No walk through until contract is executed?

[Robby Sanchez]

I have a deal I'm interested in and would like to know more about it but the broker specifically says "there can be no showings until a contract is executed" what exactly does that mean? I understand I have to submit an offer before I can see the property but How am I supposed to come up with an accurate purchase price if I don't even know what the insides of the units/amenities look like? Do I just submit an offer based on the information/pictures provided and then retrade if there's things that come up during the due diligence period after I have already submitted the offer? 

thanks everyone! 

[Steve K.]

Surprised by the comments from others who think this is weird, because it's not. The seller just only wants to deal with serious, qualified buyers. It's perhaps not as common for single family, so maybe that's the reason for some of the above comments and confusion, but offering subject to inspection is very common for MF (and not that uncommon either even for SF when there is a tenant involved). 

No experienced multifamily broker representing an occupied building is going to let every tire-kicker who wants a showing just waltz through the occupied units with their FHA pre-approval letter only to say "No thanks". No one is going to coordinate with a bunch of different tenants and work around all of their individual schedules 10-20 times for every random Looky-Lou. Not happening. In my experience it's not common at all for MF to be "go and show" unless there is a vacant unit. Sometimes we'll schedule a 3-4 hour window for one day when one or a few of the units will be available to see. But many times the only opportunity the buyer has to see inside of each unit in an occupied building is during inspection. Individual showings for everyone through every unit is not practical, and it's in everyone's best interest to not bother the tenants.

If you're not comfortable making an offer based on running your numbers, inspecting the exterior, and the interior photos, then my advice would be to make your offer contingent upon being able to see the inside of each unit within a few days. You can even schedule the earnest money deadline for the same timeframe. That way you can get in there to see it before even delivering EM, and if there are any surprises, you won't have to deliver the EM, start the title work, or spend money on an inspection.