Buying a Home Sight Unseen
My, how real estate has changed over the past year. In 2021 when everything shut down, many of us real estate agents didn’t quite know what the market was going to look like on the other side, let alone how people would do real estate moving forward.
One of the biggest changes that I have seen in my business is buyers purchasing homes without seeing them. Yes! Consumers putting in offers, getting them accepted, and bottom lining the purchase agreement without seeing the home in person or stepping foot in it. Last year along I personally had clients purchase homes without seeing them for themselves ahead of time (of course, I viewed it myself on their behave). Why? Well, part of it is because of how competitive this market is right now and buyers not wanting to waste a moment potentially losing out on a house. But more importantly, it’s the “how” we are going to focus on.
Technologies. In real estate now there are so many technologies available to both the agent and clients compared to what it was when your parents bought their first home. Many homes have virtual tours of the inside, amazing professional photos, you can also check out the neighborhood by looks at the street view and satellite view of maps online. Additionally, no longer do you have to sign the purchase agreement in person, that’s all done electronically. All of which help make it easier to get to the decision to put in an offer and get it accepted.
Due diligence. Even if you do not see the home in person, you still have due diligence that you are allowed to take based on the purchase agreement. One of the main ones is the inspection of the home. This allows you to have an independent inspector come and inspect the home for you and bring to your attention any potential problems or areas of concern. This inspection can also include a well and septic inspection if the home has one. At the height of the pandemic last year, many of my clients couldn't be present during the inspection due to protocol, so a lot of inspectors will do a FaceTime walk-through of the home and provide a detailed report at the end. Another piece of due diligence is reviewing bylaws from the association of condos and subdivisions to make sure that you understand them and are in agreement with them.
Appraisals and other lender-specific requirements. If you are paying cash for your new home, you most likely will not have an appraisal. But, if you are getting a mortgage, the bank will most likely require an appraisal of the home. By getting an appraisal of the home, you, as well as the bank, will know exactly how much the home is worth and you will know right away how much equity you are walking into the home with. Depending on the type of loan, sometimes a bank will also do an inspection (along with the appraisal) to make sure the home is up to a certain standard for them to loan. This inspection (usually for FHA and VA loans), will call out anything that the bank believes should be taken care of as well before closing on the home. If for some reason you as the buyer cannot come to an agreement with the seller on what the appraisal and inspection come back at, the deal could fall through, but also prevent you from purchasing a potentially unsafe home.
If you find yourself in a position to purchase a home without seeing it, make sure you first, have a trusted agent to represent you. Then from there, you can fall back on these things that will help make the transaction go a little smoother for you and your family.