When it comes to buying a house, first come, first served is a guiding principle. When a property is listed, all bids are considered, but it is up to the buyer to speed up closing on the house.
And with houses selling within hours, especially in desirable neighborhoods, one of the ways of beating the competition is by making blind offers. Understandably, as your agent for real estate dealings will tell you, such offers may lead to regret if you close without ever seeing the property.
Below is some more information about what blind offers are and what you need to know before making one.
What is a Blind Offer?
In real estate, a blind offer is when a buyer indicates in writing that they are willing to acquire a property without seeing it. Informally referred to as “sight unseen”, the offer allows a potential buyer to enter into a contract voicing their intent to buy a property without touring the house’s interior. It enables interested buyers to quickly and strongly assert their wish to buy a property.
Who Makes a Blind Offer?
Blind offers are more common when buying commercial properties than residential homes. The reason is that buyers of private residences appraise a house based on aesthetics as opposed to investors looking to snatch property for its long term investment value.
While the practice has been largely confined to commercial real estate, it is now gaining track in the residential market. The shift has been brought about by the pandemic, with lockdowns making in-person showings difficult.
Ask a leading Sarasota real estate agent how the housing market was in 2020/2021. People were rushing from densely populated neighborhoods to less dense areas by the hundreds. This created an increase in demand in these newly desirable places, leading buyers to make blind offers just to get a shot at closing.
What are the risks of blind offers for buyers?
The main advantage of this practice is that it gives buyers an upper hand in a crowded market. However, making a blind offer can lead to the purchase of an undesirable house.
Any top agent for real estate knows this and will advise you to at least take a 30-minute tour of the house. At the end of the day, this is the home and neighborhood where you may end up spending the rest of your life.
What does a blind offer mean for sellers?
First off, it is a real possibility that once the buyer views the house, they will renege on the contract. What’s more, backing out of a blind offer is not illegal, meaning the seller is left looking for other prospects.
As such, a Sarasota real estate agent will likely advise against accepting blind offers. This ensures that the seller is not tied up with undecided buyers and reduces the risk of them losing precious time and possibly money if the property’s value drops while they wait for the deal to close.