What To Know Before Buying A House Sight Unseen

At first it may sound risky to make an offer sight unseen. How could you make the biggest purchase of your life without seeing the property in person?

But buying a house sight unseen isn’t careless if you take precautions. Let’s first define “sight unseen” and then look at both sides of the coin.

What Does Sight Unseen Mean?

Buying a house sight unseen means you purchase a home without setting foot in or on the property first.

That doesn’t mean you don’t know what the house looks like, though. You may have searched the property’s listing online to view pictures, study specs, learn details of the house and assess the surrounding neighborhood.

Scenarios When A Sight-Unseen Offer Makes Sense

Does a home check all your boxes? Is it impossible for you to tour it before it gets snatched up? Then it may be time to consider putting in an offer before you walk through the front door. In the following instances, buying a house sight unseen could be a preferred strategy:

• You need to buy a home out of state.
• Your dream home hits the market when you’re out of town.
• The seller sets a tight deadline to receive offers.
• Homes are vanishing quickly in a competitive housing market.

The Pros Of Buying A House Sight Unseen

Now that we’ve explored situations when you might prefer to buy a house sight unseen, let’s look at some advantages of doing so:

• You can beat the crowd. In a seller’s market, offers come in fast and furious as soon as a listing appears. Skipping a tour is one way to get your offer in as soon as possible and improve your chances at securing your dream property.
• You aren’t boxed in by your schedule. If you don’t have time to make it to multiple showings every week, you might miss out on many promising homes. When you bypass all the hours spent driving and looking at homes in person, you have more time to assess your options.

The Cons Of Buying A House Sight Unseen

You might be tempted to fire off offers as soon as you see a few photos you like. But this can get you in trouble if you take it too far. Below are some drawbacks to buying a home sight unseen:

• Sellers may shy away from contingencies. A buyer who hasn’t visited a home is more likely to have second thoughts down the road. And if that happens, a seller loses precious days for their house to be on the market. That’s why many sellers’ agents are on guard for sight-unseen offers and may advise their clients to skip over contingencies.
• You might be expected to pay more. While not every seller will avoid contingency-heavy offers, many will expect more money to compensate for the risk. Keep your offer within your budget, but be aware that you might need to up the number.
• You might need to make some concessions. Some sellers will play ball if you meet them halfway. This might mean scaling back your contingencies, either by reducing how much you’re protected or how much time you have to pull an offer. It’s perfectly reasonable to negotiate, but make sure you have enough time to examine a home inspector’s findings and proceed accordingly.

Tips For Buying A House Sight Unseen

Here are a few steps you can take to successfully make a sight-unseen home purchase:

• Send a trusted representative for the final walk-through. A sibling or close friend could do in a pinch, but typically this means a buyer’s agent. Your agent should know what you’re looking for and how to spot obvious problems, like leaks or mold.
• Hire an experienced real estate agent. An agent with experience in sight-unseen real estate transactions will know how to advise you before you make an offer. Agents can also provide insights about the home by conducting a virtual tour or walk-through via FaceTime or video recording, provided the seller grants permission.
• Choose your home inspector carefully. If you’re unable to tour the home in person, a detailed home inspection report is essential. Find a home inspector who’ll meticulously assess the home and its major systems, including plumbing, electrical, heating and air conditioning.
• Protect yourself with an inspection contingency. This allows you to ask for more time, negotiate repairs or back out of a purchase agreement based on the home inspector’s findings.
• Consider getting a walk-through contingency. This ensures that you’ll eventually be able to walk through the home and have the final say before closing.

The Bottom Line

Depending on your situation and market conditions, making an offer on a home sight unseen might be your best option for homeownership. It’s important to remember that as long as you include the proper contingencies and are represented by a professional buyer’s agent, buying sight unseen is a viable option.

Are you ready to make an offer on a home sight unseen? Start the approval process today with Rocket Mortgage^®!