Buying a home sight-unseen used to be rare – one of those stories you heard through the grapevine, usually involving an eccentric millionaire and an investment home.
However, the practice has become increasingly common as global events and new immersive technologies conspire to catalyze and facilitate the remote buying process.
This article digs deeper into the trend. What are sight-unseen sales, and what implications do they have for real estate consumers and agents?
What Are Sight-Unseen Real Estate Sales?
Essentially, sight-unseen real estate sales are property transactions void of physical interaction. In this way, the term “sight-unseen” is a bit of a misnomer; buyers see the property (usually), just not in person. Instead, they rely on photographs, video conferencing tools and immersive experiences to view the space before purchasing. Likewise, they usually interact digitally with their agent, mortgage broker, notary public, etc.
Why Now?
Remote sales are a direct result of the global pandemic and shifting consumer demographics. As governments enforced stay-at-home restrictions, people sought digital solutions for conducting transactions. Likewise, the pandemic appears to have impacted migration patterns, spurring suburbanization and inter-regional buying. At the same time, millennials, a notoriously digital-savvy cohort, became the leading real estate buyers, bringing along their propensity for online shopping.
This is (to be expected) a bit of a reductionist view, but it gives you a brief idea of the complex societal motivations for the remote buying trend.
Whatever the catalysts, here’s what sight-unseen sales mean for real estate consumers, investors and agents.
Agents Need to Up Their Marketing Game
Photographs have never been more critical. As sight-unseen sales climb, an increasing number of buyers rely on photos for a first – and sometimes only – impression of a property. Ensuring that the pictures are high-quality, well-lit and well-staged is paramount.
Agents also need to pay special attention to their listing description, taking care to include nearby amenities, transport options, schools and “scenes” (bars, restaurants, etc.).
Consumers Need to Vet Their Agents Thoroughly and Cautiously
On the consumer side, if you’re planning to buy sight-unseen, you need to take your due diligence even more seriously when finding an agent. They are your eyes and ears on the ground, and you are entrusting them with the biggest purchase of your life.
Consider using Nobul, a real estate digital marketplace that matches consumers with real estate agents based on your criteria and preferences. As CEO Regan McGee explains to Medium, “Since the start of the pandemic, there has been a huge rise in sight-unseen real estate sales, signaling a huge shift in how people buy and sell property.” He follows: “We’re helping bring more transparency, credibility, and accountability to the single biggest transaction of people’s lives.”
Expect Parallel Trends in Home Showing Technology
As more consumers buy sight-unseen, expect to see parallel trends in home showing technology. Agents agile enough to adopt tools like augmented reality and virtual reality will stand out in the crowded marketplace.
Virtual reality, in particular, is a great way to add value for remote buyers, allowing them immersive interaction with the space before they purchase it. (Until someone invents olfactory technology, they will still rely on agents to tell them how a place smells, though!)
Experts in the industry predict that sight-unseen homebuying is more than a passing trend. As such, agents will need to reorient their efforts and embrace new technologies to remain competitive. Meanwhile, consumers will need to leverage modern real estate marketplaces to ensure they are confident in their representation before taking the leap of faith. (sunnyflowerdelivery.com)
