Would you buy a pair of shoes before trying them on first? Probably not. Would you buy a home without seeing it in person first? It might sound like a bad idea to buy a home “sight unseen” but in today’s competitive market, it’s becoming more common.
But what does “sight unseen” really mean? And how can you safely buy a house sight unseen?
Here’s everything you need to know about buying a house sight unseen.
What Does Buying a House Sight Unseen Mean?
As the name suggests, “sight unseen” means you are buying the home without actually setting foot on the property or seeing it in person. It might sound like a risky idea, but for many homebuyers, buying a house sight unseen actually works better!
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Why Would Someone Buy a House Sight Unseen?
There are many reasons why someone would want to buy a house sight unseen. Some of the most common reasons this would work for someone could be:
- If you are purchasing a home from out of province or out of the country and you aren’t able to schedule an in-person visit.
- You have had your eye on a property for a while, and it just so happens to hit the market when you are out of town and the timing isn’t right.
- The seller is working with a tight deadline and you aren’t able to make time to view the home in person.
- Reasons out of your control, for example, a global pandemic. (Virtual tours were often necessary during the lockdowns of 2020 and 2021.)
What are the Benefits of Buying Sight Unseen?
For some, buying a home sight unseen might seem like a bad move. After all, this is a huge investment that you might want to inspect in person before committing to buying. However, there are a couple of key benefits to buying sight unseen. For example:
You Want to Get an Offer in ASAP
In a competitive market, timing is everything. If the home in question is already one that checks all the boxes, submitting an offer sight unseen might be a great way to get ahead of the competition.
You Have an Extra Busy Life
Between work and family commitments, things can get busy. We get it. We all experience it at some point. If you are a really busy person and scheduling time in your calendar is already a challenge, buying a home sight unseen might take away some of the limits for you when it comes to house hunting.
Planning to buy soon? Read our blog to find out everything you need to know about making an offer on a house here.
Is there a Downside to Buying Sight Unseen?
So we’ve talked about some of the pros of buying a home sight unseen, and now we have to cover a few of the cons.
For starters, buying a home sight unseen could open you up to more risk. Relying only on pictures might not tell the real story of the home. Remember, listing photos are designed to show the home in its best light.
You also might end up paying more. Putting in a sight unseen offer can seem like an aggressive move, and if you’re motivated to buy the house without seeing it, sellers might be more inclined to negotiate for more.
How to Buy a House Sight Unseen with Less Risk
There are several things you can do to safeguard yourself and get the best results from your sight unseen offer. Firstly, try working with a local real estate agent. Although real estate agents are not home inspectors, they are experienced in spotting problem areas.
Working with an experienced local agent will give you a representative in the area who can act on your behalf, visit the home, and advise you responsibly. They can even schedule a virtual tour with you, so you can at least tour the property in some capacity if you aren’t able to make it there in person.
An experienced local real estate agent can also help you craft a compelling offer that will appeal to the seller without leaving too much on the table.
A real estate professional can also help you navigate all the essential real estate forms. Read more about the most common forms here.
Conditions are Your Friend with a Sight Unseen Offer
Conditional offers are a great way to limit the risk involved with a sight unseen offer. The two conditions we would recommend with these types of offers would be:
Conditional on Home Inspection
If you aren’t able to see the property in person, it’s a good idea to get the home inspected before purchasing.
Conditional on Walk-Through
This contingency basically means that you intend to eventually visit the property before the deal is complete.
Conditions are key when submitting a sight unseen offer because they give you an out if you change your mind or discover something unfavourable about the property.
What does it mean when a house is sold ‘over asking’ read our blog here to find out!
2 Things to Watch Out for when Buying a Home Sight Unseen
Buying a home sight unseen can be a great option for the right person. And when you know your options for protecting your interests, you can do so relatively quickly and with little risk involved. However, there are a couple things you should watch out for if you are planning to submit a sight unseen offer:
- You might have to pay more or make compromises. Sellers are more likely to try and negotiate with sight unseen offers. In some cases, they may try to negotiate a higher price or fewer conditions. It’s important to have an understanding of what’s involved in the offer and the advice of a professional to guide you through the transaction successfully.
- Don’t submit and back out too many times. While submitting a conditional sight unseen offer might seem like a no-risk way to get a home in a busy Seller’s Market, you don’t want to gain the reputation of someone who just offers and then backs out. If listing agents begin to know you as the person who is always backing out of deals, they might advise their clients not to work with you. Remember, a listing agent is responsible for the best interest of their clients.
Before trying to buy a home sight unseen, it’s important to consider the pros and cons of the process. Are you willing to take a risk? Are you doing this because of a big change in your life? And are you ready to work with an experienced local real estate to make sure everything goes smoothly?
Looking for high-quality Hamilton, Ontario real estate agents? Contact the team at Michael St. Jean Realty today. Call us at 1-844-484-SOLD or email us here to get started.
