​Would You Buy Real Estate Sight Unseen?

Many purchase real estate "sight unseen" and have great success, while others end up with a blind date that proves financially disastrous. So how do you do it well? Personally, I believe that a contingency is wise to have in your offer. For sight unseen properties, definitely the inspection contingency. Inspection, mortgage and appraisal contingencies are most common, but there are others and you could also include just about anything in an addendum. Especially for out of town investors, buying a property sight unseen can be a very scary experience. So I always suggest to find a real estate professional that can offer advice. For example, on a case by case basis, and after establishing a formal business relationship, I have toured properties in Pittsburgh PA, taking pictures and pointing out any issues that may be concerning. While residential home buyers often see up to 25 pictures when looking online, Investors don't always find that in REI listings. They also must look at a whole world of other financial issues besides list price, mortgage, rent rolls, utilities, other expenses, GAI, NOI, cap rate and many other factors. Having more information about these items help tremendously. But again, not all listings found online have this. Thus, hiring an experienced real estate professional, in your market of choice, to do some of the legwork can prove very beneficial. Now with all that said, many still buy site unseen without contingencies or data, because they find a great deal or they are really buying for the land. That's ok, but if you want to purchase a property without seeing it, you may want to get a clearer picture before making a decision to purchase.

Don't adjust your computer settings. This picture is meant to give you an idea of what it can feel like buying real estate sight unseen. Not to worry though, the outlook can be clearer when properly assessed.

Again, I highly recommend sufficient due diligence, no matter if you have seen the property or not...but especially so if you have never seen it, or have only virtually viewed it. That way, if anything shows up, such as electrical, structural or mold, you have the option of moving forward with the bargaining process or backing out of the agreement altogether. Even if you have seen the property, an inspection is a very sound investment. It should be performed by an experienced and impartial industry professional who can recognize issues that may not be visible to the naked eye.

If you are remote to the property you're interested in or so busy in life, you may be unable to see the property in person. With that said, I still suggest that any out of town investor or home buyer at least make one trip to the area they're interested in. If anything, you get a better idea of the neighborhoods, topography, type of housing available and various amenities that a city offers in attracting renters/buyers. Still though, many people purchase real estate sight unseen because the price is extremely low, creating what seems like the deal of a lifetime. Others do it because they are not concerned so much for the building, but more so for the land. In these cases and for other reasons, they do buy sight unseen and many have great success. We also know the housing market is so vigorous that if you snooze, you could lose. So if you feel it is a solid opportunity, go for it!

And remember, you don't have to go it alone. Reaching out to a real estate professional or fellow investor that has had success in that area, is extremely beneficial. Even hiring someone to help grow your portfolio is often money well spent. As always, choose wisely and interview extensively if going that route. If relocating from your place of employment, many companies have relocation services that can offer guidance. The idea here is that it's ok to ask for help, and in many ways, should be encouraged to protect your interest and assist in your overall decision to buy remotely.

Especially in today's virtual world, you can have a home or investment property even if you live on the other side of the country or globe. Real estate can be purchased "sight unseen"--if done correctly. Good Luck!