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Making an offer sight unseen
My husband and I just started the house hunt process (we are already approved and ready to write offers) and found a house that seems like it could be a nice fit: perfect size, great location, VERY low price. Here's the catch: it's a short sale (that doesn't bother us) and they are not letting people onto the property at all. It's a drive-by only because there are tenants currently living in the house. Would this be a deal breaker for you? Here are my reasons for still wanting to consider:
1. We were planning on buying a house in the $200,000 range, this house is listed at $150,000. So, even if there was damage and things we needed to repair, we could finance in extra money for those repairs before we even moved in. (FHA 203k Streamline)
2. The house and front yard look GREAT from the outside, very well maintained. This makes me *hope* that the inside wouldn't be too terrible.
3. If our offer got accepted and the inspection showed a ton of repairs that we didn't want to deal with, we could back out.
I would love to hear your honest thoughts on this issue. Thanks!
Re: Making an offer sight unseen
I wouldn't. It's so hard to tell if a house will work for you without being in the inside. Even if there are pictures, it's just not the same until you get in there.
If you are serious about this also talk to a real estate attorney. I'm not sure if you'd be obligated to let the tenants stay through the duration of their lease (if they have one). I assume if the owners are short selling the house, the tenants aren't happy and have no obligation not to punch a bunch of holes in the house and take everything with them (or leave all their trash) between an offer and closing.
It just kind of sounds like a disaster and home buying is already a stressful time when everyone cooperates.
Absolute dealbreaker. Both properties we saw that were short sales were a complete disaster area. (I'm pretty sure one was a hoarder).
But honestly, even if it weren't a short sale I wouldn't buy a house sight unseen. To me, that just says they are hiding something. And pictures are very deceiving. Do you get to go inside with the inspector?
As far as I know, yes. But you make a good point about short sales being disaster areas.
Very, very true. Thanks for the opinion!
We've encountered this before, and you would be able to view the home during the inspection. So basically, you would need to pay around $400 to view the home and decide if you really want it.
Personally I wouldn't do it, but if its a total steal it might be worth it. How long have you been looking? Are you confident that this is a great deal? Usually people do this when they have uncooperative tenants or they really don't want to let the house go. They could be trying to just prolong the process as long as possible.
My realtor told me that it happens usually when the tenants aren't aware that the house is being sold. So you're right, they are definitely hiding something. And that does make me wonder what the tenants will do to the house when they find out they have to move.
That's a scary thought. I've seen some houses that were foreclosures that had been completely trashed by the owners when they found out they lost their home. I mean tons of holes kicked and punched into the walls, carpet ripped up, wires cut. Anything you can think of. That's a messy situation that I would steer clear of, myself.
If the tenant doesn't know they are selling, that is a whole other worry. How much notice is required in their lease for them to get out? Are they just planning on telling them "Yeah, we sold this house and we're gonna need for you guys to go ahead and leave by tomorrow?" I would be scared of what they would do in retaliation.
The fact that you would be able to view the property during the inspection makes it better in my opinion, but I don't think you should have to pay an inspector just to view a property. And you will have already went through a lot of headache with the bank if you don't like it then.
Not a total dealbreaker for me.
If there were interior photos of the home that looked good, I'd consider it (not a foolproof indicator, but I've seen many SS listings with exterior photos only). If most properties in my price range were selling quickly, I'd consider it. Certainly not my first choice if there are other viable options.
When would the tenants lease be up? If you buy the home, they may be entitled to live there for the remainder of their lease term.I would get a RE attorney to inform you of your rights and the rights of the tenants.
Absolutely not.
The house that we looked at before we bought ours (and offered on) was a short sale and from the photos it looked fantastic, in person it was rough around the edge, and in actuality it was a disaster (following inspection).
I wouldn't recommend it. There could be obvious problems that you would see by checking it out in person, but you'd be stuck waiting for (and paying for) an inspection on a house you may not have otherwise offered on.
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