Despite paying the big bucks, luxury home buyers in the U.S. were more likely to have bid on a house sight unseen, according to a survey Redfin published Wednesday.
The brokerage and listing website surveyed 1,285 Americans who bought a home in the past year, and found that the more a buyer paid, the more likely they were to have made an offer without stepping foot on the property first.
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More than half, 58%, of respondents who bought a home for $1 million or more said they bid on a house sight unseen at some point during the house hunt. That figure was much lower for affordable home buyers. Only one in five people who bought a house for $250,000 or less made an offer without seeing the house first.
On average, the survey found that one in three people who bought a house in the last year made an offer without seeing the property first; that’s a major increase from the 19% Redfin found last year. Aside from luxury home buyers, Nela Richardson, Redfin’s chief economist, attributed the jump to more millennials in the marketplace.
"Millennials are already starting to set trends in the real estate industry," Ms. Richardson said. "They are three times more likely than Baby Boomers to make an offer sight unseen, and they’re more likely than older buyers and sellers to negotiate commission savings."
Given the volatile political climate, Redfin also inquired about how politics affect real estate decisions.
What does loyalty to a developer net you? The best price, pick of inventory & return on investment https://t.co/FX0Qaym1sB pic.twitter.com/UYEt7krzJG
— Mansion Global (@MansionGlobal) June 26, 2017
The survey found that luxury buyers were the least willing to live near people of opposing political views. About half, or 49%, of people who bought homes for $1 million or more said they were hesitant to move to an area where most of the residents do not share their political views; 42% said they were neutral on the issue, according to Redfin.
Politics were less of a concern for affordable home buyers—38% of people who bought a house under $500,000 said they were hesitant to move to an area of opposing political views.