This episode is all about the  things that buyers should look for when inspecting property; the red flags, practical tips, seeing beyond hire furniture and fresh paint, …. and the non-negotiables. 

“Before we put any inspections in the diary, we check Google Street View.”

Cate talks through the things that she’s looking for when selecting properties to shortlist for her clients. From electrical transformers on power poles, speed humps and roundabouts, to dodgy neighbourhoods, Street View can safe wasting time driving across town.

Technology really has revolutionised how we do business.

Cate also looks for title types and zoning before getting excited about a listing. She and Dave ponder the importance of this in relation to lender scrutiny too.

As Dave points out, understanding where true value lies can save buyers from wasting time and missing out on a lot of viable opportunities. Dave asks Cate to share some of the steps she recommends when embarking on price analysis.

Starting with recently sold examples on the sold tab of the search engine is a great first step. WE can’t underestimate the value of talking to friendly local agents too.

Mike also sheds light on how he also looks forensically at past sales of the subject property, overlaying capital growth forecasting based on sale dates. He also throws out an AI challenge to our listeners! And Mike chats about the need for buyers to dig deeper when a property listing photo is missing a facade picture. Tune in to hear more…

Checking the status of the sale is important too. Sometimes properties are under offer, withdrawn, or about to sell quickly, so it’s a worthwhile phone call before you plan a drive across town.

“When you arrive, what is important to note before you even get out of the car?”

• Parking and any parking restrictions – can you get a park nearby when you visit?
• Surrounding area – does it feel safe?
• Neighbouring properties – are they well kept? Are they shadowing the property?
• Any noises or smells?
• Ease of getting in/out of the property – can you pull in and out of your own drive?

Dave quizzes Cate on what she looks for once she’s inside the property. She starts with the agent conversations, and the ways that buyers can be remembered for all the right reasons.

Capturing video notes is a very handy tool that Cate employs, but she always asks permission from the agent. She sheds light on the aspects of the inspection that she notes in her inspection videos, and explains the benefits of doing so. COVID really changed things for property inspections, particularly for the lockdown cities.

“If you remember back to 2021, we had just five minute inspections at one stage”, says Cate.

Mike talks about the value of a virtual inspection for spacial awareness; an understanding of the flow of the property.

The trio talk about the hidden things that buyers don’t always capture, and how a video inspection can aid this. From subfloor to gutters, there are tips and tricks that they share to give our listeners an extra edge with their inspections. And MIke’s Quantity surveyor strengths shine though in relation to understanding functionality and age of items. Functional obsolescence is a term they all have a chuckle about, but understanding ATO effective lives is a great insight for investors.

…And our 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:

If you enjoyed this episode, you may also enjoy these:

Episode 7:               How to assess and select property like an A-grade Buyer’s Agent

Episode 8:              Interpreting data to uncover an outstanding property and location– and how to sort the gold from the lies, damn lies and statistics!

Episode 32:           Misunderstanding what makes a good property investment – No.2 of the top 7 Critical Mistakes

Episode 102:         How to determine property market values by using comparable sales

Episode 125:         Does size matter? Should you buy a small block of land in a great location or a bigger block further out?