Many home buyers these days have to move quickly. That’s because demand outweighs supply, and appealing lake homes that hit the market often generate bidding wars and sell fast in East Tennessee. Some buyers eager to move fast will buy a home ‘sight unseen,’ without ever touring the place in person.
This can be a good strategy in a competitive real estate market. But sight-unseen homes aren’t without risk. Here’s what you should know before making an offer.
What does it mean to buy a house ‘sight unseen’?
Purchasing a home ‘sight unseen’ means buying it without having toured the property in person first. Typically, someone buying a home sight-unseen will have looked at pictures and videos online and likely taken a virtual tour.
According to recent research by Redfin, a surprising 63% of those who purchased a home in 2020 made an offer on a property they hadn’t viewed in person.
Why remote home buying is increasing
There are several reasons why more buyers are opting to purchase a home sight unseen lately.
With a large segment of our East Tennessee lake home buyers relocating from out of state, it’s not uncommon that the buyer doesn’t view the home in person until the inspection or even the closing table.
The market has changed. People need to move quickly, and touring a home in person before an offer may not be possible. In hot markets like we have on our Tennessee lakes, you must submit offers in hours, not days.
Today, photos and videos are of better quality. And a smart buyer should be able to rely on a lake specialist agent or broker to act as their eyes, ears, nose, and fiduciary.
Is buying a home sight unseen a bad idea?
“Most people end up visiting a home multiple times during the purchase phase. This can cost a lot of money if you are having to travel out of state to tour the home,” says Nathaniel Hovsepian investor and owner of The Expert Home Buyers.
On the other hand, with a sight-unseen offer, you won’t have the benefit of previewing the property in person. You’ll have to rely on photos, video, virtual tours, and the descriptions and opinions provided by your real estate agent and home inspector.
“There is great risk in failing to see defects to the property with a sight-unseen purchase, particularly if you choose not to have the home professionally inspected.”
Even when you’re in a rush, real estate experts recommend getting a lake home inspection to make sure there aren’t any major issues the seller neglected to disclose. An inspection is your one chance to request the seller to cover repair costs — or walk away if the problem is a deal-breaker.
Precaution’s to take with sight unseen homes
Again, there are risks involved with committing to a sight-unseen home. To minimize these risks, it pays to take special precautions.
Try to have someone you trust at least drive-by the home and take fresh videos and pictures so that you know what you are getting. It’s possible that these images may more accurately reflect the property’s current condition than the images displayed on a website.
Additionally, consider placing a home inspection contingency in your offer. A buyer does not have a trained eye to notice or even look for issues and concerns with a home. It’s always prudent to have the property professionally inspected, whether or not the buyer did a walk-through or simply viewed pictures and video before making the offer.
Also — using your agent as your representative — be sure to ask about any aspects you aren’t sure about based on the listing photos and video tours; including home features, layout, waterfront location, design aspects, dock condition, or potential renovations.
It’s important to keep in mind the risks of buying a home ‘sight unseen’:.
- Location Matters: Lake homes have specific qualities to look out for when it comes to location. You need to know things like the proximity to the lake and whether it’s a lake view, lakefront, or lake access property. Event the neighborhood the home is located in is very important to the proeprty.
- Photos Oversell: With the right photos, any home can look flawless. The only way to get a solid feel of what the home is like is to visit it in person.
- Lake Access: Depending on angles and lighting, the ‘lakefront’ home you were expecting could actually be water access. Variables like the season and time of day can also make determining this more difficult without seeing it in person.
- Contingency Games: Sellers are becoming more aware of the contingency games buyers may play because they are putting an offer on a home ‘sight unseen’. Participating in these games could lead to your offer being disregarded, or a home with problems you weren’t aware of.
Agents and brokers representing sellers are educating their clients on the dangers of sight unseen offers as well! Rarely do agents entertain or encourage sellers to accept sight unseen offers in the fear that buyers could back out if the home or location doesn’t meet expectations.
It can seem impossible to secure a home when it feels like nothing stays on the market long enough for you to even consider it an option. However, the benefit of touring a home in person can worth the wait in some cases. Talk to your lake specialist to determine the best option for making an offer on your dream property.
Excepts from The Mortgage Repost.
Posted by Jack Vincent, Lakefront Living, On The Lake Realty