The lack of available homes for sale is creating a sellers’ market, and in some areas generating offers from buyers who haven’t even seen the home on which they are bidding.
Making sense of the story
- Buying homes sight unseen is a small but growing trend in some areas, fueled by the over-competitive market and burgeoning interest by international buyers – and enabled by technological advances.
- Buyers might make offers without seeing a house for several reasons: They live elsewhere or are away for business or personal reasons; they had scheduling conflicts and couldn’t visit before bids were due; they’re investors accustomed to buying just based on property characteristics; or they’re taking a scattershot approach of making lots of offers and seeing which gets accepted.
- Although some buyers are making offers without seeing the properties in person, they’re not going in completely blind. In addition to extensive photos and video tours, plenty of websites offer buyers the opportunity to learn about neighborhoods and schools and research comparable sales.
- Often, those who bid sight unseen have a chance to tour the house during escrow and can still cancel the deal. Some sales, such as courthouse auctions that are the final stage in the foreclosure process, don’t offer a chance to see properties in advance, nor is there an inspection period.
