Just yesterday we had the annual visit by Linda Bianchi, who is the Director, Professional Standards of Norbar, the North Bay Area Association of REALTORS®, speak on current hot button issues and how we should handle these. We are bound by a Code of Ethics and many of the happenings which are generating record complaint phone calls to Linda are addressed on how we should act to avoid these calls and doing things properly.
One topic discussed was how many buyers are putting in offers on properties sight unseen, not even by their agents writing these offers. These offers are often cash and many times quite a bit higher than the asking to insure they are the winning bidder and get accepted by the seller. These buyers would get the property into escrow and then after some investigation, ask the seller for concessions, most of the time a price reduction, to make their final purchase more in line with what would have been a true market price.
The just today when reading the current issue of Market Matters put out by the CALIFORNIA ASSOCIATION OF REALTORS®, I was not surprised to this is happening both statewide and throughout the country. Given how widespread this practice has become, sellers and listing agents should be advised to confirm a buyer has seen the property first. This is just one of the hot topic so tune back in in the next week or two to read about the others.
In hot market, bid first, see house later
The lack of available homes for sale is creating a sellers’ market, and in some areas generating offers from buyers who haven’t even seen the home on which they are bidding.
- Buying homes sight unseen is a small but growing trend in some areas, fueled by the over-competitive market and burgeoning interest by international buyers – and enabled by technological advances.
- Buyers might make offers without seeing a house for several reasons: They live elsewhere or are away for business or personal reasons; they had scheduling conflicts and couldn’t visit before bids were due; they’re investors accustomed to buying just based on property characteristics; or they’re taking a scattershot approach of making lots of offers and seeing which gets accepted.
- Although some buyers are making offers without seeing the properties in person, they’re not going in completely blind. In addition to extensive photos and video tours, plenty of websites offer buyers the opportunity to learn about neighborhoods and schools and research comparable sales.
- Often, those who bid sight unseen have a chance to tour the house during escrow and can still cancel the deal. Some sales, such as courthouse auctions that are the final stage in the foreclosure process, don’t offer a chance to see properties in advance, nor is there an inspection period.
If I can help you find the perfect Napa Valley property, please contact me