BUYERS BUYING SIGHT UNSEEN

There is a new revolution of buyers out there, buyers buying sight unseen. Although there was always a small pool of them around it was less common than today. In today’s market with COVID-19 restricting travel, we have seen a large increase in Eastern states buyers. Although many people could never imagine doing this and find it a very risky strategy there are ways to minimize the risk.  

With so many online resources available it has never been easier to invest in real estate. It is not only possible to search and review properties virtually but, you can also do extensive due diligence online on everything from council zoning to capital growth to current vacancy rates.  

 To successfully purchase a property sight unseen requires more due diligence than viewing in person. 

Tips for Buying Sight unseen

Only buy dwellings that seem sound. Buying a new property may be the way to go as it in theory would have less up-keep or repairs. However, you, as the buyer of the property can nominate to conduct reports by professionals that will provide you that sense of ease.  

 These reports are:  

 Building Structural Inspection  

This is conducted by a licensed builder, in this report that will determine whether o not there are any structural issues with the property. They look at the foundations and the roof structure to ensure there are not major issues. If there are any structural issues, then it would be the responsibility of the seller to rectify these issues. The report will also offer recommendations for works – these are not considered structural however are mentioned as recommendations for cosmetic works. These are not required to be repaired by the sellers.  

Should the seller refuse to repair the structural issues you have the ability to rescind your offer and have your deposit refunded.  

Plumbing Electrical Inspection  

a report on the property from a registered electrician on the condition of the electrical wiring and associated components. These could be items such as faulty power points, faulty lights. If the report refers to any defect which the electrician certifies as not operating correctly or is dangerous then the buyer can hold this to the seller to repair, once again should the seller not repair these items the buyer has the ability to walk away. 

Termite Inspection 

A timber pest Inspection report being obtained from a licensed pest control operator, certifying that all structural improvements are free from termite activity on the date of the inspection and stating also whether such inspection disclosed damage occasioned by previous termite activity and the extent and nature of any damage. If the certificate discloses termite activity or damage in the structural improvements, then again the seller needs to rectify the issues.  

Building Plumbing Report  

Report from registered Plumber stating that the plumbing is not damaged and is in good condition. For example, testing pressure of water, taps, washers, gas cooktops, hot water systems. It is a good idea to discuss with your plumber what their report entails. Some plumbers go as far as to test the reticulation and check the gutters. Should any items be mentioned in the plumbing report as not in working order then again, the seller needs to rectify these.  

Council Approvals 

If there are any add-ons such as pergola/ patio/ carport it would be good to add a clause to ensure that they have been built in compliance of the building regulations. Therefore, a request for written proof of building licence approvals 

Swimming Pool / Spa 

If there is a swimming pool or spa at the property, then it would be wise to ensure it is to code. Place a clause in that puts the responsibility on the seller to warrant that a building licence has been issued for the swimming pool/spa at the property and will provide a copy of the approval. The last thing you want to do is buy a property with a pool to find out the pool fence is not compliant, and you need to come up with the funds to bring to current standards.  

Viewing the property 

It would be wise to have someone view the property on your behalf, even if that is a friend. If you cannot manage to do this arrange to have a skype or facetime call with the agent and have them walk you through it slowly and inspect all the elements and the layout.  

With professional photography online these days the property can appear smaller or bigger depending so seeing it with you own phone camera will remove any of those hesitations. It will also help to see some of the assets, such as water views, where they are visible from.