When you lock up a deal and you would like to assign your contract (or do a double closing), the buyer will want to get in the house to estimate repairs.
But, you don’t own the house yet, so do you even have the right to let them in? How do they see it?
If you have disclosed your position in the deal to the seller correctly, you can get permission to show the property from the seller.
Once you have permission, you can let your potential buyers in.
The best way is to have a lock-box on the property with a key. You would get the key from the seller and then head to your local hardware store and buy your own lock box.
Usually, a seller is OK with giving you the key. Naturally, they are hesitant to do this for fear of the unknown, but when you remind them that the house needs work and that there is practically nothing to steal… they will often give you the key. This is especially true when they are not local.
If you were not able to get a key, then try this…
Let the seller know that you tend to get a half dozen or more buyers, contractors, and partners who will want to see the inside. Usually they will give you the key once they hear this because they “have had it” with the property, and don’t want to waste any more time.
Once you get the lock-box up, you can give the code to your qualified buyers…
If your buyer provides you with “proof of funds” or they have done a deal with you before… the risk of anything happening is very small.
If this is a new person that you think would make a good buyer, but you are a little hesitant… you may want to actually meet them at the property.
What if the Seller Won’t Give you a Key?
If you were not able to get the key, you can either have the seller show the property to you and each buyer on separate showings, or…
To save everyone a little time and to create an “auction effect”, you could schedule a mini-open house. This is a window of time that works for you and the seller which you think potential buyers will be able to fit in their schedules. It could be 1 hour… it could be 4 hours… it could be on a weekday, or a weekend… whatever works.
Try to make the window of time as narrow as possible… when buyers run into each other, they see that there is demand for the property, and they are more likely to sign the deal right then and there.
If the property is bank-owned, this process is easier. The lock-box is already on the house; you just have to get the code from the Real Estate Agent. It’s generally easier to get access when there’s an agent involved because they are used to the process of showing properties and aren’t emotionally attached to the house. They also understand that you’re saving them time and trouble.
Every deal is different. Plan to use some creativity. Do whatever it takes but know that when you have identified a motivated seller AND a motivated buyer… everyone wants to close and should be willing to work with you.
Thanks for reading!
Best Regards,
Cameron Dunlap