Does a site visit always have to be made when investing in real estate?

In our increasingly interconnected world of real-time digital you-are-there communications, is a site visit still absolutely necessary for all real estate purchases?

Sounds like a crazy question to many, still. But many people are also buying real estate without actually being on the property physically, thanks to the magic of the internet. Because of the advanced communications technologies that’s been developed, many buyers have been able to see all that they want to see through interactive virtual reality applications that showcase the property in which they are interested.

This manner of purchasing property is particularly popular with investors who are buying strictly for business reasons and have no intention of actually living on the premises themselves. Oftentimes it’s a company that’s buying the property, as opposed to an individual investor. In such cases, it’s much more understandable why no site visit is made. But how about you, as an individual investor? Even if you have no desire to live on your property and are purchasing only to make a profit, either from resale or through rent, is it wise to buy sight unseen?

Well, yes, if the local market is hot. While there is simply no substitute for first-hand experience, sometimes first-hand experience is irrelevant. Especially where the property is a sure money-maker, and it’s only a question, if one at all, of precisely how much revenue one may expect!

Thanks to the internet, it’s so easy now to work with a local real estate agent to find the right property. They will often conduct remote video tours for you that could almost make you feel as if you were right there yourself, depending on the technology used. Remember that as investment vehicles, these kinds of properties do not always need a site visit for you to make money from them.

On the other hand, you better be sure about just how you plan on monetizing that piece of property, because it could well depend on the kinds of conditions that only a personal visit can assess! For example, you wouldn’t want to open a lemonade stand in Yellowknife, Canada, the northernmost settlement in North America, no matter how superior the local skiing conditions!

So gather information “remotely” can have its drawbacks if you do not understand the wider context involved. Another important advantage to a site visit is that you can arrange to check out several properties during your stay, and there may even be specialty tours that exist, specifically to cater to out-of-town buyers!

Okay, now, for all that, here’s the obligatory legal disclaimer: please be advised that such information as has been presented so far is mere opinion only and should in no way be ever misconstrued for professional advice of any kind whatsoever. Make sure to always consult those properly licensed and/or otherwise qualified when it comes to making business decisions of any financial importance!

Author Bio: Barbra I. Miller writes frequently on real estate topics for various online publications. Please visit TakeABreakFromRealEstate.com for more great articles from industry insiders such as Isaac Toussie and others!

Category: Real Estate
Keywords: real estate, business, advice, property, property markets, realty