How many people do this when buying inv. properties? Obviously it would cost to much to fly to various states when a prop. is spotted. What are the potential risks? how can you reduce the risks?
I am a novice with limited experience, but I would think if you can’t inspect it yourself or have someone on your team who you can trust do it, then you are raising the risk of the investment substantially.
It is approaching gambling rather than investing IMO.
On the other hand, someone very experienced in buying property may be able to do this with far less risk.
I would not buy sight unseen. In my view there is nothing that would alleviate the risk in buying a property unseen.
The only exception is unless you know an area well. You know it well and the surrounding area. You seen the streets and know its a good part of town.
In my view – whats $1500 in flying there and getting a valuation when you spend in excess of $100k.
I know some from this forum do buy sight unseen – but not me.
I agree with Yack, I would not buy sight unseen. But I think we may differ in exactly what sight unseen is. I buy in towns and areas I have visited, places I have done my homework on. I do however trust my team of people to look at the property and provide data for me without me necessarily seeing it myself.
It is definitely something you weigh up risks/pros/cons of, and decide how you feel – price, who views it for me, return, style of house, all have a bearing on how comfortable I might feel about a particular property.
At the end of the day, some of us do, some of us won’t buy sight unseen. Just be careful if you do, have someone check it out for you and have an out if you can.
Cheers
CDCastleDreamer
I agree. It is much better to have a good inspection yourself, and it does not necessarily cost $1500 unless you go Sydney Perth. I drive if it is under 4 hours; otherwise, REX is a wonderful airline and can be seriously cheap if you buy well in advance. What do you think of $89 for a 400km trip?
Once you know the town very well, have a local street directory with all the bad areas marked (with notes), have a real estate agent that is a professional, an you really trust the local building inspector, well, you can say that you may get away with not inspecting yourself . . . .but . . . .why do it? You are missing all the best fun.
What are you going to tell your children? That you walked in a property to inspect it and the floor boards gave way under the agent and she disappeared under the house?… or that you courageously …clicked on an email?May God prosper you always.[biggrin]
Marc
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