Property owner won't show inside of home without full price offer

36 Replies

Ok.. call me crazy, but what does your spidey senses tell you?? 

Called on a property that I'm interested in. 2/2 MFR, $100k, pulling $700 each side. Looks like a C area. But, with some freshening up I think it could bring a bit more.

Perusing the very limited listing and get to the photos, and they're ALL of the outside of the building (pet peeve). So silly me calls the listing agent to ask if they have pics of the inside and she tells me, "the  property owner won't show the inside without a full price offer". Uhh, say what!? There was this awkward pause.... then I heard her light and take a big, deep drag off her cigarette with an over exaggerated exhale like she was thoroughly bugged. I asked "so, how can I make an offer or know if I'm interested if I can't get in to see what I'm buying or check for damage,etc." She then said to take a day to think about it and call her back.

Am I way off base here or is this just a lazy agent, a shady seller or something normal that's only understood by "real" investors? Is the market that HOT in KC that this is the attitude? Damn!, I can get that right here in Cali..

In her defense, she did call me back later saying he would take $95k.  :)

And what are your thoughts on the $100k/ $700 per side numbers?

Well, 1. I am currently dealing with a seller for one of my buyers that is the same way. My buyer can't even get a showing of the home without a 100% approval from the lender, but lenders don't 100% approve anything without knowing the property in and out.

I think, the listing agent has a major responsibility to her client to educate them that the best possible way to sell their home is to let people see it. Not even because people want to see it, but because it is a necessity to see a home before purchase - to the buyer, to the lender, to the buyer's agent.

Also, $100k for two $700/month doors, seems okay. We have those homes here in Dallas, but they aren't in the best parts of town. Just depends on your area, I guess. Rent in Dallas is pretty extreme even for the bad areas.

WTF? Is she a madam or a real estate agent? Are you going to spoil the goods by going inside just a little bit?

@Derek Wheeler

Is this the norm? Ive never heard of this before. 

I did tell the agent that I was pre-qualed and serious. Maybe that's why she said he'd take $95K. The other side of me thinks "if they'll drop 5% without even asking, why not offer $85K?" :D

BTW, what are the average prices for C, Duplex/four-plexes in your area?

Originally posted by Account Closed:

WTF? Is she a madam or a real estate agent? Are you going to spoil the goods by going inside just a little bit?

 LOL! Funny. Dirty, but funny. :D

Not the norm at all, but some sellers are weird. Honestly, I would suspect something to be up. Ask the listing agent why you can't go in. Just give yourself a good option period in the offer to find out if the seller is hiding anything.

For multi family apartments, offer subject to inspection is common.

Nothing wrong with it. The seller probably is not that motivated and does not want to show to unqualified buyer.

No reason not to have pics of the inside.  I can see limiting showings of the actual units until you are mutual on a sale.  Easy to put inspection contingency in.  Landlord tenant laws etc make it a pain, so I wouldn't want to deal with anything but a serious buyer.  

But no inside pics at all makes it seem shady....

there's only one reason for no inside pics and not wanting strangers walking through the house...classic hoarder case. Make sure you figure in the cost of new carpet before you make an offer.

CO Agent # FA 100073207

Originally posted by @Dustin Frank :

there's only one reason for no inside pics and not wanting strangers walking through the house...classic hoarder case. Make sure you figure in the cost of new carpet before you make an offer.

 Agreed. 

This is a weird situation and is a big red flag. The thing is that the people selling the house aren't smart enough to realize that us intelligent investors see it as a red flag. 

This post has been removed.

@Robert DeForge   It seems silly to not allow interior access, even to the basement, without a full price offer.  A lazy agent is one possible explanation.  An unreasonable seller is another.  Or it could be that they're trying to restrict access to serious buyers only.

However, the fact that the agent called back with a lower price is telling.

It tells you that there's no real competition, possibly because of the showing restrictions.  It also shows that the seller might be getting a little antsy.  The number of days on market will be a good hint, but compare his DOM to that of similar homes in the neighborhood.

If you decide to make an offer, make it subject to a home inspection to include all of the interior and exterior, with the right to re-visit with contractors if necessary.

Medium clear sailing logo  1600x489Charlie MacPherson, Clear Sailing Realty | 781‑412‑4151 | http://www.ClearSailingRealty.com | MA Agent # 9532146

@Robert DeForge - Great story. Yes and no. I would ask a few questions - are there 2 tenants in place currently? Then yes, it would make sense. Most investors don't want to bother their tenants (or have their tenants know they are selling!) for tire kickers. Now, the agent could just say that versus being super dramatic, but I've worked with enough other agents to know that's not always the case lol, usually they are exactly how you describe them.

Showing a pre-qual, a POF, or your portfolio (if you're a seasoned one) ought to be enough to say you're serious without bringing an offer. If they are still, frankly, being jerks and you are still interested, just write an offer at, say, 85-90k like recommended and say that's based off everything being good inside. Any major flaws will be deducted from the sales price. Realize that in this situation, you have a *MAJOR* advantage. Most people will A.) Run like hell B.) Refuse like you are then run like hell or C.) Put it off until some later date if there's anything else they were even less interested in. So let's just say offers likely won't be pouring in (also, if the agent is like that, probably other people and agents who know that person won't be flying to work with her (if she's this difficult now, can you imagine later in the game?!))

