As an investment strategy, buying sight unseen can be a profitable way to build your portfolio. But, you need to put certain processes in place to ensure there are no nasty surprises.
Throughout my investing career, I’ve worked out that there are five different people who need to view your potential new property investment before you buy. The way I see it, making a decision to purchase a property sight unseen is a lot easier when you have all the photos, reports, feedback and assessments from five independent sources:
1.Real estate agent:
We always request as many clear photos from the sales agent as possible, especially the kitchen and bathrooms. We also request photos of the streetscape and the neighbouring homes. I once had a client who looked at buying a house that looking appealing in initial photos, however the
building next door was an industrial Laundromat, with trucks coming and going all day. The photos saved my client from a potential disaster.
They will assess and identify any structural or building issues and will usually take photos as
well, giving you another source to review the property’s features.
A pest inspector assesses the property to ensure there are no creepy crawlies present that could cause potential damage to the building. The pest inspector’s report also generally include photos and give an overview of the general condition of the property.
4.Property manager’s inspection:
A property manager can become your eyes and ears when purchasing sight unseen; they’re fantastic for assessing how rentable a property is. The last thing they want is a property that has been neglected and requires continuous attention, so they’re usually quite honest and upfront. We usually ask a property manager from a different realestate agency to the selling agency to review the property and avoid conflict of interest.
The bank valuer will assess the property for its value and provide a valuation to confirm that your
offer on the property is in line with its fair market value
“Until next time, happy investing.
Helen Collier-Kogtevs is a bestselling author, educator, speaker and property investor. Her passion for wanting to make a positive difference to people’s lives, inspired her to create mentoring programs that teach people how to retire on $100k plus with 10 properties in 10 years or less.”