Recently a buyer made an offer on a rural home without viewing the property first. The agent he hired advised him to view the property prior to making the offer, and further insisted that he at least view the property prior to closing. Instead of following that advice the buyer sent a surrogate, his brother, to investigate the property after the offer was signed around. The buyer insisted that this unusual method was something he had successfully done in the past and was something he was comfortable with.
Fast forward a couple of months after the deal closed, to when the seller and brokers have their money and have moved on; The buyer has finally taken possession of the property and is now upset because things aren’t what he had envisioned. Some of the things he is unhappy with are; faulty windows, incomplete sprinkler system, standing water on the property, etc. In a letter to his agent requesting relief for these items, he not only threatened to sue the seller for misrepresentation, but brazenly suggested a $20,000 remedy.
One interesting point concerning this scenario is that the irate buyer actually signed an addendum in his original offer that says exactly this; “BUYER ACKNOWLEDGES: Buyer has observed and investigated the Property and has reached Buyer’s own conclusions as to the adequacy, acceptability, and suitability of the Property and surrounding area, and the feasibility and desirability of acquiring the Property for Buyer’s intended use, based solely on Buyer’s examination of the Property.” This assertion from the buyer was clearly fraudulent! It makes one wonder how a judge would look at this case, even if the buyer is right about the items he listed.
In this frenzied market, there are many buyers who are tempted to write such offers without first viewing a property, in order to be first in line, or to be sure they at least have a chance to get an offer presented. A cautious seller or experienced broker would be wise to consider such an offer inferior.
In terms of risk reduction, accepting any offer when you are aware that the buyer has not yet seen the property is just not prudent! Any buyer who presents an offer without revealing that they have not viewed the property personally, is making a fraudulent representation to the seller.