No interior tour until under contract?

Question

James Wise · Answer

Yes very common. I do this with every single tenant occupied property I sell. With the amount of tire kickers & looky loos out there the only agents who are allowing showings at tenant occupied properties are agents who don't normally work the in the rental space. If you get a occupied property that is listed by an agent who's normal business is selling homes to owner occupants they will likely proceed with their normal operating procedure of doing showings as that is what they are used to. It's highly inefficient & doesn't work out very well. Selling rental properties is a very specialized part of this business. They are nowhere near the same animal as selling to owner occupants.

Thomas S. · Answer

All you do is submit your offer with all the standard escape clauses. Once you see the place, complete your DD, receive all info from seller including esstopal letters you will then possibly need to renegotiate the price or walk away.

Without a pre viewing your offer is nothing more than your introduction to negotiate.

Dan Maciejewski · Answer

It might depend on the market or the owner or the current tenants.  They do need to know that you are a serious, qualified buyer that is willing to buy this property at a price that the seller is willing to sell at -- that could be the reason.  Generally this request should be at the seller's behest and not the agent's

Jeff Kehl · Answer

@KC T. I would agree with @James Wise. This is a very common process especially in the market we're in. I wouldn't sell any tenant occupied property any other way. Why let a lot of people disrupt the tenant if they're not actually a serious buyer.

When I buy at foreclosure auction I never see the interior before I bid on the property so I just assume it needs everything done to it and adjust my bid accordingly.

Mary M. · Answer

Depending on how hot the market is, this can be standard. Also, if the market is hot, rebidding your offer is frowned on and will get you on the "lets not do business with them again" list.

Submit your offer based on the numbers.  Offer what you feel is your highest and best if it is a hot market. Understand you may not get to rebid.

Theo Hicks · Answer

I've only seen this on smaller MF (4 units or less). But usually they let you see a few units before contract and all of the units after contract.

It depends on the condition of the interiors, which may be indicative of the condition of the exteriors. If the interiors will require a lot of work, that isn't a good sign, because it will be impossible to set estimated renovations costs. Unless it was in an area I knew very well and the exteriors were well maintained, I would immediately pass.

Kevin Keithley · Answer

I live by 'never offer someone something you wouldn't accept yourself.'

I'd ask them how you are to justify an offer without knowing the condition?

Ask if they intend to reinvest their proceeds in real estate and would accept the same condition in a property they're contemplating to purchase.

Bottoml line: this Seller does NOT appear to be motivated and that would have me pass from the get-go.

Sam Shueh · Answer

If you are going to renovate the inside condition matters less.  In our area this is a $100K investment for a $1M home. However, if the ARV is a mere 200K I will be careful not to release inspection contingency.

Ronald Rohde · Answer

I would factor in a discount for worst possible scenario of interior condition. Submit offer.

Damon Pendleton · Answer

I wouldn't say it's normal, but it's not unheard of. There could be a host of reasons as to why. When I get those request I let my agent know to tell them I'm a serious buyer that will close IF I like the property along with POF. Otherwise, I don't care for the tactic so I tell them they can keep it and move to the next one.

No interior tour until under contract?

Most Popular Reply