Question of the Day: What percent of homebuyers in late 2020 made an offer on a house they had not seen in person?

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Aug 22, 2021
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Question of the Day, Behavioral Finance

Answer: 63%

Questions:

  • Do you think these homebuyers are crazy to make an offer on a house they have not stepped foot in? Why or why not?
  • What you be comfortable renting an apartment without seeing it in person? buying a car? attending a college? 
  • If you could not see a house but you wanted to make an offer, what sources of information would make you more comfortable with the decision? 

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Redfin):

“The virtual home tour is here to stay,” said Redfin chief economist Daryl Fairweather in her housing market predictions for 2021. “Homebuyers who are searching for a home out of town and don’t have the time or ability to view the home in person will use virtual tours as their primary means of viewing a home. The increased use of this technology, coupled with more people relocating, mean the sight-unseen trend will continue, and the majority of homebuyers will make offers sight unseen during their search for a home in 2021.”

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About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.