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Home buyers who have made a bid on a home without seeing it in person has risen 28% since 2019 to 45%, according to a Redfin survey. COVID-19, accelerating migration trends, and an increasingly competitive market caused by the housing shortage are each reasons why buyers take the risk of bidding on a home before physically touring it.
The Coronavirus has changed the housing market in many ways. Another Redfin survey found that 18% of people looking to buy a home are only looking virtually. Real estate agents have been forced to become more creative with their listings with fewer in person tours. Video tours led by agents and 3D walk-throughs are two of the methods that agents are increasingly implementing. Technological advancements help home buyers feel comfortable to submit sight-unseen offers, especially millennials, according to an article published by First Bank Mortgage.
“Real estate sales are continuing during the global pandemic as the use of virtual tools is giving buyers a feel for homes—so much so that they’re willing to put in an offer without physically stepping inside” (REALTOR Magazine).
Not only has COVID-19 pushed more people to look at homes virtually, it has also dropped mortgage rates to record lows and inspired more potential home buyers to look into the already competitive market. With fewer homes on the market, and more buyers, many offers are forced into bidding wars. Getting an offer in ASAP is key.
While technology has helped potential home buyers feel confident in making sight-unseen offers, First Bank Mortgage has made a list of 6 ways to reduce the risk:
1. Get pre-approved for a mortgage
2. Set and stick to a budget
3. Do your research, and make an informed decision
4. Be aware that photos can be strategically captured, edited, and selected to make a space seem different than it actually is
5. Enlist a professional realtor or appraiser
6. Include contingencies in the contract
While these tips can reduce the risk of sight-unseen offers, seeing a home in person is still the best option, when possible.
If you are currently looking to buy a home, don’t let the excitement stop you from thinking clearly. Take as many precautions as you can to protect yourself financially. Good luck out there!
- Ashley Jorgensen
Sources:
Redfin
First Bank Mortgage
REALTOR Magazine
Photo by Ante Hamersmit on Unsplash
Great tips!