Showing A Property Prior To Closing
I hope the TCI experts here can share some knowledge - Looking at purchasing my first property then L/O it. Has anyone had success with negotiating access to the property prior to close for T/B's? Should I accept the fact that I may not be able to show it until after closing, and build in a month or two of vacancy in my expenses? Thanks so much in advance for sharing any personal experience anyone may have.
Why not include a provision in your purchase contract with the seller for you to have access to show the property on reasonable notice to the seller (if seller occupied or vacant).
Thank you Nancy - Seems pretty straight forward, just wondering if most sellers are leary of this?
lansinginvestor,
I wouldn't think that there would be a problem if the seller's motivated. You could assure the owner that you'd always give me X amount of notice. Depending on owner's situation (always around or works, etc), maybe there are days or times for showings that might work best for them and you could try to schedule accordingly.
We haven't personally done a lease-option yet, but have studied up on it a lot. Have read that it is not usually good to show a house with the orig. owners in it. The people you show the house to may cut you out of the deal by going right to the owners... This probably wouldn't happen too often but why take the chance?
Also, when you are dealing with lease-option tenants they will want in the property fast. My advice would be to get the owners out, clean the carpet and paint the walls (and anything else that needs to be done), and then show the property. Have all of your advertising ready for when you are done with the clean-up. Or, you can advertise when you are cleaning up the house but don't show it until everything is done. Just have the potential tenants do a drive by, and let them know a tentative time for when the house will be ready. Get their information. Build a buyers list.
One other idea I have heard... Put up some signs that say lease-option and your phone number in the area where the house is. When you get a call tell them that you don't have any available any more but you will have one soon. Get their information and build a contact list.
kevkarb,
What I thought lansinginvestor intended here was to sign a purchase contract with the owner and then do a lease with option to buy with one of the people brought through the property prior to closing. If that's the case, the potential tenant/optionee can't go around and go straight to owner because owner has signed a purchase contract with lansinginvestor.
Nancy, In most states the owner has the right to cancel the contract anytime before closing. But there is then a 6 month period that the house cannot be sold.
MichaelChandler,
Glad that sellers don't have that right in PA.
Thank you everyone - Great information. The people in the forums make this the best site I have ever seen!
I was curious to find out what, if any, states give a property owner the statutory right automatically to rescind a contract to sell the property--not talking about a situation involving financing, or rescinding for good cause (like fraud, failure to disclose, etc.) or time shares.
So I did some online research and I did not find any references to laws of states that give a property owner the automatic right to rescind a contract to sell real estate. If anyone can identify the particular laws of whatever states, I would really appreciate receiving that information.
Hi everyone,
Get your agreement with seller
signed and have a performance mortgage signed
and file it in your local court house A S A P.This will cloud on the deal,if seller tryes
to go around you he can't because of your cloud.undefinedundefined
I am not aware of any states that allow someone to get out of a legally binding contract to sell/buy a home before it closes. There MAY be limitations on the extent of liability.
I'm not an expert here but just wanted to add that I have not heard of this before.
All the deals in OH that I heard of , the seller had to sell and could not get out of the deal.....but laws can change.
I've brought potential renters through properties I had not yet closed on and have had no problem. Once, taking a tenant through an apartment I was closing on the next day I noticed the appliances were missing. I noted this to the realtor and had $1000 cash back at closing for new appliances.
Ron
I believe that Michael Chandler misstated when he said that "in most states" sellers have the right to cancel a sale. He meant to say that he thinks that's the situation in Alabama. It's unfortunate that he didn't clear this up in a subsequent post.
Just to close the loop, I added in language to my offer to the effect of "buyer would like to show property to prospective renter before closing, buyer will give notice and set up as appointment" - No problems, they accepted the offer as is. Thanks again for all the help!