How to navigate a blind offer in real estate with confidence

A blind offer in real estate is like buying a mystery box – you’re committing to purchase a property without laying eyes on it in person first. It does give buyers good homeownership opportunities – especially in hot markets where houses fly off the shelves faster than hotcakes. And, it’s not just regular buyers doing it, but also those flipping houses. 

This trend began during the 2020 pandemic when lockdowns made in-person house viewings tricky. So, potential homebuyers were relying on fancy virtual tours to make decisions about where they’d live next.

So, is a blind offer any good? Well, a blind real estate offer may be the most unconventional way of buying a house as it curtails the buyer’s ability to vet the property. 

For the home seller too, it means waiting on a buyer who may or may not go through with the house sale once the property is finally seen in person. In that sense, it puts the seller at a disadvantage because buyers may back out of a house-buying deal after actually touring the property. And, they may lose out on the multiple offers they had. 

What is a blind offer in real estate?

Simply put, a blind offer in real estate is a purchase contract whereby the potential homebuyer puts in an offer on a piece of property without actually seeing it – which they have only virtually seen. The downside is that a blind sale doesn’t allow the buyer to examine the property physically before going ahead with the purchase offer.

Blind offerings are more common for commercial properties such as apartment complexes or multi-family homes. And, less so in single-family homes. 

A blind offer is one of the quickest and easiest ways to bid on a house. It saves buyers and sellers time by skipping home inspections or home appraisals. 

This trend of purchasing a property without seeing it first rose during the 2020 pandemic due to lockdowns. It allows buyers to use virtual tours of a property for decision-making. In competitive markets with limited inventory, blind offers provide buyers a chance to enter the real estate market before properties are sold. House flippers also use blind offers to secure properties. 

Who benefits the most from a blind offer in real estate?

During the 2020 Covid-19 pandemic, making blind offers in real estate became more common. Because lockdowns and social distancing rules stopped people from seeing houses in person, buyers had to rely on virtual 3-D tours to decide on homes. With fewer houses available and high demand during the pandemic, good homes were sold quickly. Blind offers gave buyers a chance to enter the housing market and secure a property before others could. 

Moreover, home sellers found blind offers a quick way to get the best price for their property without wasting time on endless showings. 

All in all, making an offer for a sight unseen is a win-win for both buyers and sellers. Plus, if they’re lucky, they might just find a buyer who’s ready to throw down some serious cash without even stepping foot in the door. 

And let’s not forget the house flippers who love blind offers too since they can swoop in, grab a property, and start flipping without any hassle. 

How do you win a blind bid?

If you’re facing a blind bidding process, it’s best to work with a licensed real estate agent. They will guide you on the true value of the property and the market conditions. But remember, while making a blind offer bid, you need to be cautious, and not allow yourself to become emotionally attached to the bidding outcome.  

A person who is relocating to a new city and urgently needs to find a new house would be unable to look for homes physically. Such a prospective buyer would virtually contact the local listing agent to look at the best real estate properties. And then, submit an offer to the seller. They would visit the property when possible before finally deciding to buy the house. 

Read more: Why do I keep getting offers to buy my house

Pros and cons of blind offers to buy a house

There are a few advantages and disadvantages that come when writing blind offers. The biggest advantage is that it saves time for both parties. The second is that it allows a buyer to back out if they don’t like the house.

This is however not so advantageous for the seller. Also, a downside is that a blind offer may limit the buyer’s ability to inspect the property – to assess the building materials, the construction’s strength, and the structure’s endurance. Buying a home without seeing it in person is not the safest option. 

Read more: Can a buyer back out of a contract?

Key takeaway

A blind offer is a potential buyer’s offer to purchase a property without seeing it. It’s more often than not more disadvantageous for the seller than the buyer because the latter can back out of the transaction after visiting the property. Although real estate experts do not recommend the practice of buying a house remotely, it has grown in popularity in recent times. Particularly during the 2020 pandemic.

FAQs

Do estate agents pretend there are other offers on a house?

Realtors and real estate agents sometimes suggest there are other offers to speed up a home sale. While this can be true in hot markets, it’s also a tactic to create a sense of urgency. It’s like a game of negotiation in the real estate industry. On your part, do your due diligence and trust your instincts when making decisions about buying a home.

Why would a potential buyer make a blind offer?

Blind offers are often made when buyers are unable to visit the property in person due to various reasons such as distance, time constraints, or during situations like a pandemic when in-person viewings are restricted.

Are blind offers legally binding?

Yes, blind offers are typically legally binding once accepted by the seller. However, buyers may have contingencies in the contract allowing them to withdraw if certain conditions aren’t met after viewing the property. However, this could result in legal implications or the loss of earnest money deposit.

What are the risks of making a blind offer?

The main risk for buyers is purchasing a property without seeing it in person. It could lead to unexpected issues or discrepancies. Additionally, sellers may prefer offers from buyers who have physically toured the property. That’s one of the reasons why many agents and realtors do not recommend blind offers in real estate. 

Written by Ramona Sinha. April 14, 2022

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.