Tenant won't let you in? No problem!

By
Real Estate Agent with Evers & Co. Real Estate
http://actvra.in/yQt

A house that can be bought but not seenThe case of the Sears kit houses in College Park that couldn't actually be shown (while being offered for sale) does not have to be a lost one after all.The sellers--or their agent--of a listing in DC's Shepherd Park neighborhood show us how to handle the situation:

"BANK FORECLOSURE BEING SOLD AS IS. HOME DOES NEED SOME MINOR TLC BUT OTHERWISE IN GREAT CONDITION," say the agent remarks in the listing. And then comes the kicker: "PROPERTY IS CURRENTLY OCCUPIED BY A TENANT THAT IS REFUSING SHOWING, BUYERS WILL HAVE A CHANCE FOR INSPECTION WITH WALK AWAY ONCE OFFER IS ACCEPTED."

The house is offered for a stately $975,000. And, at least in the pictures, it looks like a place with lots of potential. So, who cares what that needed "TLC" will cost you. Just write down a number for your offer, and you'll find out later!

Who says there couldn't be an easy solution?

(Picture courtesy of Champion Realty and MRIS.)

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© 2012, Catarina Bannier 

www.BannierHomes.com

www.DCHouseCat.com

www.DCHouseSmarts.com

     

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Topic:
ActiveRain Community
Location:
District of Columbia District of Columbia County Washington Shepherd Park
Groups:
Diary of a Realtor
Historic Homes
Tags:
mailorder homes
catalog houses for sale
sears kit homes for sale
shepherd park dc homes for sale
tenant issues

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Show All Comments
Rainmaker
124,582
Kamal Salim
A Superior Level of Service !
Realty Associates

I agree with Catarina to some degree. In my leases, I always include that tenant must show the property 60 days to lease expiration, so if they do not, I can force the showing just like Catarina says. If they have a lease however, and it is still current, with more than 60 days to go, than no, we do not have the right to bother the tenants.

April 15, 2012 08:53 AM
Rainmaker
656,723
Eileen Hsu
LICENSED REAL ESTATE SALESPERSON
Douglas Elliman Real Estate

We always do our best to work with tenants preference. Sometimes it is very difficult and we encourage the owners to speak with the tenants directly on this.

April 15, 2012 09:03 AM
Rainmaker
705,207
Juli Vosmik
Scottsdale/Cave Creek, AZ real estate 480-710-0739
Dominion Real Estate Partners, LLC, Scottsdale, AZ

This isn't unusual in our area, unfortunately.  I know of quite a few cases where the tenants had to be taken to court to be forced to allow access, even though the lease states only 48 hours notice is required.  Of course, the courts always side with the landlord and the verbage in the lease, but it does cost the landlord a fee just to file to ask for the help.  One of the risks of being a landlord.

In your case, with an REO, usually the tenants are much more cooperative and were pre-screened and coached by the bank ahead of allowing them to move in.  I wonder if this is a case of a tenant who was there prior to the foreclosure with the bank having to honor the lease in place?

April 15, 2012 09:13 AM
Rainmaker
937,269
Adrian Willanger
Profit from my two decades of experience
206 909-7536 TheHomeFunnel.com

Catarina, I hate situations like this where you can't preview/show a property to an offer has been made. I've seen them done more often in houses that are to be down down and have little to no value and the real value is in the land, that's pretty understandable. Thanks for sharing this article. 

April 15, 2012 09:13 AM
Rainer
222,215
Carie Shapiro
Managing Broker-IL; Pre-License Instructor-IL; Broker-TX

@Rosalind #20 ... paying tenants off to show the property??  Sheesh ... now I've heard everything!

April 15, 2012 09:37 AM
Rainmaker
309,951
Leslie Prest
Owner, Assoc. Broker, Prest Realty, Payson,
Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ

Lord! We do both rentals and sales, and we have never had a problem with a tenant not allowing showing ON THE FEW OCCASSIONS when we do both together. We tell Owners that they are far better off to PICK ONE- SELL OR RENT rather than try to do both.

There are rental laws everywhere and I woudl imagine that the tenants can't really block all showings IF the agent knew what they were doing.

April 15, 2012 09:43 AM
Rainmaker
532,613
Morgan Evans
LICENSED REAL ESTATE SALESPERSON
Douglas Elliman Real Estate

We encounter the tenant not giving access in a lot of situations, so I definitely understand not getting into the property. 

April 15, 2012 09:46 AM
Rainer
129,436
Andrew Martin
Keller Williams - Danville

We see this in my market. No big deal. Write the offer and wait and see what happens. No different than buying a foreclosure at auction and that's happening every day.

