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In this episode, we delve into the essential factors that buyers should consider when inspecting properties. We explore the red flags, practical tips, and the importance of looking beyond superficial elements like hired furniture and fresh paint. Our experts discuss the non-negotiables and provide valuable insights to help you make informed decisions.
Utilising Google Street View for Initial Assessment
Cate begins by sharing her criteria for shortlisting properties for her clients. She highlights the significance of using Google Street View to identify potential issues such as electrical transformers, speed humps, and dodgy neighborhoods. By utilizing this technology, you can save valuable time by avoiding unnecessary drives across town.
The Impact of Technology on the Real Estate Industry
The advent of technology has revolutionized the real estate industry, enabling us to conduct business more efficiently. Cate emphasizes the importance of considering title types and zoning regulations before getting too excited about a listing. She and Dave discuss how lenders scrutinize these factors as well.
Understanding True Value and Conducting Price Analysis
Dave stresses the importance of understanding where the true value of a property lies. By conducting thorough price analysis, buyers can save time and seize viable opportunities. Cate shares some recommended steps for price analysis, starting with examining recently sold properties on search engine platforms. She also highlights the value of engaging in conversations with friendly local agents.
Forensic Analysis of Past Sales and AI Challenge
Mike sheds light on his forensic approach to analyzing past sales of a subject property. By overlaying capital growth forecasting based on sale dates, he provides valuable insights. Additionally, Mike challenges our listeners with an AI-related task. He also discusses the need for buyers to dig deeper when a property listing lacks a facade picture.
Checking the Status of the Sale
Checking the status of a sale is crucial before planning a visit. Properties may be under offer, withdrawn, or about to sell quickly. Making a quick phone call to confirm the status can save you an unnecessary drive across town.
Notable Factors Before Exiting the Car
Once you arrive at the property, certain factors are important to note before stepping out of the car. These include parking availability and restrictions, the safety of the surrounding area, the condition of neighboring properties, any noticeable noises or smells, and the ease of entering and exiting the property.
Inside the Property: Conversations and Video Notes
Dave quizzes Cate on what she looks for once inside the property. Cate emphasizes the significance of conversations with the agent and creating a positive impression. She also highlights the usefulness of capturing video notes during inspections, with the agent’s permission. Cate explains the aspects she covers in her inspection videos and the benefits they offer. COVID-19 has significantly influenced property inspections, especially in lockdown cities.
The Value of Virtual Inspections and Spatial Awareness
Mike discusses the value of virtual inspections for spatial awareness and understanding the flow of the property. The trio explores hidden aspects that buyers often overlook, and they share tips and tricks to provide our listeners with an edge during inspections.
Expert Insights on Functionality and Age of Items
Mike’s expertise as a quantity surveyor shines through as he discusses functionality and the age of items. They all share a lighthearted moment discussing functional obsolescence, while also providing insights into understanding ATO (Australian Taxation Office) effective lives, which proves valuable for investors.
Tune in to this episode to gain a comprehensive understanding of what to look for when inspecting properties and how to make the most informed decisions.
Gold Nuggets:
Cate Bakos’s gold nugget: Going in with a really clear idea of must-haves and nice-to-haves is integral. If the property has a deal-breaker, buyers need to be prepared to walk away.
Mike Mortlock’s gold nugget: Imagining the property without styling and staging is a real blind spot of people and we have to remember that staging is designed to make us pay more for the property. He also notes that many investors make the mistake of looking through the wrong lens. Lastly, asking the agents the right questions is critical. Being coy won’t help buyers at all, particularly in this market.
Differentiating what is ‘easily changeable’ from what isn’t is is Dave’s big tip. It’s the unchangeables that make a difference in the long run.
Resources:
Episode 7: How to assess and select property like an A-grade Buyer’s Agent
Episode 102: How to determine property market values by using comparable sales
