- 745 homebuyers and investors participated in the survey
- Half of investors are looking into regional or interstate purchases this year
- REBAA President is concerned buyers will miss details that can only be seen in person
A survey conducted by the Real Estate Buyers Agents Association (REBAA) has uncovered some interesting findings, such as the fact 30% of buyers would be willing to take the risk of purchasing a property without inspecting it in-person first.
The 2021 REBAA and PTA Buyer Barometer Survey, conducted by REBAA, gathered the data from 745 homebuyers and investors nationally.
Additionally, close to half of the investors surveyed said they are looking to buy regional or interstate property during 2021.
Cate Bakos, President of the REBAA, is concerned at the prospect of having so many buyers purchasing property this way.
“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,” said Ms Bakos.
“We are concerned at this level of apathy and warn buyers that while new technologies have made it easier for home buyers and investors to assess property, it’s risky business to invest based on technology alone.”
Ms Bakos added that many free apps and valuation tools online are flawed and don’t take into account numerous factors such as renovation works, subdivided sites, orientation and other aspects that could greatly influence the value of a property.
She says perennial and invisible problems such as mould and damp, smells, noisy neighbours, flight paths and road noise aren’t necessarily taken into account by online valuation tools.
“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,” said Ms Bakos.
“These can include light, aspect, structural and building defects, room size, low ceilings and doorways and low-quality renovations that photograph well.”
She recommends for those who are unable to physically inspect to get someone such as a professional buyers agent to do so on their behalf.
Even for those who do inspect property physically, she still recommends buyers to engage in qualified building and pest inspectors.
“Investing in a third-party inspection with an independent professional is like an insurance policy – it could save you thousands in the long-term,” said Ms Bakos.
“The last thing you want to do is get the price wrong and pay too much.”