The Potential Liabilities of Selling a House Sight Unseen

sight unseen

When you work in the real estate industry, completing the proper inspections before finalizing a sale is crucial. The Consumer Finance Protection Bureau recommends choosing a reputable inspector who will examine your property for structural problems that affect your property’s selling price. 

Inspections are necessary for any real estate transaction, but they’re particularly critical when you’re selling a house sight unseen. If you’re planning to conduct this kind of property deal, get the answers to your most important questions here. Then, consult with your real estate insurance provider before making a decision.

Can You Sell a House Sight Unseen?

The simple answer is yes, you can. Selling a house sight unseen allows you to save money on in-person showings and close a deal more quickly, and many real estate professionals are taking advantage of this method. 

What Does Sight Unseen Mean in Real Estate?

In real estate, selling a house sight unseen means that the buyer doesn’t examine your property in person before buying it. Your buyers might live too far away to make a physical visit practical, or they might be finishing a military tour and be unable to leave their current post before their assignment ends. Generally in these situations, prospective buyers rely on virtual tours, photos of the house, and inspection reports to determine whether a house is worth their money without actually visiting it.

What Do You Need To Tell the Purchaser?

As your real estate insurance provider can assure you, it’s always important to be honest with prospective buyers. This importance skyrockets in the case of sight-unseen purchases. You’re legally obligated to disclose any problems with the house, such as the presence of lead paint or problems with the wiring. You also need to give buyers the full results of your official inspection.

What Are Some Common Liabilities To Avoid?

Some real estate professionals like to doctor their photos to make them more appealing. Photoshopping pictures of a house or taking strategic ones that avoid displaying major structural problems counts as misrepresentation. Before posting any photos online or sending them to potential buyers, make sure they represent the house as it is, not as you’d like it to be.

Failing to document all concerns and improvements is a potential liability to watch out for with sight-unseen transactions. Whenever buyers note that they’re concerned about an issue, record their concerns and ask them how they would like you to handle the problem. Documentation is especially important if your buyer declines to perform additional inspections.

Failing to adequately address buyers’ questions is another common problem. When potential buyers contact you with follow-up questions, be as transparent as possible. Offer to set up a video call and walk them through the parts of the house that they’re concerned about. If you promise to reach out to inspectors or other experts, make sure to do so.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.

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