Two weeks after house burned is it ethical to make an offer?

Buying & Selling Real Estate
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Two weeks after house burned is it ethical to make an offer?

Eric Teran
Architect · Alexandria, VA · Member since 2016 · 317 posts · 371 votes

My wife and I were walking in the neighborhood and we noticed a home boarded up. Perfect opportunity to make an offer. However, we soon discovered this was the home that was burned down about two weeks ago. The interior is completely ruined by the fire and water. The exterior looks fine but who knows. 

My question is how ethical is it to contact the homeowner if they are willing to sell the home?

Is two weeks enough time? Is one day enough?

Do I contact them and say, "I'm sorry for your situation. I'm glad you are doing okay. If you are looking for options for your home I would be happy to make an offer." They get the money and don't have to deal with the stress of building a new home or fighting for insurance money. Maybe this offer is an acceptable solution for them. I understand that it also depends on how the situation is approached. We don't want to be an a**hole developer.

With so many natural disasters as the hurricanes and California fires, offers can be made on those properties as well. Is that a different situation than an isolated home that is damaged? 

Do these situations fall within the same lines of when a relative becomes the owner of the property due to a death in the family? Is there a too soon?

I ask the BP community, when is it ethically acceptable to contact/make an offer to a homeowner when they have lost their property due to devastating circumstances? 

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Mike H.
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
8y

I'm always of the opinion that in business you want to get there first. The reality is that you are going to get a response either way. And I would suggest that its 50/50 what you get. They will either be tickled pink you want to buy the property OR they will think you're an ambulance chaser and won't want anything to do with you.

But they're going to think that no matter when you put in your interest. So contact them early and tell them you buy those types of properties and if its something that makes sense for them because they're taking their money and building somewhere else, you'd be very interested in speaking with them.

To me, its no different than anything else. You're either going to be a solution for them and they'll be grateful you reached out. Or they may have ever intention of building there again and you'll be a nuisance. No way we can ever know which is which so you just do the numbers game and contact them and hope its the positive one. :-)

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  • Mike H.
    Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
    8y

    I'm always of the opinion that in business you want to get there first. The reality is that you are going to get a response either way. And I would suggest that its 50/50 what you get. They will either be tickled pink you want to buy the property OR they will think you're an ambulance chaser and won't want anything to do with you.

    But they're going to think that no matter when you put in your interest. So contact them early and tell them you buy those types of properties and if its something that makes sense for them because they're taking their money and building somewhere else, you'd be very interested in speaking with them.

    To me, its no different than anything else. You're either going to be a solution for them and they'll be grateful you reached out. Or they may have ever intention of building there again and you'll be a nuisance. No way we can ever know which is which so you just do the numbers game and contact them and hope its the positive one. :-)

    2Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    8y

    First to the trough usually gets fed. I would not be concerned with their response and would move asap if you are interested. Worse case they say no and keep you in mind.

    The way the business world operates is if you hesitate out of some form of ethical concern you lose out 9 out of 10 times to somone that doesn't care.

    1Reply
  • Eric Teran
    OP
    Architect · Alexandria, VA · Member since 2016 · 317 posts · 371 votes
    8y

    @Mike H. and @Thomas S. thanks for providing your input. I know what I can offer to make my ROI work so I'll go contact the owners and see if anything comes out of it.

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  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    8y

    The only time I think it is too early to make the offer is if you're pushing the fireman out of the way who is trying to put the fire out. Well, maybe I'd do that. 

    It might be too early if you're the one lighting the fire. Yeah, then I think that would be too early.

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  • Brandon Battle
    Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
    8y
    They’re probably still dealing with the insurance company for a settlement and figuring out what happens next.Now would be a good time to offer your condolences and ask them to contact you if they decide to sell the property as is and move on ASAP.
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  • Alan Pederson
    Investor · Kennedale, TX · Member since 2016 · 219 posts · 349 votes
    8y

    My next door neighbors (an older couple) lived in that house for over 30 years. He ended up having to put his wife in a nursing home but continued to live in the house by himself. About a year later, he passed away and his son ended up with the house. We offered our condolences on his loss and my wife went up to see his wife a few times to take her flowers from our garden. We made it clear that we were in the market to buy more homes and we would love to buy this one if we could. The son said he was going to rent it out for at least a year and then decide what to do about it. During that year, we tried to buy a few homes but nothing worked out. We were friends with the new tenants and they told us the son that now owned the house had talked to them about buying it from him. They weren't interested but we called him up and made an offer. We got the house before it went on the market and  my agent said she couldn't believe the deal we got on it. So you just never know what response you're going to get from somebody.

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