No viewing until under contract?

Question

Was made aware of a house that just came on the market today. Existing tenant but no viewing until under contract. This would be my first property and that just sounds too risky to me. Are there documents or info I can ask for that could make this a more solid deal or should I just walk away?

Bill B. · Answer

I listed a property the same way last month. It took 7 days instead of maybe 3 or 4 to get a buyer? Long term tenant was moving out in a couple weeks and was pretty adamant about not being open to showings. Could we have forced it? Or course. Could the place have been a mess and shown terribly costing us thousands? Could a showing be cancelled because of a sick baby or some other “emergency”? Obviously.

Why bother? So tire kickers can walk the property and disturb tenant with no skin in the game? I can’t remember the last time I walked a property before putting in an offer. You know the age, size, location, and the represented condition. Get it under contract, have the inspector and appraiser walk it, and close.

Unless you’re paying cash with zero contingencies what do you gain by walking it? Put in a 3 day inspection period and you’re golden. Or wait until it’s empty. Either it will already be sold and you’ll know better next time. Or it will be empty and you’ll have a chance to bargain, if all the other buyers don’t come out of the woodwork. In fact. Now that I think about it. It’s probably good for you as the buyer it’s set up this way. Keep all the new investors or people looking for a reason not to start form bidding you up.

Dave Craig · Answer

Thanks for all of the helpful replies. Yes, the reason for no viewing is self-explanatory. Since this would be my first deal, what I was really asking was 1. Should I even be considering this as my first deal ever? and 2. If I should consider it, how should I go about it and what documentation can I ask for to help with the decision?@Ren Lok, if you want to go ahead and snatch that up so it's no longer a consideration for me, that might be helpful too. :D

Bob Stevens · Answer

Low ball offer, contingent on viewing,

Nicholas L. · Answer

"no risk" under contract??  maybe low risk.  but not no risk.  that's what contracts are for.  some risk for some reward.

i can't answer without more background.

what are your goals?  is this single or multi?  would you occupy?  would you keep the tenant?  are you working with an agent?  do you have your core 4 lined up?

i tend to agree with @Eliott Elias that it's not worth it UNLESS you answer those questions and for some reason it's a strong deal

more background please

Jay Hinrichs · Answer

just make your offer subject to inspections happens all the time with investment property. put the shoe on the other foot what if you lived there.. you want every tire kicker to walk through. takes a lot of time to set up appointments with tenants and those are going to be your tenants you dont want to unduly roust them.. they probably work etc etc.  so you get into contract and you get in the property the same day your home inspector is going in thats all you need to do.. unless your not having a home inspection which is something I would not recommend unless you know for sure your getting a deal way under market.

Also this assumes U have done a driveby and like the street and the look of the exterior.

Ren Lok · Answer

I think we may be looking at the same house Dave :D

Theresa Harris · Answer

I agree with others, put a viewing contingency in your offer.  You can also drive by to see what the outside looks like.

Caleb Brown · Answer

That is common with tenanted properties. I would get sellers disclosure and make sure the offer is contingent on viewing/inspections. You can also have EMD delivered after you have viewed. The owners just don't want to disturb the tenants

John Chong · Answer

It depends on if there's an option period, escrow amount, and the DD you ran on the property. If there's an option period and the numbers make sense I would make an offer on it.

Most likely there's multiple offers and the sellers don't want to disturb the tenants again since the first offer fell through.

Account Closed · Answer

I agree with the first response, there is no risk to get it under contract and the deposit locks in after the inspection.

You may want to walk through and then line up the inspection a week later incase you decide it isn't going to work. That way you might save the inspection cost.

On FSBO deals or deals I'm looking to close fast with cash I just put in the contract that my company will hold the deposit.

Always give yourself a few outs in the contract if you can but it depends on the situation and property.

No viewing until under contract?

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