I bought an investment property w/o viewing

I bought an investment property w/o viewing

Investor · Fort Lauderdale, FL · Member since 2019 · 124 posts · 68 votes

I bought a house without viewing it due to the owner’s not wanting anyone in during the virus until under contract.  It has a tenant as well until December.  They were very stingy and not flexible at all on asking price.  My contact stipulates that I was allowed to view the property and receive 3 months of rent proof from the current tenant.  

Upon viewing it today, I found some small issues inside.  However, the outside yard was not maintained well anymore and muddy, and there were other issues with the fence and landscaping.  I told the other agent these issues today and she said the seller will not want to negotiate now and after the inspection.  My fear is it will become an effective contract in 2 days and I would have negotiated the price differently if I was able to see these issues prior to viewing the property.  I fear that if the inspection does not include things about the yard then I will not have protection to get help for those and they could come after my deposit.  I am pushing my agent to try and negotiate tomorrow and stipulate either that we negotiate those things now, or that we amend the contract that I still have a contingency after the inspection to negotiate these other issues without them being able to decline them since they are not in the inspection.


this is my first purchase and I would be very thankful for advice on how to handle this situation before the contract becomes effective tomorrow.  I will still have 3 days from tomorrow to put down my escrow. 

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Member since 2020 · 404 posts · 235 votes
6y

You will need to provide a best estimate on the cost for repairs or however much is needed to get it up to the level you want and evaulate if your purchase price is still reasonable. Im currently in similiar story..im in escrow for a duplex with tenants and i still have not seen the interior yet at all and won't be seeing it until they move out. I do have a prior inspection report and i have a good estimate on all the repair cost prior to making an offer to be accepted. Did you pay for a formal inspection and had an inspector come out to see if there any other issues?

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  • Investor · Fort Lauderdale, FL · Member since 2019 · 124 posts · 68 votes
    6y

    I forgot to note that the seller’s agent has been a bully the whole way.  It was listed at $479k and I had comped it at $505k.  Right when she kept telling us firm price and came up she told us they relisted it at $495k.  Now she keeps telling us the seller’s will not concede an inch and has been very tough to deal with.  Although she is a nightmare, if I can get these few things taken care of it is ideal for what I am trying to do.

  • Member since 2020 · 404 posts · 235 votes
    6y

    You will need to provide a best estimate on the cost for repairs or however much is needed to get it up to the level you want and evaulate if your purchase price is still reasonable. Im currently in similiar story..im in escrow for a duplex with tenants and i still have not seen the interior yet at all and won't be seeing it until they move out. I do have a prior inspection report and i have a good estimate on all the repair cost prior to making an offer to be accepted. Did you pay for a formal inspection and had an inspector come out to see if there any other issues?

  • Rental Property Investor · Cornelius, OR · Member since 2016 · 58 posts · 26 votes
    6y

    I would be leary of buying without personally inspecting it, or your agent inspecting it. Someone on your side should look. I didn't get a look at 2 duplexes we bought 2 yr ago, been nothing but a money pit with all the little fixes here and there. Recently dumped them. I learned, go look inside, or get someone you trust to view and report back. 

  • Investor · Fort Lauderdale, FL · Member since 2019 · 124 posts · 68 votes
    6y

    @David P. and @Jim Butterfield thanks for the advice, I do have the inspection coming up, I did not wave that or anything.  However, the contract was contingent upon me viewing the property and being okay with it.  Their agent said we should bring up everything once and inspection is done in a few days, however if I don’t bring up the yard now since it was contingent on me being okay with the condition, then I am worried if it is not in the inspection then I will have no protection.  I am fine if they amend the contract to allow me to negotiate that as well after the inspection.

  • Rental Property Investor · Cornelius, OR · Member since 2016 · 58 posts · 26 votes
    6y

    You should definalty have an out after inspection. the agent is wanting you to bring up all your concerns at 1 time, not this today, and that tomorrow. Its a negotiation strategy. bring everything to the table at one time. I can understand that. As for the yard, did you not see this before the contract started? Was it just pictures you viewed of the unit at first? Typicaly having hard evidence of problems vs just your impression or thoughts is the best way for seller to take you more seriously. having that report describing issues, is more credible than just "hey you should fix this and that". 

  • Specialist · Portland, OR · Member since 2019 · 81 posts · 88 votes
    6y

    Just ask yourself which you're more afraid of.  Ending up buying the place at the current price with the issues you now know of, or not getting the place because they wont renegotiate. 

    You can still get out after the inspection, whether the yard issues come up or not so i wouldn't be too worried about that issue only - but certainly make sure you get a good inspection of the place before proceeding!  We bought a 4plex unseen years ago and not only did it become a money pit but took us almost a decade to get out of.

  • Member since 2020 · 404 posts · 235 votes
    6y

    Like poster said above, biggest thing to me is if your still getting a good deal. Factor all the worst case scenario into your price and see if your still like the numbers. Mine case, I got seller to knock down 100k off list price for 2 unit duplex. I factored since house is built in 1993 and inspection report pointed at few major issues like needing a new roof and repair some termite siding damage. 100k would be a good amount of reserves to cover anything I needed to get done. I would also look more into the tenants. Are they paying well below market or at market. If well below, there is little incentive for them to move out I'm December. So take that into account.

  • Investor · Fort Lauderdale, FL · Member since 2019 · 124 posts · 68 votes
    6y

    @Jim Butterfield the backyard was either maintained when they took the photos or they were photoshopped.  We have clear videos and pictures showing all the issues that were not initially there for us to see.

    @Bryan Danger and @David P. yes all the worst case scenarios still work out in my favor, I believe any other buyer will have similar issues with the backyard.  I just want to reach a reasonable compromise with them.  I am glad to hear of the bad stories and be prepared, I did these scenarios heading in and alter them as they come up.  My plan was to redo the backyard with nice pavers and artificial turf so this problem may actually help on my covers!


    For protection I sent over an email with photos and videos detailing the problems.  I told them I am comfortable with 2 options and was very polite.  I explained that by not bringing up the yard and pool issues now that I was legally waiving my rights to my first viewing of the property and negotiations.  I explained that there are 2 options I am comfortable with.

    1) we can renegotiate the original terms due to these new findings and then go along with the inspection.


    2) I am fine with delaying negotiations until after the inspection on everything, we just need to add an addendum that I had issues with x, y, z, and I am able to walk away if you want do not come to terms with those along with the inspection.  This seems highly reasonable and like the best path. 

  • Investor · Fort Lauderdale, FL · Member since 2019 · 124 posts · 68 votes
    6y

    Just a quick update, they are telling me to not negotiate now and just do it after the inspection.  I am just nervous that that would mean I am waiving my right on some of the issues I have if they don’t get mentioned in the inspection.  Couldn’t they claim they fixed all inspection stuff and fulfilled their end of it and I don’t have a guarantee to negotiate the other things?  Their agent is tough and wants anything that seems to help her do less work.  She is hard to even get a hold of on the phone.  

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