Buying or renting a residence on sight: is it a good idea? | Business
According to Tracey Cecil-Simpson, a leading agent at Semonin Realtors in Elizabethtown, the trend to buy on sight invisible is becoming increasingly popular for a variety of reasons.
That said, her advice to home buyers after successfully negotiating a sales contract is to take a trip to view the house.
“I encourage them to take the trip and visit the house during the home inspection,” Cecil-Simpson said.
In addition, the entire transaction from applying for a loan, submitting the contract deposit, selecting the property, reviewing the home inspection, requesting necessary repairs, setting up credit accounts. utilities and transaction closing can all be done remotely today. We’re seeing more buyers close remotely, according to Cecil-Simpson.
While our most recent example went well, not all of them do.
It all started with a potential buyer for Hardin County who lived in Germany and the whole transaction was successfully completed remotely. While there were inspection challenges along the way, this was how we could get them the home they wanted and make sure it was ready for them when they arrived.
Some of the reasons a home buyer chooses the sight buying route can be:
1. They want to be ready to move into a house when they arrive.
2. They cannot travel to find accommodation.
3. They have a very high trust relationship with a real estate agent or have a friend in the field.
4. The market is so competitive that the time required for two-way communication makes a contract unlikely.
The latest is the reality in the Hardin County market, now in the second quarter of 2021. We currently have a housing shortage, and when a property hits the market, multiple offers are submitted within hours and often at a price. superior.
Buyers don’t have the luxury of time on their side and sellers have maximum leverage.
These market conditions may not seem fair, but they are the reality of the local housing market.
Under these circumstances, the experience of moving to the area to accept specific jobs or military assignments can be a trying experience for families. The “invisible” buyer will have to continue to act quickly to secure their home due to the minimum number of homes for sale, ”said Cecil-Simpson.
What about renting a house without a view. Each property management office has their policy on how to handle this. Some don’t support the idea at all, some allow it if there is a close friend or family member to view the house for the potential tenant, and some just decide on a case-by-case basis.
The risk to the management company is that if a potential tenant rejects the house on arrival and sees it for the first time, the loss to the tenant is relatively minimal. Still, the management company likely left several strong rental applications and held the property off the market for some time.
In the case of sight rental and sight purchase, a client can expect to sign a specific disclosure or contract amendment detailing the potential drawbacks of unseen sight transactions and potentially large initial non-refundable deposits. .
In summary, with the tools available to realtors and buyers today, virtually every aspect of a structure can be seen in photos, videos, inspection reports, and Google Earth.
That said, an invisible real estate transaction may be the best solution for the buyer who simply cannot come in to view the house but has a qualified real estate agent to guide them through the process.
When making an invisible purchase, my biggest fear is: “Will the house meet their expectations?” Cecil-Simpson said.
TW Shortt is a past president of the Heart of Kentucky Realtors Association and a broker at Realty World Knox Realty Group in Radcliff.