If you’re planning to invest in a real estate market that isn’t your own, there’s a possibility that you may buy a property without seeing it first.
This may seem risky and counter-intuitive. But, is being there in person really necessary?
Not anymore, thanks to technology and the availability of local experts who can help you navigate a new market.
To invest successfully sight unseen, there are several factors that you must consider. It is essential to do your research, understand the market trends, assess the risks involved, and seek the guidance of local professionals.
Here’s what you need to know.
Conduct Research and Complete Due Diligence
Get to know the market you’re thinking about investing in, particularly the inventory of available properties and the strength of the rental market. You’ll want to understand the trends, rental values, tax rates, and other significant aspects.
Online research is easy and information is widely available. When you identify a prospective property, you can investigate its history, previous sales and rental rates, neighborhood information, and other relevant information.
The marketing photos won’t be enough. Do your due diligence and get to know what you’re really buying.
Partner with Local Real Estate Professionals and Property Managers
Local industry professionals, including Realtors, property managers, and lenders, are a great source of information and guidance. Your local team can help you gather the necessary information about the property and the area before making the buying decision.
Property managers are an especially valuable resource. We’ll be able to tell you:
- What the rental value will be on a potential property.
- What you’ll need to spend to get the property rent ready.
- How much you should budget for maintenance going forward.
- How long it will take you to find a resident.
Working with a property manager early means it will be a seamless transition once you’ve closed the deal and it’s time to lease, manage, and maintain your investment. You’ll already have someone in place who is knowledgeable about your property and the local area.
Insist on a Property Inspection
Before making the final buying decision, it’s essential to order a complete property inspection. Inspectors can provide insights into the property systems, including the plumbing, heating, and air conditioning. You need to know where any challenges may be lurking. Over the last couple of years, with the real estate market being competitive and crazy, a lot of buyers have offered to waive the inspection in order to get their offers accepted.
That won’t work when you’re buying a property sight unseen. You need that inspection report.
Investing in a property without seeing it is easier than ever, thanks to your ability to tour a home virtually, research what you need to know online, and communicate with local experts who can be your eyes and ears in a market that you may never visit.
If you’d like some help working on investments from afar, we would love to speak with you. We work with remote investors all the time, and we can help you buy a property sight unseen. Contact our team at Sunburst Properties.
