Home Buying in Phoenix>Question Details

Hhwu88, Renter in Los Angeles, CA

bid first and then look at house in phoenix?

Asked by Hhwu88, Los Angeles, CA Tue Jan 29, 2013

My realtor asked me to read the electronic list he gave me and decide which house to bid. He said after my bid get accepted, I need drive to Phoenix immediately (within 7 days) to look at the house I bid. Then I must decide if inspect or not and if buy the house or not. In fact, in the area I am living, most of my friends look at the houses first and then bid. I asked my realtor why bid first and look at the house later in Phoenix. He said it would be too late if I don't bid it first. Other people will get it even before I go to Phoenix to look at it. So I have to bid first and look at it second. Is this procedure common in Phoenix? does my realtor tell me the truth?

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11
kevin belzer’s answer
I always preview homes for my clients. If it is urgent that an offer get in now before they can physically get to the property, I take a video and send it to them to watch. We still get the inspection period. If nothing else, this is the minimum I would expect out of me as an agent.
0 votes Thank Flag Link Thu Feb 7, 2013
How about asking your agent to go preview it for you, take photos, videos, etc. He/she would know a good buy when they see one. I do this for an Australian client that I have because she can't fly over every time a good deal shows up.

You should visit however and find "areas" that you'd like to concentrate on purchasing..then you're familiar with that area and see the future upside to your purchase. Then it's only a matter of your agent previewing it for you, taking photos, videos, etc. but you would ultimately see it during the inspection period unless you have such a great relationship with your agent that you trust their judgement.
0 votes Thank Flag Link Wed Jan 30, 2013
Hello...My firm offers a service to buyers who are out of state and can not view the property before a bid. It is a pre-purchase report. Our pre-purchase report card is a graded report with photos that covers major items in and around the home including the neighborhood. Investors use this report to decide if they want to continue with their offer for the home. (The pre-purchase report card is not a Full Arizona sanctioned Home Inspection, rather a "look see" for busy or out-of town investors, who want a professional opinion about the home.) Please contact us if you are interested.

Thanks and Good Luck!

Tim O'Neall
AZ Property Inspections
480-694-0650
0 votes Thank Flag Link Tue Jan 29, 2013
That is a very good question. I am a small real estate investor myself and most of my clients are investors. It is very common practice here to send an offer as soon as the house hits the market. The idea is that most of the good deals will probably be sold within the first few days. If you wait you won't have the chance to bid on the house.

Having said that, savvy sellers will usually wait a few days before accepting an offer. And a few will not accept offers from investors that haven't seen the property.

I can't tell you how many offers I receive from investor buyers on my listings. And in my experience the likelihood of those offers closing is less than 25%.

Now back to your question. It is up to you to decide if you feel comfortable submitting offers on properties you haven't seen. One advice though is that your agent, even though he is representing you, has a duty to be truthful to all parties in the transaction, including the seller. If he knows you are submitting multiple offers at the same time with the intention of buying only one of the properties, he is obligated to disclose that information to the listing agent.

Many people feel that submitting multiple offers on properties they haven't seen is the only way of getting good deals. There is another strategy that I use for myself and my clients that I believe bring better results. Just give me a call and I will be glad to discuss it with you.

I hope this helps.

Jose Dias, REALTOR
(623) 418-5700
Jose@MyFirstHouseAZ.com

http://www.MyFirstHouseAZ.com
0 votes Thank Flag Link Tue Jan 29, 2013
You should not normally bid on homes sight-unseen, especially if you don't know the areas they are in.
It is very competitive here for auctioned and HUD homes that require bids, and people who wait usually don't get the property. Experienced investment buyers who trust their agent will indeed bid, sight unseen. However, you do not sound like an experienced investor.

My suggestion for you, is take a few days, visit Phoenix and see an assortment of homes similar to what you are looking for, in a few different areas. Get an idea of what you get at different price points.

Then, if you are determined to find a home at an auction, you are in a better position to made a bid.

