A Record Number of Sight Unseen Home Purchases

Sight Unseen Home Purchases
High competition for housing is causing an increase in sight unseen home purchases.

The housing market of the past few years has reached competitive levels that we have not seen in many years. A persistently limited inventory of homes for sale combined with rapidly rising prices resulted in buyers acting swiftly in order to compete for homes. Throughout South Florida, we have also seen a record number of Americans relocating to our area. This has certainly made the market even more competitive. Recently, LendingTree.com surveyed more than 1,000 homeowners about their buying experiences. Interestingly, they found that almost half of recent home buyers purchased their homes sight unseen. We share some of these findings below. To view the full report, click here.

Key Findings

  • 47% of homeowners that purchased a home within the past 2 years made an offer without physically touring the property. (This is about double the rate that we have seen in the past.)
  • Among homeowners living in a sight unseen home, 30% admit that it was not their first choice home.
  • 24% of homeowners paid above asking price for their home.
  • 36% of recent home buyers plan to move within the next five years.
  • 85% of homeowners believe that owning a home is more affordable than renting.

Summary

Typically, buying a home sight unseen is not advisable. However, given the recent South Florida housing market dynamics, it has become a highly adopted strategy. For example, it has been quite common for a new listing to receive multiple offers within the first day of going on the market. With many likely buyers being located out of the state, a sight unseen offer may be the only realistic option at securing the property under contract. We typically advise our buyer clients to employ this strategy in order to get a property under contract. With this said, the buyer should also have an inspection period as part of the contract. Therefore, we highly recommend viewing the property during this inspection period while also hiring a reputable home inspector to evaluate the property. In the event that there are unforeseen issues with the home, the buyer may still cancel the contract as long as it is within the inspection period reflected in the purchase contract. In this case, the buyer would have his/her real estate agent draft a “release and cancellation of contract”. Do you have any real estate needs in South Florida? Contact Natasha at Live South Florida Realty, Inc. today!

At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our trusted “Florida Home Search” app is available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.

Leave a comment

Your email address will not be published.