Previous generations of buyers might never have considered buying homes sight unseen. But this practice has become commonplace in the 2020s. CNBC reports that 47% of buyers who’ve purchased in the past two years made an offer on a home without physically touring the property. That’s right — nearly half of recent buyers were prepared to buy a home without stepping foot inside it first!
The trend of buying homes sight unseen deserves a closer look. As a real estate professional, you need to understand why your clients are willing to buy sight unseen. And you need to know how best to serve these buyers to give them a seamless buying experience.
Here’s what real estate agents need to know about buying homes sight unseen.
Why Buyers are Buying Homes Sight Unseen
There are several reasons that buying homes sight unseen is on the rise.
First, the amount and quality of data available online allow buyers to get the feel of a property without physically visiting it. Virtual tours, for example, allow buyers to experience homes in 3D through a series of panoramic photos. Viewers can pan 360 degrees around each room and navigate through the house as if they were there. This dramatically increases buyer confidence in purchasing sight unseen.
Secondly, the COVID-19 pandemic forced buyers (and agents!) to get more comfortable with the idea of buying sight unseen. In 2020, COVID forced several real estate marketing changes, including regulations about showing homes in person. Some states, like Pennsylvania, even declared real estate agents as “non-essential” for a short time. This prohibited agents from meeting clients face-to-face to tour properties. Buyers and agents worked together to keep the industry going without in-person home tours.
Then the market took off! With interest rates at historic lows, buyers flocked to purchase homes. The hot seller’s market was characterized by multiple offers and bidding wars. This heavy buyer competition future increased willingness to buy sight unseen. Buyers understood the need to make an offer immediately if they were serious about a home.
And lastly, the increase in remote work opportunities has led to an increase in long-distance moves. Out-of-area buyers are often geographically prevented from touring homes in person. Traveling for a house-hunting trip may be cost-prohibitive. And moving into temporary local housing to house hunt in person would require moving twice.
5 Ways to Assist Clients in Buying Homes Sight Unseen
Here are a few key things you can do to increase sight-unseen sales and serve your buyers.
1. Invest in Relevant Proptech
Proptech can help real estate professionals boost business while better serving remote buyers. Property technology can be used to facilitate virtual showings, digitally stage vacant homes, and maintain communication with your out-of-area clients.
2. Make Sure Your Listings are Accurate and Up-to-Date
Accurate and up-to-date listings are critical for maintaining buyer confidence. When buyers know they can trust the information they see online, they feel more comfortable making decisions without being physically present.
3. Offer Live Virtual Showings
Posting a virtual tour with your listing will certainly help buyers understand the property, but many buyers will want a more custom experience. Live virtual showings can be conducted through any video call app; you simply walk your clients through the house via smartphone. This allows clients to ask questions and get answers in real-time, just like a live, in-person showing!
4. Upgrade Your Web Presence
Out-of-area buyers will be doing lots of research online. So if you want them to find you, you need to be online. Use your website to post information on your city as well as your listings. Include neighborhood tours to help out-of-towners decide which area is right for them. By increasing the local content on your site, you give search engines more relevant information, which makes them more likely to send traffic to your site!
5. Understand How Remote Closings Work in Your State
Your buyers might still be out of the area when the closing date rolls around, so you need to know how buyers can close remotely. Most states now accept Remote Online Notaries (RON) for real estate closings. But you should check with your state board to make sure you understand how the process works so that you can prepare your buyers.
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Updated 10/24/22