Do I need to see the interior of a home before making an offer?
The answer: No.
It's called writing an offer "Subject To Inspection"
How do these "Subject To" offers usually transpire? Well, they are very common among investment properties that are tenant occupied. I write these kind of offers for my clients all the time.
The usual structure and premise of the offer is that it is coupled with an addendum to the contract that states the buyer has the right to revise or rescind the offer after viewing the interior of the property.
With investment property (and sometimes non-investment property), for the seller it creates a barrier of qualification that only allows serious buyers into the arena. In the case of investment property, it usually is a big deal to make arrangements with the tenants to let someone into the property. Not only does it take the cooperation of the tenant, but in most states there are legalities surrounding the entrance to the property and the proper time period of notification to the tenant in advance.
In the case of non-investment property, there are certain scenarios that would make sense. Perhaps the property is going through renovations, or the owner of the property is out of town for a while. In these cases, it is possible to negotiate an offer and a possible acceptance before the buyer actually sees the interior. But once again, there will usually be language in the contract stating the buyer has the right to revise or rescind the offer after interior inspection.
Here's a sample of a simple addendum which covers this type of offer:
I've seen this scenario on occasion on owner-occupied properties. Sometimes it makes sense, and sometimes it's just ridiculous.
Here's something to consider: Many buyers are afraid to do it. And because of that, writing an offer Subject To Inspection may end up working to your advantage. It's along the lines of the theory that whenever most people are running one way, you should probably be running in the other direction. Whenever you're writing an offer Subject To Inspection, you can do it fairly fearlessly as long as you have the correct language in the contract.
No fear!
Ralph Gorgoglione
Los Angeles Homes For Sale
Los Angeles Condos For Sale
Los Angeles Townhomes For Sale
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