Multi-family offers before viewing the property is this normal???

Question

I'm shopping for a duplex/triplex in my area, and everyone that is occupied they are asking that I put in an offer and they have to accept to even view the property. I get that it's a bit of a inconvenience for the tenants but is this normal? Sight unseen I'm going to low ball like crazy, but I don't feel like having something excepted have to pay some type of earnest money and walk into a complete mess.

Normal??

Alex Rodriguez · Answer

Everyone here has made great points. Here in Sacramento it's a sellers market. I just bought a 4plex, put in the asking price offer without looking inside the units. 4plex was 30k cheaper than any other 4plex around figured it was a better deal. Agent basically didn't want to disturb tenants until absolutely necessary. Granted I did have inspection contingencies. Once inside one of the units will need full remodel, I then negotiated 13k price reduction with no issues. Don't worry about making an offer site unseen, just make sure to have your contingencies in place and you can always back out if negotiations don't work out.

Ellis San Jose · Answer

Do what you feel is right. If they reject your low initial offer, raise the offer with contingencies .  Remember the key is to open the door to a negotiation.  People freak out all the time about putting in an offer sight unseen. If you structure the offer correctly, it's no big deal.

Brett Danehey · Answer

Ellis San Jose

Question, I don't know if I'd say it's much of a sellers market, as two of the three have been on the market over 200 days. My instincts are to go very low on my offer, but I've got my pre-approval from my lender that covers the properties with plenty of room.

Mike McCarthy · Answer

@Brett Danehey agreed with @Ellis San Jose. Sellers with tenants don’t want to have a stream of curious buyers coming through. By making an offer, you’re confirming that you’re interested enough to go through the hassle and have the finances to back it up.

The last one I viewed like this, there was a contingency along the lines of ‘offer is based on photos and information available. Buyer has 3 days after walkthrough to update or rescind offer.’

You might be able to find more pictures and such non Zillow, Redfin, etc from when the apartments were rented.

The idea is if it’s exactly what you expect when you walk in, what would you offer? If it’s worse, things need repair, etc, then you drop your price. I wouldn’t low-ball just because it’s sight-unseen since you do have a contingency.

Ronil Dwarka · Answer

April/May/half of June/ - was a confused mkt with about 38% in unit drop sales (median price holding). Suddenly after July 4, it has become a seller's market with yes a few minor exceptions in few zip codes. With lenders softening guidelines a little bit, everyone is up to grab that 2.99% or investor 4%. One builder in Sac will start taking offers on their Aug release. Anyways, get a few sips of that grey goose vodka, close your eyes, and send that offer, who knows luck might be on your side. Cheers.

Steve Morris · Answer

"I get that it's a bit of a inconvenience for the tenants but is this normal?"

In OR/WA, normal, especially if there are no vacancies.  If they have a vacancy, I can usually get a look-see.

From the seller's perspective how do I even know you're serious if you don't want to write an offer?/LOI?  If your offer is good you get time for 100% inspection anyways.  What are you looking for you couldn't ask about?

Before I show you a unit do I get to look at your proof of funds?  If you're wholesaling, you may not even pay any money or close on the deal regardless of your representations.  Which is why it helps any offer if you can throw in a "resume".

Otherwise, I'll just get the tenants in a turmoil about selling and have to post notice and you may not even show up.

I'm a broker, so I only get paid if I close, so I'm not discouraging deals, but be realistic and consider there's a SELLER and BUYER involved in any deal.

DJ Dawson · Answer

The offer doesnt necessarily lock you in as @Alex Rodriguez mentioned, its  basically a foot in the door to negotiate, it lets the selling side know you are serious and looking to start a dialouge

Brett Danehey · Answer

I appreciate the tips everyone. This makes me have less confidence in my Agent...haha...

Thanks

Ellis San Jose · Answer

In a strong sellers market this is typical. Usually you make an offer contingent upon a few conditions & then make price and term adjustments as part of the negotiation.  The listing broker is screening for a legitimate buyer for his client before he jumps thru any hoops.

Multi-family offers before viewing the property is this normal???

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