What to do if agent won’t show the house?

Question

Hi - I have two rentals and am taking the leap in buying a couple more that will be long-distance. I spent a few days driving by potentials, researched them, then narrowed my list to 7 properties. I hadn’t looked at the listing agents for them while researching. It turns out the same agent represents 6 of them. He won’t show any of them because there are tenants. I asked for pictures. He won’t provide them because the “tenants are messy”. I have dealt with messy tenants - there’s a difference between clutter and damage.

Personally, I’m not prepared to buy something without a general idea of the interior condition and I’m interested in knowing why someone would. Is this something many investors are okay with?

Caleb Heimsoth · Answer

@Janet Runes this is really common. It it’s tenant occupied; you won’t see the inside until after you submit an offer. That’s just how it goes. Why as a seller would I want to waste my and my tenants time for every buyer who shows any sort of interest? Most buyers are washy anyways. Make an offer. See if afterwards

Russell Brazil · Answer

Pretty common on tenant occupied properties to only be able to view them at a home inspection.

John Teachout · Answer

Well, more for the other guy then. I just don't operate that way. When we write an offer, if it's accepted it's going to close. We do our own inspections and usually we do that all in one visit. Our offers are written as all cash, no contingencies, no due diligence period. We value our realtor's time and don't want to have them write offers that have loose ends.

James Wise · Answer

Fairly common not to do showings. Doing over $125M in rental property sales I can tell you that it's a complete waste of time for the seller and seller's agent to show occupied properties to buyers. Mostly anyone who needs to do a personal tour of an occupied rental isn't going to be one ready to close the deal. That said they should be smart and provide as many photos and or video as possible up front. It's all about providing investors with the most complete amount of information as possible so that they can make an informed decision. Why they are not doing that I do not know. If you aren't comfortable moving forward at this time I'd say just move on. You aren't going to change their mind as someone will eventually buy it so long as it's priced right.

John Teachout · Answer

I've run into properties multiple times that the seller won't show until the "due diligence" period or after accepted offer. Even though I may be interested in the property otherwise, I'm not under those conditions so I just move on. I won't put an offer in on a property I haven't inspected. We never utilize a due diligence period. When we put in an offer, we've already inspected it enough to put in an as is, no contingency offer. So unable to view? Not happening with me.

Joe Splitrock · Answer

I had a tenant give notice because he got sick of the showings. People didn't take shoes off, left closet doors open, and left doors unlocked. Lots of "investors" who were just tire kickers. Tenants don't always keep properties clean and in showing condition. Then there is the difficulty of coordinating showings. What people forget is that tenants don't get any benefit from the disruption of selling a property. They may appear uncooperative, but really they are just annoyed and rightfully so.One option I have seen is some sellers only show vacant units, so you can look at one and then with an offer you can inspect them all. The easy solution here is run the numbers and place an offer contingent on inspection.

Charlie MacPherson · Answer

@Janet Runes I'd ask to see the basement and any unoccupied units. Basements tell you most of what you need to know anyway. You can look at the utilities - hopefully all are separate. If not, that's a real detriment.Is there a sump pump? How does it smell? Damp? Musty? Is there visible mold? Those point to the need for mold remediation, moisture and/or water control.Is there knob & tube wiring? Fuses instead of breakers? You'll most likely have to upgrade those in order to get insurance.How to the support columns look? In older homes, cedar posts were used because they didn't shrink as much as other woods - but they do shrink over time. In homes built before about 1930, it's not uncommon for shrinking posts to cause un-level floors above. If they're adjustable lally columns, they'll fail FHA and VA appraisal and possibly others. The reason is that they're hollow, unlike permanent ones which are cement-filled. Hollow columns will collapse sooner in a house fire.Foundation - older homes will have fieldstone. If the pointing isn't maintained, there will be a superhighway for rodents and water. Or does a poured foundation have horizontal cracks? Home inspectors tell me that's a much more serious problem than those that are mostly vertical, which indicate minor settling.Sill plates and joists - I look for termite / powder post beetle damage, etc. While you're at it, look at the floor for rodent droppings.If I were looking at a fully occupied MFR and could only see the basement, I'd definitely make the trip.

Janet Runes · Answer

I understand not showing it while occupied. I don’t understand the seller not having a thorough set of photos or video available so that, as a buyer, I don’t waste the seller’s time by putting in an offer just to see inside.

Aaron Hunt · Answer

You’d have to be living in the boondocks for agents to show occupied properties all the time (or at all). That would be a desperation move on their part.Doesn’t really happen anywhere near major cities.

Janet Runes · Answer

Thanks, everyone. What I’m learning here is investors have their own strategies and boundaries. I really appreciate hearing yours. Unfortunately, I did not plan this trip well and will have to leave the properties behind (in Cincinnati no less!). It never occurred to me that I wouldn’t see interiors. I don’t know why an agent would want to waste their time with fake-ish offers and due diligence periods. Moving along for now with more knowledge and forming a better plan. Thanks tons!