Many investors want to see properties they’re interested in right away – but some duplexes, triplexes and fourplexes in Silicon Valley can only be shown with an accepted offer. But what does that mean, and how will it impact your ability to see a property you may be interested in investing in? This guide explains.
What Does “Shown With Accepted Offer” Mean?
When a property can only be shown with an accepted offer, it means that the prospective buyer can’t go tour it until they’ve submitted an offer that the seller has accepted. It seems strange to many new investors, but the reason many sellers require an accepted offer before showing is that there are tenants living in the building.
Many sellers don’t want their tenants to be aware that they’re selling the property. There are various reasons a seller may want to keep that information private – but among the most common is that tenants might move out if they know the property is going to a new owner. Then, if the owner decides not to sell after all, there are no tenants living there and paying rent. (This can also be bad for a new owner – the new owner would most likely appreciate the tenants staying put.)
Even if they’re confident that the tenants will stay put, many owners don’t want to disturb their tenants with lots of showings. The tenants aren’t the ones selling the house, so inconveniencing them feels wrong to many owners.
Will You Be Stuck Buying a Lemon of a Property if You Can’t See it Before You Make an Offer?
You won’t get stuck buying a bad property if you make an offer before seeing the house. Although it seems counterintuitive, the fact that you’ll hire a property inspector to check out the home (and you can go with the inspector as they check the property’s systems and structure) helps protect you. If any issues come up during an inspection, the home inspection contingency in your contract lets you walk away from the deal without losing your deposit.
Even in the absence of an inspection, you can check out the property after you’ve made an offer. Typically, anything you discover during your walk-through is open to negotiation with the seller. If you see anything that concerns you, you’ll still have the opportunity to talk to the seller about the property’s condition and adjusting the sales price.
Is “Shown With Accepted Offer” Common?
Seeing duplex, triplex and fourplex properties listed as shown with accepted offer is very common in the investment industry. For new investors, it seems strange (especially because you’d never buy a single-family home to live in without seeing it first), but the practice is pretty standard among investors. When you later sell your own investment properties, you’ll likely do the same thing.
Are You Buying or Selling a Duplex, Triplex or Fourplex in Silicon Valley?
If you’re selling a duplex, triplex or fourplex in Campbell, Cambrian Park, Los Gatos, San Jose, Santa Clara, Saratoga, Willow Glen or another community in Silicon Valley, we’re here to help. Call today or fill out the form below to find out about our innovative marketing plans that can put your investment property in front of all the right buyers.
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