Thanks to the Internet where you can find all relevant tools, including videos and research data, purchasing property without seeing it is something fairly easy to do.
However, real estate agents are warning people about this, especially if you will live in the home.
On the plus side, purchasing sight unseen considerably helps in minimising any emotion you might feel on seeing the property physically (love at first sight, perhaps?). The Real Estate Institute of Australia said that selling property sight unseen is rising in popularity with foreign buyers eager to snap up property in the country.
The people who purchase property online do so because they believe it’s the trendy thing to do.
Many median priced properties in the blue chip inner city rings continue to sell well these days and so if you reside interstate or simply have no time, it is probably the only way to purchase as there is a lot of demand, with properties selling fast.
Some people will choose this path because they think they have to outsource to professionals and they may not know what they should be looking for anyway. If it’s a planned strategy, then they might have a better chance of making a better decision.
However, it is dangerous for people who have no clue about what they’re doing and are in danger of making an expensive mistake.
Usually, it’s only the positives and not the negatives are shown in videos and photos. You can use Google Maps to check some things, but you need skills for that.
There may be an electricity station nearby, big blocks of units or burnt out cars next to your property. It’s a costly purchase price and being forced to sell and re-purchase following a poor decision is very costly too.
Tips for Buying Property Online
- Ask a person you know and trust to check the property out personally.
- Don’t forget to have an independent valuation, building, pest and strata search carried out. The $1-2k cost is all worth it, even if it takes a few tries to succeed.
- If it’s an investment property, use a rental manager to look at or at least check it online. A property manager associated with the sale agent is not impartial.
- Think about hiring a buyers agent. They could take 2% out of your budget but you could save 5-10% by dodging a dud or by purchasing a better performing house.
- Focus on the figures and the research instead of your emotions. The area is often the most essential feature, all cosmetics can be modified.
Purchasing property sight unseen is not too risky, as long as you do your research. Know what you want, and if you’re largely purchasing for the future and purchasing for its prospects, it is not too risky.
The most major risk is you decide without thinking it over carefully and studying the market and recognising what prices are reasonable. However, remember that foreign buyers are very clever and have checked out all the websites, so they are sure what they’re looking for.