Thoughts on No-Show Offers

[Laura P.]

I am trying to buy a multi family home or duplex around Salt Lake City and I am finding that many of the properties posted for sale don’t allow a showing until an offer has been made. Is this common? I can’t seem to understand how a motivated seller is more concerned with bothering their tenants rather than making money on their sale.

Thank you!

[Matt Castle]

How do you know they're motivated? Unless they put it in the MLS description or agent has their permission to verbally communicate it potential buyers, they're not motivated.

Showings only after offers are accepted is a common practice in a seller's market. I see it once a week, where it used to be once a month. 

Think of it from the seller's point of view: why waste their time, the realtor's time, the tenant's time, etc., on 10+ showings a week. At the very minimum, most investors with tenants in place should require written proof of funds for all cash offers or proof of loan pre-qualification with proof of adequate down payment. 

This way, you don't unnecessarily disturb tenants by weeding out the tire-kickers and looky-loos as much as possible and find the serious buyers who are ready, willing & able to buy the property. 

I'm not trying to be harsh, but the reality is that showings disturb tenant's lives and courteous landlords do that as infrequently as possible.  

But most importantly to your scenario, think how it benefits you -- the buyer! If your competition is weeded out by 90%, the fewer offers you have to compete against!!!!!