Why would anyone buy a house without first seeing it? This is a question many newbie investors may be asking themselves. This however, is more common than you might think. Real Estate Investors in Phoenix, AZ buy many properties without seeing them in person. These experienced investors play the numbers game and submit offers on many houses that they spent very little time analyzing. An experienced investor knows his market and the neighborhoods. When a house goes up for sale, these investors know what the property price range is in that given neighborhood. They will spend no more than 1 hour analyzing the comps in the neighborhood and looking at the house via available pictures online and also doing a Google maps street view on the property. They will then prepare an offer and send to the seller or listing agent. More often than not, the offer that the investor/buyer will send out is less than the asking or listing price of the property. The more offers the investor sends out, the more chance of him getting a discounted property deal. If the buyer was to go and look at every single property he/she bids on, it will take them days to analyzes the properties and prepare bids on them.
As soon as an offer is accepted, the buyer/investor will go and look at the property and he/she will have 5 or 10 days inspection period. During that period, the buyer can reanalyze the deal and see if it makes sense. The deal can be canceled if the property for instance requires more repairs than previously anticipated.
This is a tactic many experienced real estate investors use in Arizona. Their goal is to submit as many offers as possible in as little time as possible. This makes them seek out the truly motivated sellers.
Once the offer is accepted, make sure to carefully walk the property, estimate the necessary expenses, get contractors if needed to give you bids on the repairs and reanalyze the deal carefully. Make sure it makes sense with your exit strategy. Some buy and hold investors in the Phoenix, AZ market often are willing to pay a little more for a property that they know will bring in steady cash flow to them in the long term. Fix and flip investors on the other hand, want to pay less for the property since all of their profit will depend on them selling the house in 3-6 months’ time.