An inspection should always be included in a home purchase contract. A lot of auctioned homes are sold as-is, and often it is not possible to get inside them before the auction to determine their condition, but still, you want to know what you are getting into.

Best of luck,
Ann Griffin, Realtor
480-789-9584
anngmesa@gmail.com
Web Reference: http://pieceofarizona.com
0 votes Thank Flag Link Tue Jan 29, 2013
Dear HH:

Complex scenario. However, homes with attractive pricing in the Phoenix metro, especially under $150K often go in days at the present time. Not much time to waste if you see a bargain.
0 votes Thank Flag Link Tue Jan 29, 2013
88,
As you suspect, it is not common....today. But you must understand, It is not common for inexperienced folks to actually get a good deal, or even get in the game, because they are indecisive and take to long. You read these novices post on Trulia all the time. "Why can't I get my offer accepted?" The strategy, as explained is one way to get you in the game. This puts you in the league of those who know how to get things done. As more and indecisive buyers catch on to this, you will see non-refundable deposits or 'As-Is/Where is' contracts being required. As an agent who helps owners sell real estate, having the property tied while a potential buyer 'yadda, yaddas' for two weeks is unacceptable.
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But today, this is an option. Don't lapse back into the mode of indecision. If you want to make a purchase you need to be ready to act...decisively. Your agent is showing you one road to success. Why are you second guessing the professional you hired to look out for you best interests?
0 votes Thank Flag Link Tue Jan 29, 2013
Our market in the lower price range is very fast and you could make a list to see homes next week and quite a few of them will be gone when you arrive. I don't recommend or advocate this method and I don't really believe that there won't be other homes on the market when you arrive that would meet your needs. Typically I build a list with you for days leading up to your arrival, those that are still available we go and see and we keep looking at what comes on the market even after you arrive.

I have been noticing a trend where homes new to the market have offers quickly and within a few weeks they are back on the market. This is not good for the buyer or seller as it can waist time for both parties. In response to that, several agents require the buyer to see the property and I also check to see if the agent has shown the property prior to presenting their offer since not showing a property adds an element of risk to the offer.
0 votes Thank Flag Link Tue Jan 29, 2013
Are you buying houses through some sort of auction system? The market is very competitive here! Especially at lower prices. Perhaps your agent was trying to schedule the inspections on the home for when you are here in town.
0 votes Thank Flag Link Tue Jan 29, 2013
It is not common but some agents do suggest this to their clients.

Our market has shifted and there is limited inventory compared to a year or two ago. If you are wanting to purchase property site unseen and then use the inspection period to do your "due diligence" that is one avenue.

You can also plan on coming out and have your agent set up properties for you to see and understand what these properties consist of.

Would you purchase a car without seeing it and without checking under the hood and take it for a test drive?

What are your intentions of this property? A second home or rental investments? Have you done your homework to make sure these electronic bid properties are in area's that will do what you want?

I can't answer for any of my other fellow realtors - for me I believe it's important to meet the client and find out what they're looking for if at all possible. It's a process and one once I go out and meet with them and show them property I'm better equipped to preview homes for them if they are out of state as a second home.

If you're looking to acquire properties as an investor and not care where or condition then the process you're doing is one that will work.

Hope this helps.

Debbie Nieman
Realtor Keller Williams Sonoran Living
602-799-5239

http://www.diverdebi.com
http://www.diverdebirealty.com
0 votes Thank Flag Link Tue Jan 29, 2013
Hhwu....

The basics here are accurate....any really good offerings that come onto the market as "foreclosures" will go to contract very, very quickly. Thus, those buyers that are prepared to make a quick decision clearly have an advantage over others.

You agent is telling you to make a quick offer and then use an inspection as a "fail safe" to get out of the agreement in the event you don't like the home. If this results in a multiple offer situation, you may be asked to present your "highest and best" offer...on which the lender will make their buyer decision.

There is always great risk in buying anything "sight unseen!" From where I sit, seeing the property before making an offer, makes a whole lot of sense.

Good luck,

Bill
0 votes Thank Flag Link Tue Jan 29, 2013
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