April 15, 2012 12:06 PM
Rainmaker
271,033
LaNita Cates
REMAX of Joliet

It's AMAZING the rights tenants have over a homeowner. I would NEVER write an offer and "wait and see what happens". That's ridiculous. Yeah it's being done at auctions which are normally for investors.

April 15, 2012 12:17 PM
Rainmaker
570,044
Bill Gillhespy
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
16 Sunview Blvd

Yikes !  Hope the buyers have nerves of steel on this one.  Still, no doubt the marketing will really be a challenge.

April 15, 2012 12:43 PM
Rainmaker
737,723
Gabrielle Kamahele Rhind
Broker/Owner
KGC Properties LLC, Tucson Property Management & Real Estate

HI CATARINA!  Yikes is right!  For a tenant to be this difficult the landlord must have really done them wrong at some point - in some way!  At that price - I think I would want to see it first though!

April 15, 2012 03:02 PM
Rainmaker
409,412
Michelle Francis
Realtor, Buckhead Atlanta Homes for Sale & Lease
Tim Francis Realty LLC

Catarina, 

Interesting problem.  We handle a lot of high end leases in Atlanta.  Fortunately, none have been foreclosed.  

However, all of our Georgia Association of Realtors leases specify that we can do showings the last two months.  In addition, it states a charge - we fill it in as $75 for each non-showing incident!!!!  

Because our lease is detailed and specific, we just don't have this issue.  Every once in a while, it doesn't make sense to show, - but no more than the average of with our owners.  

All the best, Michelle

April 15, 2012 03:31 PM
Rainmaker
341,179
Dawn Maloney
330-990-4236 Hudson Stow Cuyahoga Falls Silver Lak
RE/MAX Haven - Northeast Ohio Real Estate Specialist

I like the idea of putting a non-showing charge in the lease upfront...that would be a good solution IF the tenants were actually still paying rent.

April 15, 2012 04:14 PM
Rainmaker
973,701
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

Catarina, we had a situation with a tenant in a Freddie Mac property. They have 90 days to move out and if they don't cooperate, there's not much the bank can do. This person was difficult but we did finally get in and wrote an offer. Not sure how many are going to want to write when they can't see anything until the offer is accepted, especially at that price. Wow.

Sharon

 

April 15, 2012 08:46 PM
Ambassador
1,550,626
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

Catarina - We have a lot of short sales that aren't shown until after there is an accepted offer.  It's not fun.

April 15, 2012 09:02 PM
Rainmaker
187,641
John F Muscarella
Broker/Owner, Plymouth County / Cape Cod, MA
RIVER FARM PROPERTIES, LLC

It's definitely a problem.  And even if they do let you in the home condition is often not conducive to showing - otherwords a mess!  

April 16, 2012 03:23 AM
Rainmaker
161,505
Catarina Bannier
DC Real Estate The Smart And Fun Way
Evers & Co. Real Estate

Wow -- I'm so overwhelmed! I've been away for a day, just to return to all your great comments. I will try and answer as much as I can tomorrow. What an amazing community this is!

April 16, 2012 08:41 PM
Rainmaker
161,505
Catarina Bannier
DC Real Estate The Smart And Fun Way
Evers & Co. Real Estate

Steven--I'l be surprised if it works! I'll watch it unfold.

Marte--Yes, and DC tenant law is very tough on the landlord. The tenants can really hold out, and if they're not cooperating, it can be an expensive legal process getting them out.

Lenn--all the right questions, and the whole thing is very mysterious. Showing instructions are "confidential," and is was on the market a couple of years ago for $1.5M (no Shepherd Park house ever sold for that), even then with tenants. At least it could be shown at the time.

April 20, 2012 06:46 AM
Rainmaker
161,505
Catarina Bannier
DC Real Estate The Smart And Fun Way
Evers & Co. Real Estate

Jared--you're so right. If someone cares less, though, they might take the listing anyway. Not much work involved when you can't do anything until after it's sold...

Dale--well, yes, that would be the approach of reason. Perhaps the bank has no desire to get into any legal fights, though. and i imagine that the rent on an 8,000 sf house might be a nice way to tie them over...

April 20, 2012 06:52 AM
Rainmaker
161,505
Catarina Bannier
DC Real Estate The Smart And Fun Way
Evers & Co. Real Estate

Rob--very true. Why would they care? But the sellers sometimes are afraid of losing the time (i.e., income) and don't see how much it will actually cost them to keep the people in. We have actually lost listings because we suggested they wait.

Brian--None, I bet! And all too often, we have seen a rather sad picture after tenants moved out.

April 20, 2012 02:07 PM
Anonymous
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Rainmaker
161,505

Catarina Bannier

DC Real Estate The Smart And Fun Way
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