Occasionally, we receive calls from new investors who express interest in a specific San Diego duplex, triplex, or fourplex and who would ask to be shown the interior right away. More often than not, duplexes, triplexes, and fourplexes can only be shown with an accepted offer and this concept is hard to grasp for some new investors. Encountering this numerous times prompted us to write this post.
For seasoned investors of multi-units, this is a very basic and understood prerequisite. It’s called “Shown with accepted offer”. Often the verbiage varies, but the concept is the same: the listing cannot be shown to any buyer until the buyer submits an offer, negotiates price/terms, and the seller ultimately accepts the offer. Only then can the buyer enter the property and see the interior/exterior of the property that is not visible from the street or public location.
Why do sellers often require this?
Sellers of duplexes, triplexes, and fourplexes typically require this when there are existing tenants in place and they do not want their tenants to be aware of the sale. They fear that if the tenants are aware of the sale, the tenants may leave. Also, sellers may not want to disturb their tenants with showings unless they have a buyer willing and able to meet acceptable price/terms.
Why is this an acceptable practice?
We understand that this requirement for 2-4 units can seem unconventional because the process for purchasing a typical residential home is the complete opposite. However, this is acceptable for two main reasons:
1) Because buyers customarily submit offers contingent upon a full inspection of the property. If there are issues that arise during an inspection or walkthrough, the buyers can typically cancel the agreement at no cost to the buyer.
2) If the buyer sees anything of concern once inside the property, the buyer can try to request repairs or renegotiate price/terms based on the results of that inspection.
Ultimately, the buyer still has protections in place even if they’ve already agreed to a specific price and terms prior to entering the duplex, triplex, or fourplex.
Don’t hesitate to call
We hope this helps set expectations for new investors of multi-units and clears up any confusion out there for new investors. As always, please don’t hesitate to get in touch with us for any questions or for help buying and selling duplexes, triplexes, and fourplexes in all of San Diego County!
Dycor Realty, Inc.
11440 W. Bernardo Court, #300
San Diego, CA 92127
DRE Lic# 01749497
Cell: (858) 449-1253
Fax: (858) 451-2588