While purchasing property as site unseen – or not physically inspecting the home first – might seem like a no-go, many people simply haven’t had a choice.
Large portions of Australia have spent much of the year in and out of lockdown. In line with stay at home orders and social distancing restrictions, the new and constantly changing rules surrounding these health orders have also played havoc with the fundamentals on how the real estate industry works. With property prices soaring, many buyers have opted to purchase homes that they haven’t actually seen in the flesh, which is otherwise known as buying site unseen.
However, the process is actually much more common than most people would initially think. Overseas purchasers, investors and even people moving from interstate have long bought property in this manner, and skipping physical inspections can actually even be beneficial in some scenarios – but what are considered to be the golden rules when it comes to getting the process right?
The Basics Of Buying A Home Site Unseen
Buying a property sight unseen was once considered to be a process exclusive to gamblers with a dangerous appetite for risk. However, in certain situations it’s become quite the trend thanks to both COVID-19 related travel restrictions, as well as a wide range of technology that’s developed as a result.
In saying that, even the best forms of technology designed to give prospective buyers a feel for a property can only do so much. As a result, if you’re considering buying a property unseen, there’s a few key things to consider if you wish to avoid landing yourself a lemon.
Set Your Parametres – If you’re looking to buy a property site unseen, then the first step is to have a clear idea on what type of home you’re looking to buy, how much you want to spend, and what your end goal looks like (i.e your first home to live in, or apartment to rent out). Research and clearly defined guidelines are the key to buying site unseen, as this is often what your on the ground team needs to know the most when sourcing you a new home.
Enlist A Property Advisor – Otherwise known as a buyer’s agent, a property advisor is not the same thing as a real estate agent – they’re quite literally your on the ground representative, and have your best interests in mind at all times. A property advisor is a local specialist who knows the ins and outs of the area you’re looking to buy, and can help you make informed decisions with all of the right information in hand.
Research Growth Factors – Purchasing property usually involves quite a bit of money, so research factors that may impact your investment. Crucial details to pay attention to in terms of growth rates over a longer period of time include planned or ongoing council developments, council regulations, building and strata inspections, vacancy rates, demographics, holding costs, and possible income and deduction calculations. All of these can be obtained online.
Inspections Are Everything – Just like any potential home purchase, be sure to order building and pest inspection reports to get a clearer understanding of the abode. If it’s an apartment, then make sure you obtain a copy of the recent body corporate meeting minutes to see what’s being discussed and what potential works are in the pipeline. In the case of a new development, you can hire an expert to complete a handover report to ensure defects are identified and fixed.
If you’re serious about buying site unseen, then the people you have on the ground are wildly influential when it comes to ensuring you avoid purchasing a dud. As such, one of the most important members of your team is a reputable property advisor.
Ideally, they should already have an extensive background working in the real estate industry. More often than not, they will have access to resources that extend far beyond the standard responsibilities of buying and selling property, such as a network of contacts amongst agents, solicitors, tradesmen and accountants. A property advisor works in an advisory capacity in order to help you plan more strategically, and ultimately increase the value of your current or potential assets. Just some of their standard duties include:
- Perform extensive research on sales and purchases in your area
- Research and assist with agent selection when selling
- Help you to eliminate wasted costs
- Recommend legal representatives to prepare contract of sale and other legal documents
- Ensure you have a structured campaign in place when selling a home
- Help keep the agent accountable at all times
- Assist you with negotiations on price when both buying and selling
- Helping you through the settlement process once your home is sold
Technically speaking, a free property advisor doesn’t cost a thing to everyday people looking to buy or sell a home. Rather, they act as a vendor advocate, and take a percentage of the real estate agent’s fee – meaning no additional out of pocket expenses for the owner.
Take The Stress Out Of Buying And Selling Property
A completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
