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If you are referring to the original question we would not.
Who is going to make an offer and put up due diligence and earnest money without a showing?
We did seek a viewing and before we got one it was taken off the market and repairs made and the resulting listing was then out of our price range.
Local attorney just posted on FB the other day that they are trying to avoid closings of sight unseen transactions.
Because, the lawsuits are starting, over misrepresentation, 5 figure DD Fees, and EMDs.
And, all parties are getting dragged into the fray.
There are many off MLS listing brokerages that mostly cater to investors that sell every home sight unseen. Its not that uncommon, and the pricing is usually less that a traditional sale. If your paying fair market value then this would be odd if they are not allowing a contingency to see the home within a set period of days.
If your getting a wholesale price, or fixer upper home price, it is actually very common way to sell a home and never see it until close.
Remember these same investors buy at the auctions on the courthouse steps and you cannot see the home prior to bidding, when bidding figure worst case scenario, or put in a contingency that the offer is subject to interior inspection if they will allow such a contingency. If the home is say $100K under market, they will not allow contingencies like that, that is why you're getting a deal!
Local attorney just posted on FB the other day that they are trying to avoid closings of sight unseen transactions.
Because, the lawsuits are starting, over misrepresentation, 5 figure DD Fees, and EMDs.
And, all parties are getting dragged into the fray.
Do you think this might lead to capping/setting limits of DD fees in NC?
Do you think this might lead to capping/setting limits of DD fees in NC?
I hope not. And, that ship sailed out of the harbor years ago anyway. I don't foresee sellers suddenly agreeing to contracts without non-refundable money on the table.
If I want to out-compete you for my dream home, I want the unfettered right to throw down as much DD Fee as I want to.
I can circumvent any regulation by calling it a "non-refundable deposit," or put in a short deadline for forfeiture of EMD, or a zillion other ways to give up non-refundable cash, including having a good attorney draft an addendum creating a legit non-refundable status for my offering.
However, I AM currently strongly advising sellers not to accept "sight unseen" offers. That too often fans flames of buyers' remorse immediately.
I hope not. And, that ship sailed out of the harbor years ago anyway. I don't foresee sellers suddenly agreeing to contracts without non-refundable money on the table.
If I want to out-compete you for my dream home, I want the unfettered right to throw down as much DD Fee as I want to.
I can circumvent any regulation by calling it a "non-refundable deposit," or put in a short deadline for forfeiture of EMD, or a zillion other ways to give up non-refundable cash, including having a good attorney draft an addendum creating a legit non-refundable status for my offering.
However, I AM currently strongly advising sellers not to accept "sight unseen" offers. That too often fans flames of buyers' remorse immediately.
Not doing away with it entirely, but maybe setting a specific amount/percentage of asking price. We put a bid on a house in WNC, our realtor said not to offer a DD fee (new concept to us coming from another state) with our offer and wait for the sellers to ask. Our EMD was substantial and our realtor agreed. The sellers came back with wanting half of our EMD toward the DD fee. It seemed greedy to me because the house needed significant upgrades to major components and priced high, but that's how the market is now. Anyway, we didn't counter their offer.
I could never do the "sight unseen" home purchase that many have done and are doing. We'll see what the fallout from these hasty decisions looks like. Are your clients (sellers) heeding what you've advised?
Not doing away with it entirely, but maybe setting a specific amount/percentage of asking price. We put a bid on a house in WNC, our realtor said not to offer a DD fee (new concept to us coming from another state) with our offer and wait for the sellers to ask. Our EMD was substantial and our realtor agreed. The sellers came back with wanting half of our EMD toward the DD fee. It seemed greedy to me because the house needed significant upgrades to major components and priced high, but that's how the market is now. Anyway, we didn't counter their offer.
I could never do the "sight unseen" home purchase that many have done and are doing. We'll see what the fallout from these hasty decisions looks like. Are your clients (sellers) heeding what you've advised?
