HOUSES SOLD BEFORE SHOWINGS??

[Stephen Foltin]

Hello BiggerPocket Friends,

I am in Charlotte NC and have been looking for a house for over a year now. I am in the $300-$475 range and have had the worst luck when it comes to trying to secure a house. I have been outbid four times and every time I was the second best offer.

The biggest issue I have had is I will get email of new house on the market from the MLS, it will have been active not even 1 hour, and when I reach out to my agent there has always been some excuse to why we cannot book a showing(they arnt doing showings until next week because carpet is being cleaned, etc.) Then within the same day the house ends up "under contract" and my agent claims someone bought it site unseen.

This has happened over 20 times and I am having a very difficult time believing that all of these houses are going “site unseen”. Has anyone else experienced this or can shed light on what these site unseen offers look like?

[Logan Hartle]

Hey Stephen. I’m sorry you’re experiencing this. As both a broker and a home buyer I’m experiencing the same thing and it can be very aggravating. Inventory is incredibly low compared to demand.

Many houses that are “coming soon-no showings” are getting multiple site unseen above asking price offers before they hit market.  Many houses that do not have a “coming soon” period but simply go to market are getting multiple offers same day above asking.

We were fortunate recently to get our personal home under contract after a deal fell through and we had the second best offer. Be prepared for this as it can happen.

Work with your agent to get feedback from the listing agents to see if they will share why you were second place and not first. Was it not enough due diligence $, too long of a closing period, or simply an offer too low.

You could ask your agent about an escalation clause also. If unfamiliar, essentially you make an offer at say $350k but include an escalation clause that says you will beat any other offer by “x” amount up to $375k. (Random numbers for illustration) 

I hope this helps and sorry you’re experiencing this. I can promise you one thing...you are not alone in your frustrations.

[Kristin Kiddy]

I feel for you, but it happens all the time here.  Then I see the property back on the market a few days later when the buyers decide they don't really want the property (They finally get in and tour it during their inspection period).  

[Cole Simpson]

Its going unseen that is the market.  Write up an offer that is contingent on seeing it. 

[Bruce Lynn]

It is frustrating.  I can't remember where I saw it, but saw some stats in the last year that something like 1/3 of the purchases in DFW area were bought unseen, and 25% for cash.   Typically that can be investors, but I've also had people from out of state do it, so they lock up the house before they come to approve it.  That way they don't waste a plane ticket, only to get here and find the house under contract.

It's a weird concept, but plenty of people are willing to do it.

If your market is that hot and your contracts allow you a way to back out...that might be your option.  You see a nice house, call your agent, have them right it up, sign it online, then go drive the neighborhood.  If you don't like the neighborhood or house on the outside, cancel the offer before the seller signs.   If all looks good, get inside as fast as you can.  Then probably need to allow you reasonable access to the house, if you have a contract in place.

Good luck, keep after it, you'll get a good one....better than any others you've seen.

[Marian Huish]

All good advice here-  This is happening across the country @Stephen Foltin.  You've got to learn to swim with the sharks and your agent needs to better prepare you to do so!  How about the poor first-time homebuyer trying to compete?  What's happening in the RE market is really dividing the "have's and have-nots".  Better to be in the position you're in!  Best of luck-

[Stephen Foltin]

Thank you all for the advice. Has anyone heard of or have experience with putting in some kind of offer where as soon as I see a house we like come up for sale, have our agent put in offer we think we would out in if we saw the house, and just make it contingent on seeing the house?

for example, $350k house comes up, we offer $370k, $100 Due diligence which goes up to $5,000 after we view the house and commit to offer. So basically saying, we offer $20k over asking, $5k DD but if we view house and don’t want to commit we only lose $100, but if everything goes as planned the $5k kicks in. Basically the seller gets what they want and don’t have to risk much because we will view house within 48 hours. 

[Logan Hartle]

Typically Due Diligence is due within 24 hours. Of course, you could always make the request and see. Any time you are changing contract terms away from the NCREC standard contract I would have your attorney write it up to be sure your agent isn’t “writing contract language”. 

As long as the attorney drafts it and you both accept it I don’t see why not.