Hi Property Investors,
This is my first post and in light of my first property purchase being in sight, I was wanting to ask a question on purchasing a property without physically inspecting it yourself. Since it is likely I will not be purchasing within driving distance from my home, I need to be aware of what I need to do and be aware of, when it comes to having someone else inspect it for me.
So, without further delay, has anyone purchased a property without physically inspecting it themselves? If so, what strategies did you employ to give you the confidence to purchase the property without seeing it in the flesh?
Thanks in advance,
Sean
Consider using a buyer's agent – they can provide a lot of information, organise building/pest inspections etc.
I recently made a purchase without seeing the property, I was away working at the time and the numbers were quite impressive so I negotiated a deal and got it over the line, all happy days. However the building and pest inspectors I used I have a rapport with from previous purchases and they were happy to give me their honest, detailed opinions over the phone which gave me confidence to move forward.
I think if the numbers stack up and you can find a thorough unbiased inspector, go for it.
There's no issue with buying sight unseen – providing "someone" else that you can trust is inspecting the property on your behalf.
I'd look into a buyers agent. If you've already sourced the property then perhaps see if they offer a limited service which involves inspecting the property.
It goes without saying that a building/pest inspection needs to be carried out. Don't use one recommended by the real estate agent.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jamie M wrote:Don't use one recommended by the real estate agent.
if you are the buyer. Wouldn't use a solicitor that they suggest either (although they are meant to be impartial).
Yep good point – keep it all independent.
The agents only role should be selling you the property.
When you work out who you're going to use for property management in the area, ask them for some recommendations on who to use for some of these services.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I did it once with my first IP. We were worried about purchasing with sight unseen but it turned out quite well. We monitored the price and rent in the area for a few months. We chose the property that already has tenants in place. For us it's a peace of mind showing that property is in good condition. The photo in internet looked good which is confirmed by a bit higher than average rent the tenant is paying. We also talked to building inspector (the one recommended by our solicitor, not vendor) both before and after he did the inspection. Once all information matched, we proceed with the purchase.
Property investment is not a small amount of investment.Here a huge amount of money is incurred. So, without inspectig about it making investment in it will be a risky task. I don't think that anyone should do this.
Circumstantial but I agree. I think its worth a spare $500 to jump on a plane and back. Even if its just for re-assurance.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Guys,
We bought a property sight unseen – we had the building inspector take lots of photos for us and gave us a very detailed report. He gave us a lot of confidence that everything was fine and everything that wasn't we were able to negotiate the price down
Kate
Fair enough but you need to ensure that its a top notch building inspector. Like anything there are good ones and there are bad ones. Its worth investing in a bit more and getting a good building inspector.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
I regularly invest site unseen. When it comes down to it, unless you are qualified, there is not much your untrained eye could pick up by inspecting anyway. As everyone has mentioned, a quality building and pest inspection is the best option and obtaining photos if you can.
Potentially seeing the property yourself can lead to talking yourself out of the property that otherwise has sound numbers and stacks up as an investment. It shouldn't be an emotional decision.
I also recommend engaging a property manager not associated with the sale, and saying that you are looking at options for managing the property and would they mind inspecting it to see what it's like? A good manager will be happy to do this if it means securing your business (just be sure to research property managers too!!).
I have no problem buying unseen. Always be sure to include clauses in your contract that stipulate a get out clause if any building/pest is not satisfactory (solicitor can help with this).
Happy investing!!
Apart from all these, certain other points should be taken into account. The peripheral area should be judged and this can give a fair idea on the core working procedures. The very first step of searching a property manager should include thorough analysis. The analysis of the market along with the firmness of the company can ease the stress of choosing from the lot. Family, friends and relatives should be consulted and their opinion should be taken, for deciding on a good one.
Furthering on from some of the points here…. If you have never been to a particular area that you are interested in buying where would you look to find a buyers agent?
Our main strategy is to invest in 1 hour traveling in our area in North London.
We would never ever invest without seeing it and doing a very deep due diligence.
All the best
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