I have had a couple of "sight unseen" buyers, and it is so very stressful.
I have sold a couple of listings to "sight unseen" buyers, and after the attorney advice, I am now offering my advice for sellers to avoid accepting sight unseen offers. It has not yet come to the point of dealing with it.
In my local market, without a DD Fee, you may well not have even received a reply, or certainly not a reply of any encouragement.
As you were aware of the issues, you should have been better prepared to move forward to closing and the risk of walking away from your DD money should have been less.
And, DD Fee does not affect purchase price at all. All it does is help separate tire kickers from serious buyers.
I have had a couple of "sight unseen" buyers, and it is so very stressful.
I have sold a couple of listings to "sight unseen" buyers, and after the attorney advice, I am now offering my advice for sellers to avoid accepting sight unseen offers. It has not yet come to the point of dealing with it.
In my local market, without a DD Fee, you may well not have even received a reply, or certainly not a reply of any encouragement.
As you were aware of the issues, you should have been better prepared to move forward to closing and the risk of walking away from your DD money should have been less.
And, DD Fee does not affect purchase price at all. All it does is help separate tire kickers from serious buyers.
It freaked me out, not my husband, when our realtor kept saying that we'd lose the DD fee if we walked away from the deal. We were serious about buying, thus our EMD. The house had potential, but we would have had to put in a good chunk $$ to upgrade the original components. Had it been our dream home and in better shape, the DD fee wouldn't have deterred us. The house was taken off the market a month after we made our offer. I think the sellers weren't serious about selling.
Anyway, thanks for the advice. I enjoy reading your insightful posts.
It freaked me out, not my husband, when our realtor kept saying that we'd lose the DD fee if we walked away from the deal. We were serious about buying, thus our EMD. The house had potential, but we would have had to put in a good chunk $$ to upgrade the original components. Had it been our dream home and in better shape, the DD fee wouldn't have deterred us. The house was taken off the market a month after we made our offer. I think the sellers weren't serious about selling.
Anyway, thanks for the advice. I enjoy reading your insightful posts.
The fact is: We are just in an awful market. I hope you do well and get a home and a deal that you are pleased with!
Local attorney just posted on FB the other day that they are trying to avoid closings of sight unseen transactions.
Because, the lawsuits are starting, over misrepresentation, 5 figure DD Fees, and EMDs.
And, all parties are getting dragged into the fray.
And it doesn’t help that the home buying guy whose name rhymes with Stain (and he and his ilk are a stain on the market) is putting “Sight-unseen offers Welcome” as the first line in his listings.
Very common in DFW area. These are normally for tenant occupied properties. Has been this way for at least 5 years or so and more the norm now.
#1 if we don't do this we will get 50 groups of people coming thru the property and disturbing the tenant. No tenant wants showings, and then to be disturbed by 50 groups may even violate the lease and their right to "quiet enjoyment".
#2 this cuts the serious from the tire kickers.
#3 this tends to cut out buyers who do not not understand the concept of "as-is" and want to negotiate all kinds of repairs.
#4 if you are an investor you want to inherit a happy tenant. You get 50 groups of investors and when I say groups that could be a single investor viewing, but it could mean a family of 12 showing up ...brothers, sisters, kids, grand parents, etc in some groups. When the one lucky investor finally gets to visit the property if they are the winner, the tenant will likely be more accepting of the sale, vs having an army of people invading their personal space. That's the tenant you want, not the one that is 100% pissed they just had this army in THEIR house.
#5....getting an occupied property gains you several advantages.....#1 immediate rent at closing....#2..no vacancy....#3 probably no repairs....#4 no lease fee...so that might be a 2-3% bonus vs buying vacant properties.
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We were serious about buying, thus our EMD. The house had potential, but we would have had to put in a good chunk $$ to upgrade the original components. Had it been our dream home and in better shape, the DD fee wouldn't have deterred us. The house was taken off the market a month after we made our offer. I think the sellers weren't serious about selling. 