So personally, if you can be as intense as they are, you might have one heck of a deal! Make it work for you! =)

@Robert DeForge If you show the agent your bank statement, you have the funds to close I think you will get pass the front door and don't listen to gurus who say white out the account number and then when the agent call to verify the funds, they need the full account number.

Happened to me before.  Make the offer.   Then see the property.  If it isn't exactly what you want, then back out.  If you like it but it isn't exactly what you expected, re-trade the price down.  For example, the bathroom needs a remodel, then offer 5K less to close it.  Or cancel the contract.

Speaking as in Inspector and Investor, for small multifamily, it's not uncommon to run into this, simply to keep looky-lou's and tire kickers away.  In most states you have tenant notice requirements to enter the property, and this can be a hassle with tenants.  Especially in a C neighborhood.  As an inspector, I advise my clients that it's best to do inspections after going mutual, as long as there is an inspection clause.  

As for why there may be no interior photos?  Tenants, tenant belongings, and the concern, or worry about having photos of tenants belongings or living conditions, legal-wise, or just common decency-wise.  I wouldn't say this is a big red flag.  It's just something to roll with and keep in mind when submitting offers.

Medium logo640x400Troy Fisher, Lanika Home Inspections | [email protected] | http://www.lanikahis.com

Hello @Robert DeForge

If a full price offer was your price and you are willing to buy at that number, I don't see any issue with making the offer contingent on a home inspection (by you and an inspector).

Sellers can get fatigued when they get lots of calls from tire kickers who waste their time and bug the tenants.  I don't think it's that unreasonable of a request.

My only caveat would be that if you are worried about the seller, make sure your deposit (which should be minimal) is held by a title agency/attorney/escrow agent of YOUR choice.  If the seller does live up to your worst expectations, at least you can get your money back without a hassle.

Good Luck,

Bob

Medium shutterstock 129797951Bob Razler, GPG Capital Solutions, LLC | [email protected] | 561.316.7701

Not a good sign! Either run away or do it subject to viewing. If it's a mess ask for an appropriate price reduction or change in the terms of the deal to make it worth it. Might want to wait because it might be come a stale listing.
Originally posted by @Derek Wheeler :

Well, 1. I am currently dealing with a seller for one of my buyers that is the same way. My buyer can't even get a showing of the home without a 100% approval from the lender, but lenders don't 100% approve anything without knowing the property in and out.

I think, the listing agent has a major responsibility to her client to educate them that the best possible way to sell their home is to let people see it. Not even because people want to see it, but because it is a necessity to see a home before purchase - to the buyer, to the lender, to the buyer's agent.

Also, $100k for two $700/month doors, seems okay. We have those homes here in Dallas, but they aren't in the best parts of town. Just depends on your area, I guess. Rent in Dallas is pretty extreme even for the bad areas.

 Every property we have looked at over the last 5-6 months has been multiple bid, over asking all cash deals with the exception of one.

Had one property we bid on (all cash over asking), fall out of contract, and the real estate agent never called us back to see if we were still interested. (it ended up going back under contract for $40K more than we bid on a $100K house that couldnt qualify for conventional financing.).  

Had another property we were going to offer and saw 35 or something other offers on the property, so we passed.

We arent even getting a second chance to put in best and final offer in.

Heck we have an off market deal that I think we will get (knock on wood) where we had to lower the option period to 5 days (from the normal 7-10 days.)

I think the market is getting frothy.  last I heard in Dallas about 40-60% of purchases were all cash investors.  My sense is the end buyers are becoming few and far between, especially in the transitional neighborhoods.

@Robert DeForge Maybe I missed something. Can't you make a full price offer **contingent** on approval by your partner or some other contingency? Then if you don't like the property, nothing lost.

This is very much the norm in Nashville where I've been acquiring properties. I take it as it is and work around it.

My advice would be to make your offer contingent upon you and or your agent being able to see the inside within five days and a formal inspection within 5-10 days.

Benefit of having your agent or property manager go check out the property for you is that you can save money on the inspection if the property sucks.

Hard Pass. Epitome of lazy and sleezy. The picture you have painted of her makes me think her other job is being a lot lizard when she isnt "selling" houses. 

Hi @Robert DeForge , this is pretty normal in our Middle Tennessee market when dealing with tenant-occupied properties.  Just write your offer contingent upon your satisfaction with seeing the inside.  If they accept your offer, go take a look and negotiate from there.  If they don't accept your offer, move on, less time wasted for all involved.

I know it sounds odd from a retail buyer's perspective, but from an investor's perspective this process should make some sense.  The landlord isn't going to open the place up and disturb the tenants for every curious person.  Instead, they'll save that for the most serious buyer.  If you look inside and decide it's just more work than you want to take on, then you aren't under obligation to proceed any further.

Medium buildc21ur792381326 20140828 035859216Aaron Lovett, Lovett Realtor - Century 21 United | [email protected] | 615‑907‑0400 | http://www.LovettRealtor.com | TN Agent # 338580

This post has been removed.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you