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The Couch Potato's Guide to Buying a House Entirely Online

Posted On Wednesday, 19 June 2024 11:08
The Couch Potato's Guide to Buying a House Entirely Online Image by freepik

In today’s ultra-digital age, it's entirely possible, although not physically or mentally healthy, to live without ever leaving your home. You can have a remote job, order anything online, including food, and have it delivered to your door. Traditionally, purchasing a house has involved many steps that require getting off your couch: touring houses, strolling the neighborhood, visiting the bank for a mortgage, and going to the title or escrow company’s office for signing. However, as a thought experiment, let's explore how you can buy a house from start to finish from the comfort of your home.

Searching for Homes Online

This step is already well-established as an online activity. Homebuyers predominantly use websites like Zillow, Redfin, and Realtor.com to browse listings and filter homes by factors such as price, square footage, and the number of bedrooms and bathrooms. They then use images and other details to create a shortlist of their preferred options to tour.

Finding Real Estate Agents Online

When you find a home on the above sites, they recommend an agent available in that area with whom you can connect. However, you can also find your ideal local agent based on performance metrics and client reviews using websites such as HomeLight.

Taking Virtual Tours

Virtual tours became popular during the COVID-19 era and remain an essential option for the couch potato homebuyer. Some listings have pre-recorded virtual tours powered by 3D cameras, allowing you to navigate around the house using your keyboard arrows. However, for a more interactive experience where you can ask the agent questions or request them to interact with the house (test functionalities like faucets and lights), you can schedule a virtual tour with your agent. Video chat apps like FaceTime or WhatsApp, or specialized virtual tour apps like Floorfy, allow buyers and agents to connect for this purpose.

Researching the Neighborhood Online

Understanding the neighborhood is vital in the homebuying process since a bad choice can lead to regret, even if the property itself is great. Normally, it’s recommended to walk around the area at different times of the day and talk to the neighbors to get a feel for the area. Our hypothetical home-bound buyer can use online services to inspect the neighborhood.

Maptimum provides detailed reports for the area surrounding an address, including crime and safety metrics, demographic and socioeconomic variables, school quality, politics, environment, and other factors that offer a holistic view of the neighborhood’s vibe and potential. In fact, this may be a more reliable way of examining the neighborhood because it's data-driven and not based on snapshot observations or anecdotes.

Additionally, you can use Google Street View to virtually “drive” around the area and look for signs such as unkempt lawns, junkyards, poorly maintained properties, or other red flags.

Securing a Mortgage Online

The days of wearing a suit and tie to the local bank to apply for a mortgage are over. Nowadays, most buyers use online filtering tools like NerdWallet to find mortgages with the lowest rates or other favorable terms.

Finding a Home Inspector Online

A home inspection is a critical step in the home-buying process. While your real estate agent may recommend an inspector, there can be downsides to this. Agents might recommend someone who overlooks problems to close the deal faster. Furthermore, their network of inspectors could be limited, leading to higher costs for you. By searching online via sites such as HomeAdvisor and Angie's List, you can choose from a list of pre-screened local home inspectors based on their reviews, ratings, and cost estimates.

Avoiding Scams Online

With the convenience of online transactions comes the risk of scams. Two common scams when buying a home are wire fraud and title fraud.

Hackers commit wire fraud by posing as your real estate agent or title company and sending a fraudulent email to you. The email may state a last-minute change and direct you to wire the closing costs to a different account—theirs. Services like CertifID.com protect you against wire fraud by allowing you to verify identity and bank details before transferring any funds.

In title fraud, fraudsters sell a property (especially vacant ones) they do not own using forged documents to impersonate the real owner. Most counties in the United States have a website where you can search property records by address. This will typically show the current owner's name and mailing address, which should match the seller's name you're working with.

Closing the Deal Online

This step may not be possible to do online everywhere because not all states allow remote closings or remote online notarizations (RON). Check with your lender and closing agent to confirm if it's an option in your location. Documents can be securely managed and signed electronically using platforms like DocuSign. A notary public can witness your electronic signatures remotely using services like Notarize.com.

Getting the Keys by Mail

Once everything is finalized, you can receive your keys without leaving your home. Coordinate with the seller to ship the keys to you via FedEx or another reliable courier service. Some sellers may use a lockbox service, allowing you to pick up the keys at your convenience from a secure location.

Conclusion

While buying a house entirely online is a fascinating concept, the importance of visiting the property and neighborhood in person shouldn’t be downplayed. However, the tools and services mentioned above can significantly streamline the process, making it more efficient and accessible, regardless of your preference for staying home during the process.

By utilizing these online resources, you can conduct thorough research and make informed decisions at every step from the comfort of your couch. Happy house hunting!

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