Totally-On-Line Home Buying, New Trend or New Normal?

Buying a home sight unseen is nothing new. I’ve sold several homes in the past, to buyers who completed the transaction entirely on-line, by phone and via courier. But in the world of residential Real Estate, that sort of thing has, up until now, been of the ‘few and far between’ variety. Enter Covid 19.

Oddly enough, I have not personally dealt with a totally absent home buyer since this whole quarantine debacle began. Admittedly, I have needed to make an extra effort to meet with several of my Sellers (in person at a safe distance of course), but dealing with a remote Seller is a fairly common occurrence at any time. Industry wide however, sight-unseen home buying seems to be trending. Whereas I might have been somewhat surprised by such a business deal in the past, I feel it is almost the intelligent option right now. Let me stress almost however.

For most buyers a home purchase is still a major investment. Though it’s entirely possible to be more than satisfied, even thrilled with your unseen purchase, it may not be advisable for everyone. After all, there is nothing like the sensation of standing inside of a home and knowing that it just feels right. But current circumstances require us to consider the fact that it can’t always be that way.

Indeed, a sight-unseen transaction is perfectly acceptable and thanks to the boundless nature of technology, pretty straightforward as well. Step one would be a general MLS search, or you can set up a quick and easy custom search in which you are able to ‘favorite’ listings, weed out those that don’t meet your criteria, and save a selection of homes that appeal to you. There are virtual Open Houses, video tours are readily available, appointments to view the home in person can be made on line, or if you prefer, your Realtor can do a virtual walk through with you. All contract preparation and signing is easily and in fact frequently accomplished online. Negotiations and home inspection reviews are a breeze by phone. Even the title companies are already in the habit of accommodating home buyers and sellers remotely.

I can’t say I see fully-sight-unseen home purchases developing into the new normal right away. But I do see it streamlining the process for a larger segment of home buyers and becoming a more common occurrence.

Millennial and GenZ consumers were born to the online world, and the convenience of conducting a connected life is second nature: groceries, clothing, education, cars. So why wouldn’t that naturally extend to home buying?

Is Buying Sight-Unseen the New Real Estate Trend?
By RISMedia Staff

By necessity, due to the coronavirus pandemic, some homebuyers have been purchasing homes sight-unseen. But is this a trend that’s here to stay? According to a new Zillow® survey, 36 percent of Americans say they are more likely to try purchasing a home completely online during the pandemic, while 30 percent say they would do the same even after outbreak ends.

“We didn’t feel safe getting on a plane so having these digital tools on Zillow allowed us to narrow down our search and find the right home for us and our 8-year-old son,” said Jarrod Schwartz, a sales manager, in the report. “After our real estate agent provided a video tour, we had the confidence to make an offer.”

Sellers are feeling the same way. According to Zillow, 43 percent would try to sell their home entirely online during the pandemic, while 33 percent would still do so after the outbreak ends.

And while homebuyers still want to “walk through” the property in some way, according to the survey, one in three consumers would prefer a virtual or video tour over an in-person tour after the outbreak ends.

Agents predict this is a trend that’s here to stay. Of the Zillow Premier Agents who were surveyed, 31 percent anticipate sight-unseen purchasing will stay even once the outbreak is over. During the outbreak, 64 percent have reported fewer in-person showings.

“The home shopping tradition of loading the family into the minivan and touring open houses all weekend may be over,” said Zillow economist Jeff Tucker. “Now shoppers are realizing they can use virtual tours to either skip in-person shopping, or at least to winnow down their options and visit fewer homes in person, making it easier and less time-consuming to find their next home. That speed advantage can give buyers a leg up in today’s fast-moving market. ”

For more information, please visit www.zillow.com. Reprinted with permission from RISMedia. ©2020. All rights reserved.