Would You Offer (not Buy) On A Property Sight Unseen?
Would you make an offer without ever seeing the property in person? If the agent approves of the property and your offer is contingent upon approval of your partner, building inspection, etc, would you do it?
In case you're wondering. My partner is freaking out about the thought of writing the offer without seeing the property.
If you appropriate out clause, I wouldn't have a problem w/ it.
Many times in MF, they won't let you see the property until offer is accepted. The MLS will typically say "write all offers subject to inspection".
I have done this recently, although I didn't like having to do it and didn't think it the most efficient way to sell the property. Realtor that was representing the property insisted on it (not surprisingly, as much as a hurry as she insisted everything was, it's still on the market).
) Even if the property DID suit me, I would have essentially torn it up and submit a new one with a different price once I had done some due diligence. The price I "offered" was in the reasonable ballpark, but it was strictly a ballpark figure.
I had plenty of contengencies written in (so many that it was essentially worthless). For me, the property didn't suit my needs so I thanked them for their time and moved on (a very vague "suiting my needs" blurb was one of my contingencies
Didn't like it, but that was the only way to see the property so I dealt with it.
As far as writing an offer, I dont think I have ever seen a property in person before writing an offer. One of the first things I do is write the offer and then when I see it in person, tell them to knock the price down because of whatever I see wrong, if applicable.
When given the situation in the past, I usually offer under tax value if I have to buy it sight unseen because of some mysterious time frame. If they want speed then they will have to take less money for the convenience. If the environmental is clear, and the appraisal is current, then you can cover yourself through contracts. But realize that while you may be protected, collecting what is owed to you will be challenging if possible at all.
In short, I would not suggest it, but it has been done before, and can be done again. Just make sure you are covered, and make sure at closing the property is not labeled "As Is", so that you have recourse should they be not truthful about anything. If they insist that it be labled that way, go back to rule number one...... Be able to walk away from any deal.
Good Luck,
Kyle
I just did it and I'm fine with it. My state is difficult to invest in so I need to look outside of my area if I really want to make a go of this. If you have a target state you can get a property manager on board, pay them 100 or 200 per inspection and have them check out the property for you. but the offer - you can do that immediately with no inspection and just make your offer "subject to inspection".
Some people can do this and others can't - I like to live just a little outside my comfort zone but not too far. You need to decide if you are comfortable with it.
BBADGER --
Your comment "if the agent approves of the property" ... what does that mean? Is this agent also the listing agent or your agent as a buyer's agent?
Your contingencies of approval of partner, building inspections (within a stated time period).
Writing an offer is one thing ... but having the seller and the listing agent accept or even counter with a subject to partner approval. Usually the seller would say then before you tie up the property ... that you & your partner see the property.
Cheryl Lopez
[ Edited by cheryllopez on Date 06/17/2004 ]
The agent that approved was my agent and not working for the seller. She was quick to say though that she's not a contractor and there may be things she didn't catch. Her comments were more general and not specific to the fire/water damage that the property has suffered. I'm trying to arrange for a contractor to have a look at the property also. Thank you all for your input!