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The big risks in buying a house sight unseen

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Patchogue, NY: Contracted home for sale on May 17, 2022, on Center Street in Patchogue, NY.

Steve Fost | Newsday | Getty Images

In many parts of the country, homes continue to sell, despite rising mortgage rates, high prices, and concerns about a recession pervading the economy. The urgent feeling that many potential buyers will act during the recent real estate boom means making the sight of the offer invisible.

According to LendingTree, nearly half (47%) of homebuyers have offered offers in the last two years without actually visiting the property.

Adam Lampe, Co-Founder and Chief Executive Officer of Mint Wealth Management in Houston, Texas, said:

While the housing market is chilling, it’s still a seller’s market, and buying an invisible sight can be a viable strategy. Here are four warnings.

1. Don’t make a decision right away

It’s a challenge when you’ve lost some homes and are starting to feel desperate. And it can be even more annoying when others are willing to get cash with little or no conditions.

In particular, according to the National Association of Real Estate Agents, 25% of May transactions were US cash sales. This is down from 26% in April, but up from 23% in May 2021.

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But that’s not a good idea just because others are “focusing on the wind,” said Connor Daniels, a realtor in Olathe, Kansas. He tells clients to plan to miss at least 5 to 10 homes and strongly advises not to buy invisible real estate sights, even to close a deal. “If you say it well, photos can make a rough house look really nice,” he said.

If you plan to buy invisible vision, you need to mitigate the risk by at least having someone else do the walkthrough on your behalf, said Delegate Advisors, CEO of financial planning firm. Andy Hart says. It’s also a good idea to claim an inspection and make sure that appropriate contingencies have occurred in case you need or need to cancel.

2. Know what you are working on

Calculations may vary depending on the property you are considering.

“If you were buying a rent or flip for $ 50,000 and you had that money, that would be one thing,” Daniels said. But spending hundreds of thousands on a house that plans to live without homework is “crazy,” he said.

Another exception is if you are in a new market. Cameron Burskey, Managing Director of Retirement Security at Cornerstone Financial Services in Southfield, Mississippi, said:

“It should make you feel more comfortable if you buy an invisible sight,” he said.

3. Send a trusted expert, family or friend on your behalf

“People you can trust need to look at your home before you buy,” Barsky said. This could be a friend, family member, contractor, inspector, or even a real estate agent.

Daniels has done this several times for his clients. A couple he recently worked with did not see their new home in person until a few weeks after the store closed. But to give the couple a real sense of what the house looked like before they made an offer, he Face Timed with them while doing a thorough walkthrough. In this way, he said, they were relieved that they were not directly there and could act swiftly.

4. Do not pass the inspection

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