Whether you’re a wholesaler, flipper, investor, or a family looking for a home there are many things to know about buying a house sight unseen. Buying a house under these circumstances will usually rely on an agent’s eyes and ears. The buyer must have specific enough criteria so that the agent has the information needed to pursue the search. If the buyer does not give enough details then the agent is less likely in having the results the buyer wants. Either way, the buyer is putting huge amounts of trust and dependency on the agent.
Many risks are involved with this sort of purchase. As already stated, specific details and criteria are imperative to ensure accurate results. The agent will send the buyer many pictures of the property up for discussion, but the buyer should be aware that defects in the property are easily hidden in photo angles. Water damage, mold, infestation, and structural damage may not be seen in a photo. These factors can cost the buyer more money than the house is even worth in the long run. In contrast, when a buyer is able to see the home they are able to identify with the home and the neighborhood. We can’t smell a house from a picture and we can’t get a feel for the neighborhood through a picture either. These factors won’t matter as much to an investor or flipper compared to a family though.
There are ways to protect your potential investment under these circumstances which include a contingency clause. When purchasing a home sight unseen it is wise to get an inspection contingency. This gives the buyer the right to have the house inspected within a certain time frame. Based on the findings of the professional house inspection, the buyer can negotiate repair costs or cancel the contract within that time frame. Since many of the costly repairs could be hidden in the walls and structure of the house it is for the buyers’ protection to have the inspection. A professional house inspector will check the plumbing, ventilation elements, electrical, and structural assets of the house. This leaves the buyer with the truth about the house and its condition.
Working with an agent you can trust and communicate effectively is always top priority when buying a house sight unseen. This will give insight to the neighborhood and other factors that photos and inspections can’t tell you.