Buying a House Sight Unseen: A Data-Driven Guide to Remote Real Estate

The way Americans buy homes has fundamentally shifted, with a majority of recent purchasers making an offer on a property they had never visited in person. According to a late-2020 survey of over 1,900 buyers across 32 major markets, 63% of people who bought a home made a sight-unseen offer, a significant increase from 32% the previous year. This trend, fueled by remote work and advanced technology, means understanding the virtual homebuying process is essential.

What is Driving the Rise in Sight-Unseen Home Purchases?

Two primary factors are accelerating this trend: widespread migration and the rapid adoption of real estate technology. With remote work becoming more common, a record 27.8% of home searchers were looking to relocate in 2020. This geographic displacement makes in-person tours impractical. Simultaneously, technological tools have evolved to fill the gap. Video tours with real estate agents have surged from less than 1% of tour requests to about 10% within a year. Similarly, monthly views of 3D walkthroughs—interactive digital models of a home—have increased by over 500%. These tools provide a more immersive experience than static photographs, allowing buyers to explore a property remotely with greater confidence.

How Do Virtual Tours and 3D Walkthroughs Work?

Virtual home tours generally fall into two categories, each serving a distinct purpose. A 3D Walkthrough is a pre-recorded, computer-generated model of the home that users can navigate at their own pace on a listing website. It provides a comprehensive overview of the property's layout. In contrast, a Live-Video Tour is conducted in real-time by a real estate agent using a smartphone or tablet via an app like Google Duo or FaceTime. This method is interactive; the buyer can ask the agent to zoom in on specific details, such as a crack in the plaster or the condition of appliances. As one Redfin agent notes, the live tour allows her to describe peculiar details, creating an experience that is "like they are actually there with me."

What Are the Critical Steps for a Safe Sight-Unseen Purchase?

While technology facilitates remote buying, a successful transaction hinges on rigorous due diligence. Based on industry experience, the following steps are non-negotiable for mitigating risk:

1. Maximize Virtual Viewing: Don't rely on a single video tour. Scrutinize the 3D walkthrough multiple times and schedule a second live tour to ask detailed questions.
2. Hire a Local Expert: A knowledgeable local agent is invaluable for assessing the neighborhood, understanding market values, and identifying potential red flags that aren't apparent online.
3. Never Waive the Inspection Contingency: This is the most critical safeguard. An inspection contingency is a clause in the purchase contract that allows the buyer to have the home professionally inspected and to renegotiate or withdraw the offer based on the findings without losing their earnest money deposit. Even buyers who complete a purchase remotely should always attend the inspection in person if possible.
4. Review All Disclosures Thoroughly: Sellers are required to provide property disclosures about known issues. Review these documents meticulously with your agent.

The following data illustrates the rapid growth of this trend:

Is Buying a Home Sight Unseen the New Normal?

Industry leaders believe the virtual home tour is a permanent fixture. "The virtual home tour is here to stay," stated Redfin's chief economist, predicting that the majority of homebuyers will make sight-unseen offers in 2021. The convenience for out-of-town buyers and the effectiveness of the technology ensure its continued use. However, this does not eliminate the need for physical verification.

In conclusion, while buying a house sight-unseen is more feasible than ever, it requires a disciplined approach. Leverage technology for viewing, but always protect your investment with a local agent's expertise and crucial contract contingencies, especially the professional home inspection.