Homebuyers avoid physical inspections in hope of getting into booming market faster
Desperate home seekers increasingly want to buy properties sight unseen in an attempt to leapfrog stiff buyer competition during the housing boom.
Nearly a third of prospective buyers surveyed in a recent national poll said they would take the risk of buying without physically inspecting a home.
Their view was that buying sight unseen would be a way to get their foot in the door quicker, according to the research by the Real Estate Buyers Agents Association and Property Talk Australia.
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Many of those contemplating a purchase without visiting the property were considering buying in a regional area or interstate, the survey of 745 homebuyers and investors revealed.
Real Estate Buyers Agents Association president Cate Bakos said the rise in sight unseen purchases was a response to the competitive market and an increasingly digital world.
Buyers are often relying solely on images provided by the agent to make a decision.
“It’s alarming to think that people are basing the biggest financial investment decision they’re likely to make in a lifetime on a video and a few photographs that may or may not be showcasing the property’s flaws,” Ms Bakos said.
“We are concerned at this level of apathy and warn buyers that while new technologies have made it easier for homebuyers and investors to assess property, it’s risky business to invest based on technology alone.”
Ms Bakos added that some free valuation tools and technology apps were flawed and failed to account for renovation works, subdivided sites, orientation and other important aspects.
“(Some) are merely built with algorithms, and as clever as they are, they can’t offer the same insights that a genuine valuation does,” she said.
Buyer’s agent Cate Bakos said not viewing properties raised the risk of missing potential problems.
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Not physically inspecting property raised the risk buyers would miss invisible problems like mould and damp, unsightly smells, noisy neighbours, flight paths and road noise, Ms Bakos said.
“It might look good in the video and photographs but there may be a number of serious flaws that aren’t showcased by the selling agency,” she said.
“These can include light, aspect, structural and building defects, room size, low ceilings and doorways and low-quality renovations that photograph well.”
Ms Bakos urged buyers who were unable to physically inspect property to get a reputable third party to inspect the property on their behalf.
“It is also valuable for buyers to engage a qualified building and pest inspector to check the dwelling … the last thing you want to do is get the price wrong and pay too much.”
Property research group CoreLogic reported Australian housing values grew in February at the fastest rate in 17 years.
Sydney prices rose by 2.5 per cent, with CoreLogic head of Research Tim Lawless pointing to a shortage of available housing and rampant buyer demand as the biggest drivers of the increase.