Buying properties sight unseen: Is it worth the risk?

Question

There's no doubt that the clock starts ticking once a "deal" property lists. That being said, how many of you buy sight unseen to beat the clock? I couldn't imagine buying a property without seeing it in person first. It's amazing how good some of those photographers are........

Jonathan Greene · Answer

It all depends on your level of experience, whether your agent or boots on the ground have seen it and sent you video, how good the photos are at getting everything if it's a wholesale deal, and your risk tolerance. No first-time investor should be a rehab property sight-unseen. They would be better off putting their money in a pot and lighting it on fire.

If you are buying quick and sight-unseen to beat the rush, you are buying for the wrong reasons. As an investor, I don't compete because if I am competing, I am losing money. I know my numbers and comfort level and I am not rushing to buy blind because I think it's the only property like this - it's not.

Rodrigo Serzedello · Answer

I've bought 4 properties in Ohio just out of pictures that my agent sent me.

I'm from San Diego and have a team there that I can trust, this is really important to give you up to speed in negotiations out of state.

#Trust!

Jay Hinrichs · Answer

depends going into contract and closing are two very different things..

Steven Foster Wilson · Answer

I bought a property sight unseen here in Columbus a couple of months ago. Here are a couple takeaways I have

- I wasn't able to see the condition of the walls, there was an ugly stamping that required all the walls to be re-drywalled

- There was a dip in the floor that I could not see, this required to jack up the floor

- The bedrooms were really small, the pictures made them appear larger in size.

Overall, would I do it again, probably not. However that being said, I bought it for $63k, am putting $30k into it and will hopefully sell for $125k+, so not a total loss.

Mark Frattini · Answer

Depends on your risk tolerance. For a personal residence purchase I would want to see the inside if at all possible.

A rental property..absolutely. However, don't trust the photos. Have your agent, PM, family member etc. FaceTime walk the property with you.

Brandon Sturgill · Answer

@Spencer Herrick like most of the folks said here, it's about your team and being sure you have a solid due diligence process in place...no need to see a property in person if the property meets all the criteria on your due diligence checklist...the first 35 checklist items are crossed off in the first 3-days of due diligence...

One thing you have to remember is almost every existing and new structure in the country was built by a professional developer that met strict requirements set by building codes...properties can have issues, but almost anything can be fixed...overall SFR and MF homes are incredibly durable.

Eddie Torres · Answer

@Spencer Herrick I just bought my 1st rental property out of state without ever setting foot in it. I relied solely on videos and photos. It was a newer house though. About 12 years old.

Mike Mosee · Answer

It all starts with having the right team you can trust to steer you correctly.   Have never seen any of the several properties we've bought until years after the fact & so far never gone wrong

Theresa Harris · Answer

I've had a trusted family member do a tour along with a video tour.  They were all conditional on the inspection (and financing), so I had an out.

Bruce Woodruff · Answer

I've bought properties without going inside. Just walking around the exterior..... It's a big risk, but ya gotta have big ones sometimes to beat the crowds.......

Buying properties sight unseen: Is it worth the risk?

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