More and more sellers are requiring prospective buyers to physically inspect their property before closing documents can be signed. But why can’t investors make an offer without viewing a subject property?
This is again an increasingly frustrating scenario that is irritating real estate investing professionals. So why do some sellers and Realtors take this position and what can be done about it?
A large part of this problem is often being out of tune with the industry. There are Realtors which have been licensed for decades yet, aren’t really up on how the business works. Many just don’t understand real estate investing or get why someone would be willing to buy a property sight unseen.
Others, especially in hot markets, are trying to minimize issues and don’t want to contract with buyers that may back out or try to renegotiate once they have inspected the property, especially if they have other offers from prospective buyers which have viewed the home.
In other cases, it is about locking buyers in and making sure they look the part in order to increase the odds of a successful transaction and securing commissions.
Experienced real estate investing pros often overcome this by letting the seller and their agent know how they work upfront. They let them know they are serious buyers that don’t leave endless contingencies which allow them to back out.
However, this stance could also be due to the property being in really poor condition or listing photos neatly masking the surroundings.
As an investor, all you can do is make great offers and avoid getting a reputation for ‘shotguning’ offers and dropping them. And remember that this might often be a sign of one of those agents that will only become more difficult as the transaction wears on. They may be best avoided, no matter how attractive the deal appears to be on paper.