U.S. buyers of high-end homes are almost twice as likely to bid on a property before seeing it in person than the buyer of an average house, a new survey released Tuesday finds.
Among buyers of homes worth more than $750,000, 39% made an offer without visiting the properties first in the past year, compared with 19% of those who bought a residence in any price, according to a poll of more than 2,000 buyers and sellers conducted by SurveyMonkey Audience and commissioned by Redfin.
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Bidding wars and fast home-selling speeds are driving the trend, Redfin said. Another key factor: the increased use of technology in residential real estate, including apps, 3D photos and live video.
Karla Kirkpatrick-Adams, a Redfin agent, said that a client of hers from Alaska recently bought a condo in a high rise in downtown Denver without seeing it in person until after closing.
"We did a video tour the day the condo hit the market," Ms. Kirkpatrick-Adams said. "Given his location and the speed of the market in Denver, a sight-unseen offer was the only option to buy the home before it went under contract."
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The agent said that the apartment carried minimal risk for his client because it was in a building with a solid reputation; buying a single-family home, on the other hand, has the potential for latent defects and other issues.
Still, there are steps buyers can take before bidding for a property they fall in love with through photos or video. Redfin recommends:
Hiring a real estate agent whom you trust and communicate well with. Having a trusted friend or family member see the home for you, if possible. Asking your agent to point out aspects and features of the home that aren’t easily captured in photographs. Including inspection and other contingencies in your offer. Using video technology to stream and record home tours and the inspection.