Can't see the property before an accepted offer

14 Replies

I have been trying to negotiate a deal for a duplex. Both sides are currently rented out.  I was told by the realtor for the seller the following:

"Inside showings will only be allowed with an accepted offer using the contingency of physical viewing of the property within 3 days of contract acceptance." 

Does this seem legit? Seems odd that I can't see the inside of the property until they have an accepted offer. They are offering lots lots of pics, getting an extensive list of the upgrades/repairs, copies of the leases, proof of deposits, ect... If they are getting this information together that says to me they are serious to sell and are legit. However, I don't like making offers on properties that I have not seen the inside of. The reasoning to not allowing to see the inside until an offer is accepted is to not disturb the current tenants and make them unhappy. Thoughts on situation or how to proceed? Has anyone else had a similar situation. 

I'd be pretty uncomfortable too, but it's not a deal breaker.  I would just make sure you get your walk through objections and inspections objections dates verified and make sure you get over asap.

Sure. I never look at the property until I have an accepted offer. Why waste my time? The offer is based on the numbers. It gets accepted, I go look during the inspection period, I like it and move forward, or I don't like it (a problem turned up during the inspection) and turn it down...and get my EMD money back.

The only thing I'd be concerned over, is you're only getting 3 days for inspection.  I get a minimum of 5, and up to 10.

I usually steer clear of deals like this. There's always something hidden that the seller/realtor wants to avoid showing you until they know you're serious. Approach with caution.

I've seen some wholesalers throw out deals with similar requirements and that's usually a red flag for me to stay away from such deals. Often times, they are trying to wholesale another wholesaler's deal. Just my two cents.

Best of luck with this property. 

I wouldn't be concerned... Usually they don't want hoards of people disrupting their tenants. Think about it. If every interested person walked through prior to making and accepting an offer its a waste of everyone's time including tenants. Just take a good look and you will be fine.

Originally posted by @Kenneth Sok :

I usually steer clear of deals like this. There's always something hidden that the seller/realtor wants to avoid showing you until they know you're serious. Approach with caution.

I've seen some wholesalers throw out deals with similar requirements and that's usually a red flag for me to stay away from such deals. Often times, they are trying to wholesale another wholesaler's deal. Just my two cents.

Best of luck with this property. 

 Not there isn't.  This is pretty typical.  The landlord doesn't a bunch of investors disrupting the tenants.  This isn't a problem.

Not a big deal. Just prepare to take your home inspector when you go for the showing.

I put a bid on a duplex just this weekend with the exact same stipulation. Assuming they accept my offer, I'll go view it this week.  Just make sure you're covered in the contract if you decide you need to walk away after that first viewing.  Good luck!

It's not that uncommon on investment properties for exactly the reason the agent stated (i.e. to not disturb the current tenants). Basically they are just trying to avoid having a bunch of looky-loos going thru the property and whittle it down to the few who are serious enough to make an offer. 

I've bid on several houses this way (sight unseen). In fact, if they have a bunch of pics available like in your situation, I don't really need to see the inside before making an offer even if they do allow it. It's nice, but not really necessary. 

@Jim Wilcox This is far from odd.  We're in the @Joe Villeneuve camp.  It's not a good use of our time to go look @ every property we make offers on.  We have a team of folks at the ready once an offer's accepted to complete the due diligence on the property.  

We won't allow viewings of occupied properties we sell unless we have a vacant unit, hold an open house for all buyers to review the property or we have an accepted offer & allow the them to use the inspection period to complete their due diligence.  

Thx BP community. I do see the reasoning behind it. Never purchased a property with tenants in it before so just wasn't sure of the procedure. @Joe Villeneuve thx for the help. I thought 3 days was a little short and I will see if they would up extend the inspection period a few more days.

Originally posted by @Jim Wilcox :

Thx BP community. I do see the reasoning behind it. Never purchased a property with tenants in it before so just wasn't sure of the procedure. @Joe Villeneuve thx for the help. I thought 3 days was a little short and I will see if they would up extend the inspection period a few more days.

Fannie M is usually 10 days, HUD will give you 7-9, banks will at least give you 7 in most cases. For a private seller I wouldn't even consider agreeing to any inspection period less than 10 days.

@Jim Wilcox

  this is SOP for investment properties that are tenanted. 

The tenant is the important factor here ... and seller don't want to spook a tenant or upset them. with constant showings..  And wasting time with  tire kickers.

I don't know why anyone would be worried or think something was amiss.. you negotiate the price you get pre qualified and you do the inspection last.. you don't like it you walk end of discussion. 

Originally posted by @Joe Villeneuve :
Originally posted by @Jim Wilcox:

Thx BP community. I do see the reasoning behind it. Never purchased a property with tenants in it before so just wasn't sure of the procedure. @Joe Villeneuve thx for the help. I thought 3 days was a little short and I will see if they would up extend the inspection period a few more days.

Fannie M is usually 10 days, HUD will give you 7-9, banks will at least give you 7 in most cases. For a private seller I wouldn't even consider agreeing to any inspection period less than 10 days.

HUD has a 15 day inspection period for investor purchases however you are not going to get your earnest money back even if the results are unacceptable

You can walk through during the 48 hours that is allowed to turn in the contract and just not turn in the contract without penalty

@Jim Wilcox

 Offer first, then inside -- that's pretty standard here in L.A., too. 

Also, since you're working with a really short contingency period, you might want to ask a handyman, contractor, plumber, or otherwise someone who knows how to fix things and knows how much things cost, to come along during the first viewing.

It's always good to have an extra set of eyes. You'll also have a better idea of whether you want to move forward before the formal inspections, which costs $$. 

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