Hello fellow BP members. I've been lurking the forums studying as much as I could since January 2019. Today I came across what appears to be a solid deal on the MLS. The property is 2+ hours away and wanted to put in my first offer ever with my realtor before the house gets shown. The response I got from the realtor was that it's not good to offer without seeing the place first. I recall hearing on one of the podcasts where the guest said that one can make the offer and back out if one finds something that breaks the deal. The idea of beating the crowd while maintaining the safety of being able to perform due diligence seem like a groundbreaking strategy. But now the realtor told me that the seller can force me to sign a sight unseen document/contract makes me want to rethink this strategy. So first off, can a seller do that legally? I've never came across this issue at least on BP so any help would be tremendous.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y
You'll hear a lot of what you think is “ground breaking strategy” on youtube and guru crap which doesn’t work, simply because you are new and don’t know any better.
Would you as a seller take your property off the market for weeks for someone who had never even seen it? You’d be foolish to do so.
Specialist · SF Bay Area · Member since 2019 · 20 posts · 6 votes
7y
They can't force you to buy their property. They can reject your offer if you have inspection or appraisal contingencies. More so if you're competing against offers without contingencies.
If you don't know what you're looking at, seeing the property won't change anything. Although some agents won't put an offer in if they haven't seen the property.
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
7y
If I'm the seller I wouldn't accept a sight unseen offer... they most likely would know you plan to back out if/when you see something you don't like. In NY we have binders before going under contract. Lots of people will put in offers, get them accepted. From acceptance to contract is usually a period of time (says) and the buyer wouldn't use that time to perform their DD. Then when the contract comes, if their numbers don't work they back out or try and get the deal cheaper. I don't do this, others do.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y
You'll hear a lot of what you think is “ground breaking strategy” on youtube and guru crap which doesn’t work, simply because you are new and don’t know any better.
Would you as a seller take your property off the market for weeks for someone who had never even seen it? You’d be foolish to do so.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
7y
I have bought 2 properties site unseen that I found on the MLS. Both of them had been on the MLS for quite a while and one listing actually had expire the week before I made the offer. On that one I had looked the outside, but could not see the inside as the keys went missing from the box and I had to leave --2000 miles away--extra keys were out of state. The realtor took walking photos throughout the property going into close ups on things as I asked her to once keys were mailed to her. The other had been listed for several years and had dropped in price from about $50k to $23k, with the POA fees they just needed it sold and had no interest over the last 'season' at the lower price. There was no loss of exposure in taking a contract from me if I did not preform on either property.
No one selling a house with a new listing wants to risk taking a house off market on a sale that likely will not go through. Two hours away, go and see it, or wait a few months and if its still on market make an offer site unseen. Don't waste the sellers time on a new listing. They would be stupid to accept that offer. When you cancel, they then have a house that will be considered defective rather than hot in many minds, just because of your contract.
The seller can not 'make' you sign anything. But you also can not 'make' them accept you offer. If you want to tie their house up in a site unseen contract you will need to give them some reason to believe you are not a flake. Maybe a large non-refundable deposit or some paper that says you give up certain rights, like inspection, and your offer is in cash.
Hello fellow BP members. I've been lurking the forums studying as much as I could since January 2019. Today I came across what appears to be a solid deal on the MLS. The property is 2+ hours away and wanted to put in my first offer ever with my realtor before the house gets shown. The response I got from the realtor was that it's not good to offer without seeing the place first. I recall hearing on one of the podcasts where the guest said that one can make the offer and back out if one finds something that breaks the deal. The idea of beating the crowd while maintaining the safety of being able to perform due diligence seem like a groundbreaking strategy. But now the realtor told me that the seller can force me to sign a sight unseen document/contract makes me want to rethink this strategy. So first off, can a seller do that legally? I've never came across this issue at least on BP so any help would be tremendous.
The seller can choose whatever terms they are willing to accept just like you can choose whatever terms you are willing to accept. Neither of you can force the other to accept your terms. So if you are willing to take their terms then you can do a deal just like if they are willing to take yours.
As for your specific question about a sight unseen document I am not exactly sure what you are trying to say but I am guessing that the seller is saying he wants you to sign an As-Is contract with no contingencies. Reason they are doing this is so you don't sign a worthless contract, take their property off the market then have the ability to arbitrarily cancel it when you do see it. Makes sense. They are well within their rights to do this. You are also well within your rights to be unwilling to do this and simply walk away from the deal.
@Tam Nguyen The weekend is almost here. Drive down and look at the place. If you have a family, take them for a drive. As others said, the seller is taking a risk accepting your offer if you haven't seen the place. Their best move would be to accept other offers until all your conditions are removed.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
James is right on. I do buy properties with OOS investors frequently who have not steped foot into the property, sometimes until inspection, sometimes until after closing. That does not mean "sight unseen" - because we use a video call to look at the property together.
It works surprisingly well, we look at the property overall and we can examine details very closley. Takes about an hour. Also important, I only want to do this with educated clients, who I have spent time with and we have seen similar properties together in person. That is the foundation you we both need to feel confident about a remote walk through.
However, for 2 hours I'd just recommend you drive, especially if this is your first one and or your agent is not an experienced rehabber.
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
7y
@Tam Nguyen - I'm in the same boat as most people here. Sight unseen offers never seem to pan out....like, ever. I won't write them and I won't accept them unless they're willing to put in a significant deposit down up front
Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
7y
To answer your question, the seller can make just about any terms they want to make a requirement, including special conditions for any buyer who hasn't seen the home, as long as they are applying those conditions to all buyers evenly (i.e., don't discriminate).
To the broader point: go see the house. I won't write a sight unseen offer for my clients unless it is non-contingent. If the buyer won't take the time to go look at the house first then why should the agent take the time to write an offer up if there is a high likelihood that the buyer will back out before closing?
Rental Property Investor · IN · Member since 2019 · 34 posts · 39 votes
7y
I'm confused? Different states have different laws about purchasing a property sight unseen. Whatever the laws in your state, you should be able to make an offer contingent on just about anything under the sun. Getting a property under contract without seeing the inside first is pretty standard for me. Why take up everyone's time including the tenant's without a signed contract? I wonder if this is a residential agent and not a commercial/investment one. If a person has to drive around the world looking at property before they can make an offer, that person won't be buying much. If this is the listing agent, you are stuck with his/her rules. If this is your agent, get a new one pronto.
Thanks for everyone's time and input. Really helped me see this issue from the seller's point of view. From the responses I can see that making an offer sight unseen is neither ideal for the seller nor is it something that all buyer's agent will avoid so there is definitely not just one school of thought here.