to the condition you expected, or renegotiated the price.
No need to move on, if this could be a great deal for you.
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