Should You Buy a Home Sight Unseen?
You might not have a choice. Ideally, you never would, but what if you can’t avoid it? Take the case of a California woman relocating to Ohio with little time to spare. Or, until the recent housing market downturn, Florida home loan shoppers who want to snatch up a great bargain before someone else. To address this concern, we turn it over to Bankrate.com real estate advisor Steve McLinden, who urges caution but is not pessimistic.
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While sight-unseen home purchases can work out just fine, make no mistake, you’re flying blind. Such deals are more common than ever, particularly among out-of-town investors, according to industry analysts. The risks inherent in these types of purchases are far greater than in buying a home which you’ve personally scrutinized. Sight unseen, you are relying almost exclusively on the honesty and forthrightness of:
- Your real estate agent.
- The marketing literature.
- Some digital pictures.
- Maps and satellite images.
In such situations, it is strongly advised that you do not use the seller’s agent, as they have the seller’s best interests in mind, contractually. If the agent in charge of the home you are currently selling can refer you to a relocation specialist in the area you’re moving to, or you can find out a little bit about agents on your own via the web, do so immediately. Get as much as you can for yourself if you don’t have a personal referral.
To the extent that you can, be very clear with the agent what type of house and amenities you’re looking for, and request the necessary information on schools, commuting, recreation, taxes, energy costs, et cetera. As well as anything else that will affect your quality of living or that is of major importance to you. You should also be prepared to use the following couple of safety nets to your list to better your odds of satisfaction:
- No matter how tight your budget might be, hire a home inspector to give the place a thorough examination. You can’t afford not to.
- Insist on a contingency in the sales contract that allows you to do a final (or in this case, initial) walk-through in the empty house before you agree to sign the papers at closing. The reason? Furnishings and other household items often obscure defects from agents and even inspectors. You, too, will be unaware of them, especially if you’re only looking at pictures online.
Of course, it’s still less than ideal, even if things go according to plan. You can get a nice property at a good price, but you still might like it. A loud level of noise or a certain neighborhood culture, to use a few common examples, are things you can only experience first-hand, and perhaps over a good length of time. So be prepared to get a feel for your new home on the fly… and for possible disappointments. Nevertheless, you can escape the major drawbacks and financial pitfalls if you’re smart and avoid mistakes!
