The world of real estate has transformed dramatically in recent years, with technological advancements enabling buyers to purchase properties without ever setting foot in them. This practice, known as “sight-unseen” buying, gained momentum during the COVID-19 pandemic and continues to be a viable option for many. While this approach offers convenience and speed, it also comes with inherent risks. Eric Sanders, a respected real estate attorney based in Chicago, examines the pros and cons of closing on a property sight-unseen and shares tips to navigate this modern trend wisely.
The Appeal of Sight-Unseen Closings
Sight-unseen property transactions appeal to a wide range of buyers, including those relocating to new cities, investors seeking lucrative opportunities, and buyers facing competitive markets where properties sell quickly. Sanders identifies several benefits that make this approach attractive:
1. Time Efficiency
For buyers relocating from out of state or overseas, visiting properties in person can be time-consuming and expensive. Closing sight-unseen allows them to move quickly, especially in fast-paced markets.
2. Access to Remote Opportunities
The ability to buy sight-unseen expands options for buyers who want to invest in markets outside their immediate vicinity. With tools like virtual tours, online listings, and drone footage, buyers can explore properties remotely.
3. Competitive Edge
In hot markets where bidding wars are common, acting quickly can make all the difference. Sight-unseen offers enable buyers to secure properties before others have a chance to visit.
The Risks of Sight-Unseen Closings
While the convenience is undeniable, Sanders cautions that buying a property without seeing it firsthand comes with risks that shouldn’t be overlooked:
1. Undisclosed Issues
Photos and virtual tours may not capture every detail. Structural problems, neighborhood conditions, or issues with plumbing and electrical systems could go unnoticed until after closing.
2. Emotional Disconnect
A home is more than just a physical space; it’s a place where buyers need to feel comfortable. Without visiting in person, it’s hard to gauge whether a property truly suits one’s lifestyle and preferences.
3. Overpaying for the Property
Without an in-person visit, buyers might overestimate the value of a property based on its online presentation. Sanders warns that professional staging can sometimes create a misleading impression.
4. Legal and Contractual Pitfalls
Real estate transactions involve complex contracts, and sight-unseen deals can heighten the risk of overlooking critical details. Issues with zoning, permits, or easements may not be evident without thorough due diligence.
Tips for Minimizing Risks in Sight-Unseen Transactions
Eric Sanders emphasizes the importance of strategic planning and expert guidance to mitigate risks. Here are his top recommendations:
1. Work with Trusted Professionals
Engage a local real estate agent who understands the market and can provide honest assessments. An experienced attorney like Sanders can review contracts and ensure all legal aspects are addressed.
2. Invest in a Detailed Home Inspection
A professional home inspection is essential for identifying potential issues. Request a comprehensive report and consider including contingencies in the contract to address any problems.
3. Leverage Technology
Utilize virtual tours, video walkthroughs, and live video calls to get a closer look at the property. Ask for additional footage or photos of specific areas to ensure transparency.
4. Research the Neighborhood
Understanding the surrounding area is just as important as evaluating the property itself. Use online resources to check crime rates, school ratings, and proximity to amenities.
5. Include Escape Clauses
To protect yourself, include contingencies in your purchase agreement that allow you to back out if the property doesn’t meet expectations upon further review or inspection.
The Role of Legal Expertise
Sanders underscores the importance of having a knowledgeable real estate attorney involved in sight-unseen transactions. “An attorney can provide the oversight needed to ensure that every aspect of the deal aligns with your best interests,” he explains. From reviewing the purchase agreement to addressing title concerns, an attorney’s guidance can prevent costly mistakes.
Closing on a property sight-unseen offers undeniable advantages for certain buyers, but it’s not without its challenges. Eric Sanders Attorney in Chicago emphasizes the need for careful planning, thorough research, and professional support to navigate this modern trend successfully.
“Buying sight-unseen can be a strategic move,” says Sanders, “but it requires diligence and the right team of experts to ensure a positive outcome.” Whether you’re an investor seeking remote opportunities or a buyer relocating across the country, understanding the risks and benefits is key to making informed decisions in today’s real estate market.