How to Buy a House Virtually

In the era of persistent social distancing, the real estate landscape has adapted to unprecedented challenges, with sellers listing their homes and buyers making crucial decisions without ever setting foot inside a property. This trend is particularly noticeable among those relocating from out of town, reflecting a significant shift in the way real estate transactions are conducted. According to a survey conducted by the National Association of Realtors (NAR), 1 out of 4 agents reported that at least one of their clients placed a home under contract without physically visiting it.

Despite the limitations imposed by social distancing, buyers are not shying away from the market. The NAR survey revealed that clients, on average, toured three homes, either in person or virtually, before making an offer. This contrasts sharply with the previous year’s trend, where buyers visited a minimum of nine homes before finalizing a purchase, as outlined in NAR’s 2019 Profile of Home Buyers and Sellers report.

Interestingly, 1 out of 10 agents reported that their business has not only remained stable but has actually seen an increase. The second quarter of this year is anticipated to witness a temporary decrease in home sales activity due to stay-at-home orders, but a resurgence is expected when the economy reopens. Many potential buyers and sellers have signaled their readiness to engage in real estate transactions within the next few months.

Despite the economic uncertainties, home values and interest rates have exhibited stability. Real estate agents are leveraging cutting-edge technology tools such as Zoom, Messenger, and Google Meet to facilitate virtual open house tours, enabling buyers to explore homes remotely. This technological shift has not only streamlined the home-buying process but has also made it more accessible to a broader audience.

Moreover, settlement closings have not experienced delays, providing a sense of continuity and assurance to both buyers and sellers. The resilience of the real estate market is further highlighted by the fact that 24% of millennials have received assistance for down payments or closing costs from friends or relatives. Over the past five years, almost two-thirds of agents have assisted clients who received financial support from parents or relatives to realize their dream of homeownership.

While the current scenario may not necessarily dictate a permanent shift in real estate practices, it undeniably underscores the resilience of buyers and the adaptability of real estate professionals. Embracing technology has proven to be a game-changer, creating a mutually beneficial environment for both agents and buyers.

Real estate professionals, including home inspectors and appraisers, have found innovative ways to continue their work while adhering to safety measures. The use of masks, gloves, shoe booties, and hand sanitizer has become commonplace to ensure the safety of all parties involved and mitigate any potential contamination issues, in accordance with the policies of their respective companies.

Navigating the Virtual Home Buying Process: A Step-by-Step Guide

1. Embracing Virtual Tours:

• Utilize video conferencing tools such as Zoom, Messenger, or Google Meet to conduct virtual open house tours.
• Leverage these platforms to ask questions, seek clarifications, and gain insights into the property’s features and condition.

2. Comprehensive Property Research:

• Rely on online resources to gather detailed information about the property, neighborhood, and local amenities.
• Explore virtual neighborhood tours and online reviews to gain a comprehensive understanding of the community.

3. Virtual Consultations with Real Estate Agents:

• Schedule virtual consultations with real estate agents to discuss your preferences, budget, and any concerns you may have.
• Utilize online platforms for document sharing and e-signatures to streamline the paperwork.

4. Financial Assistance and Planning:

• Explore available financial assistance programs for down payments and closing costs.
• Engage in virtual consultations with financial advisors to assess your budget, mortgage options, and long-term financial planning.

5. Remote Home Inspections:

• Work with home inspectors who adhere to safety measures, ensuring a thorough inspection of the property.
• Discuss inspection findings through virtual meetings, allowing you to ask questions and seek clarification.

6. Virtual Appraisals:

• Collaborate with appraisers who conduct virtual assessments of the property.
• Utilize online platforms to discuss appraisal results and address any concerns.

7. Secure Virtual Mortgage Approvals:

• Engage with lenders who offer virtual mortgage approval processes.
• Submit necessary documents online and participate in virtual meetings to discuss mortgage terms and conditions.

8. E-Signature for Contracts:

• Embrace e-signature platforms to review and sign contracts remotely.
• Ensure clear communication with your real estate agent and legal counsel during this process.

9. Virtual Closing Process:

• Coordinate with title companies that facilitate virtual closing processes.
• Participate in virtual meetings to finalize paperwork, ensuring a smooth and secure closing experience.

10. Post-Closing Virtual Celebrations:

• Celebrate your successful home purchase with virtual gatherings, sharing the joy with friends and family.
• Utilize online platforms to virtually explore your new neighborhood and engage with the local community.

The Future of Virtual Home Buying: A Collaborative Approach

As we navigate these unprecedented times, the real estate industry continues to evolve, embracing virtual solutions to facilitate seamless transactions. While the current circumstances may not define the “new normal” for real estate practices, they undeniably highlight the importance of adaptability and innovation.

The collaborative approach between buyers, sellers, and real estate professionals has paved the way for a resilient market. Virtual tools and technology have not only bridged the gap created by social distancing but have also expanded the possibilities for a more inclusive and accessible real estate experience.

In conclusion, the virtual home-buying process is not just a response to current challenges; it is a testament to the industry’s ability to adapt and thrive. By leveraging technology, maintaining open communication, and prioritizing safety, buyers can confidently explore and purchase homes, ushering in a new era of real estate that is both innovative and resilient.