Owning a property is a significant milestone, and the process usually involves a great deal of planning and research. However, in some cases, you may find yourself considering purchasing a house without viewing it first. While this may seem daunting, it is a practice that is becoming increasingly common, especially in today’s digital age. Steve Waters, Property Solicitor here at Wollens provides you with an extensive guide on how to navigate this process, highlighting the potential risks and strategies to mitigate them, and ensuring you make an informed decision.
Understanding Sight Unseen Purchases
When we refer to buying a house “sight unseen,” we mean purchasing a property without physically touring it first. Instead, you may rely on photographs, video clips, virtual tours, and comprehensive research into the property and its surroundings.
When to Consider Buying a House Without Viewing
There are several situations where you might consider buying a house without viewing it in person. For instance, if you are relocating to a different part of the country or even internationally, it might be challenging or impractical to visit properties in person. You may also consider this option if you’re dealing with a highly competitive housing market and need to act quickly to secure a property. Another case could be if you’re a confident property investor looking to outbid competitors.
When to Exercise Caution
While there may be situations where buying a house without viewing is practical, there are also circ*mstances where you should exercise caution. For example, if you’re a first-time buyer or unfamiliar with the local housing market, it could be riskier to make a sight-unseen purchase. Visiting a property in person can provide valuable insights into the location, the condition of the property, and other factors that may not be apparent through virtual viewing.
Risks Involved
There are several risks associated with buying a house without viewing it first. The primary concern is the unknown property condition. Misrepresentation in online photos and descriptions can also be problematic, potentially leading to unexpected issues post-purchase. Furthermore, unfamiliarity with local housing market dynamics can result in overpayment or missed opportunities.
Strategies to Protect Yourself
To navigate the risks associated with buying a house without viewing, it’s crucial to adopt strategic approaches. Thorough research, utilising technology effectively, enlisting the help of local contacts, and commissioning a comprehensive property survey are just a few ways to safeguard your investment.
Instructing the Right Conveyancer
There really is no substitute to instructing a knowledgeable conveyancer local to the property, who will have experience of dealing with property in the area and will be aware of any quirks of the area such as restrictive covenants, rights of way and historic matters. Their early input and advice may influence a decision to proceed or otherwise and may lead to a saving of legal fees were the matter to become abortive at a late stage. In some circ*mstances a buyer may even find a local conveyancer that has acted on a sale or purchase of the same property previously.
The Role of a Skilled Real Estate Agent
One of the most critical steps when buying a house sight unseen is choosing a reliable and experienced real estate agent. Your agent will be your boots on the ground, providing you with detailed local information, conducting video tours, and helping calculate the risks associated with the property. It’s essential to find an agent who is tech-savvy, knowledgeable about the local market and comfortable with negotiation.
Mortgage Preapproval: An Essential Step
Mortgage preapproval is an essential step in the home buying process, whether you’re buying a house sight unseen or not. Preapproval can help you shop for homes within your price range and show sellers that you’re a serious buyer. This can be particularly advantageous in a competitive market.
Virtual Property Tours: A Game Changer
Thanks to advancements in technology, virtual property tours have become a game-changer in the real estate industry. They allow you to have an interactive experience while touring the property from the comfort of your own home. However, it’s crucial to remember that no matter how high-quality the virtual tour is, it can’t fully replicate the experience of physically being in the property.
The Importance of Thorough Home Inspections
Whether you’re buying sight unseen or not, it’s always advisable to get a thorough home inspection. This can help uncover potential issues with the property that might not be visible in photos or during a virtual tour. If you can’t attend the inspection in person, consider setting up a video call with the inspector during the examination.
Making an Offer on a Sight Unseen Property
Once you’re satisfied with the property’s condition based on the information available, you can proceed to make an offer. This process is similar to a traditional property purchase, but it’s crucial to rely on contingencies that require specific criteria to be met before finalising the deal.
Exchanging Contracts
Once all inspections, searches and enquiries have been completed to the satisfaction of your conveyancer and your lender and the contract has been agreed, you’re ready to exchange contracts. This could be done virtually, with the necessary documents being signed and exchanged electronically.
