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andresr/Getty Images November 08, 2022 Rae Hartley Beck is a writer and editor with over eight years of experience in personal finance. Her work has most recently appeared in Bankrate, MoneyWise and Investopedia. Rae specializes in credit card rewards, investing, real estate, home improvement, lending and financial advice for millennials, Gen Z, Gen Alpha and their parents. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Bankrate logo The Bankrate promise
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Today, 9 use the internet to search for homes, according to the “2022 Home Buyers and Sellers Generational Trends Report.” Buying a house sight unseen takes that a step further by completing the entire home buying process — from initial search to making an offer to closing — remotely. It helps that listings are more sophisticated than ever before. Most major have incorporated features like video walk-throughs, drone photography and 3D modeling to give buyers a feel for a property before they set foot on it. Some platforms take it a step further by allowing prospective buyers to schedule live video-chat tours the real estate agent . Some, like Opendoor in certain markets, specialize in “self-guided tours” for virtual buyers — giving them an exclusive, advance heads-up on properties before they are listed for everyone. Since your virtual viewing isn’t a preview, but the only sight you’ll see, though, a live video tour is essential whenever considering buying a home sight unseen. The seller’s agent may offer to do a video walkthrough for you, but they’ll make sure to show the property in the best possible way. For a more candid look, use your own to walk through the property, showing every nook and cranny. Try to have a friend or relative who knows you well tour the home for you, too. Along with potential problems, they may notice features or aspects that they know you will dislike or find unfeasible. Like what you see? You can sign and send your offer letter, and any back-up financials, via email. And if the seller accepts, you can also sign the digitally. Closing on a sight unseen home
You can send your deposit to the title company through a wire transfer or money transfer service like Zelle. It’s essential to be aware of and ensure that you’re protected whenever you send money digitally and communicate with people you’ve never met in person. Always double-check routing and account numbers and verify any information directly with the source. are done in person, but you don’t need to be present personally for them. While you don’t pick your appraiser — the lender does that — it’s vital that you to check everything on the house and give a detailed report since you can’t see it for yourself. The actual closing process of signing documents can be done entirely online in 41 states so far, an advancement made possible during the pandemic. However, while state laws may allow it, and , many lenders still want a closing to be done fully or partially in-person. If a digital closing isn’t possible for you, or you prefer physical documents to sign, you can use the services of a remote notary who comes to your current location to witness your closing. Tips for buying a home sight unseen
Unfortunately, buying a home sight unseen “increases the risk of an unfavorable outcome for the buyer,” says Alex Capozzolo, Co-founder of Brotherly Love Real Estate in Philadelphia.There are ways to mitigate the risks, however. When buying a home sight unseen do
Pick a who has sold homes sight unseen/dealt with long-distance buyers before Ask for a live 3D walkthrough of the home at different times of day Get a visual tour of the neighborhood and surrounding area, too Get your agent or a friend to do the pre-closing When buying a home sight unseen don t
Be shy about asking people doing the tour to open doors, flush toilets, etc. Waive like selling your old home before closing Skip the home inspection Skip additional recommended inspections like for or radon Should you buy a house sight unseen
Buying a home sight unseen is risky, even with all the high-tech, digital toys at your disposal. Things like natural lighting, textures, smells, room size and neighborhood sounds are hard if not impossible to get a feel for virtually. In fact, it’s hard to get a feel at all. There’s no reason to buy a house sight unseen if you live in the area, or can easily visit. Most sight unseen buyers are (or even out-of-country) — and they often are operating under a tight timeframe. Or they’re “Investors who are looking for a good deal on a fixer-upper or those who are relocating for work and don’t have time to physically view properties may be well suited to buying a property sight unseen,” says Shaun Martin, owner, and CEO of the Home Buying Company in Denver. Buying foreclosed homes
You may have to purchase unseen if you’re trying to buy a foreclosed house, like a , at auction. While HUD homes can allow a home inspection, you may not have the opportunity to view the property before it comes under the gavel. Even if you could visit, most sold at auction are sold in and may be even auctioned while still occupied, not allowing you to tour the property before you place your bid. This means that you could end up with “significant hidden damage or problems that need to be addressed,” says Martin. “If you can’t afford the risk, consider auctions that may allow you to view the property before bidding,” adds Capozzolo. Final word on buying a home sight unseen
In some ways, putting in an offer on a home sight unseen doesn’t differ much from a home you’ve toured in person. But “you must have the home professionally inspected and consult closely with your real estate agent during the entire transaction,” says Capozzolo. You might get a bargain; your speed and commitment might even impress the seller, making your bid the winning one. But while you’re moving fast, don’t skip certain vital steps. This is one situation where you do not want to waive any in your offer or in the real estate contract. To some extent, buying a home sight unseen is a leap of faith, so do everything you can to avoid a crash landing. SHARE: Rae Hartley Beck is a writer and editor with over eight years of experience in personal finance. Her work has most recently appeared in Bankrate, MoneyWise and Investopedia. Rae specializes in credit card rewards, investing, real estate, home improvement, lending and financial advice for millennials, Gen Z, Gen Alpha and their parents. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Related Articles