In fact, nearly half of homebuyers in 2020 said they went ahead and submitted an offer on a home without visiting it first (but, of course, COVID-19 had something to do with this). This practice is especially prevalent in parts of the country where buyers have all sorts of legal ways to cancel a contract without penalty. In places where it is legal to cancel as a buyer, the seller may have up to 10 days to respond to a cancellation request, although such rules vary by state. Writing an offer before seeing the home is neither a welcomed nor popular practice among many home sellers. Naturally, they prefer to know that the buyer is already committed—or has at least made a decision based on having personally toured the home. Some buyer’s agents, on the other hand, tend to believe differently. They may be eager to put their buyer into the contract and “lock down” the property before another buyer tries to snatch it up.
Offers That Seem Too Good To Be True
Sometimes, buyers who feel extreme pressure to immediately write an offer and buy a home may end up promising too much. This is because they have it in the back of their minds that they’ll be able to renegotiate the deal later. But, of course, the renegotiating part isn’t something they mention upfront. They might offer such perceived benefits as:
A cash offerAn exceedingly high sales priceA waiver of certain inspectionsA waiver of an appraisalA very short closing date
The average person might say people don’t play those kinds of games, but at the same time, a regular person doesn’t buy and sell real estate every day. After a buyer finally sees the home, they might then decide to cancel the transaction.
Determining Buyer Intention
One of the ways to determine if a buyer is writing an offer before seeing the home is to ask the agent. The National Association of Realtors places the requirement of honesty in its first article of the Code of Ethics—and it’s a rule that Realtors must pledge to follow. The article states that all agents must treat participating parties with honesty. The problem with directly asking a buyer’s agent is that the agent may not be truthful. Of course, the agent most likely does not see the answer as a bald-faced lie, because the agent could twist the answer. The agent might say, “We were there,” which could actually mean: “me, myself, and I.” It is not the case with all agents or even the majority of agents, but some agents are capable of telling such white lies, and it’s often this small handful of dishonest agents who seem to cause the most problems in real estate. When pressed and further questioned, an agent might finally admit the truth. In such a case, the sellers might pass on the buyer’s purchase offer and take the next one, even if that next buyer’s offer was not as attractive.
The Bottom Line
The bottom line is if the buyer has written an offer without seeing the home, it’s a good idea to inform the listing agent and not intentionally withhold this information. It’s even more important to own up to the fact if you are asked about it. Telling the truth should not be that hard. Should you decide to place an offer on a home without first touring it, be sure to talk to your agent, especially since your agent may be able to lead you through a virtual tour of the home. They also could try to list the pros and cons of going ahead with the offer. As long as you trust your agent, you could be putting yourself in a position to win in a competitive market, while also having an edge on slick cash buyers.
