WOULD YOU BUY SIGHT UNSEEN
There is a disposition among foreigners and locals to view desired property and then maybe purchase without setting foot inside the home or on the land
WOULD you buy a home you’ve only seen online and have never walked through in real life? This is what some foreign buyers of South African homes are doing. According to agents some rely heavily on online property viewing, even signing on the dotted lines without physically seeing the properties.
Most tend to catch planes for final round viewings, but for them to still be considering a property at the end of their searches they would have had to be sold by the online “show”, say agents.
South African buyers are also making increasing use of online property viewings when looking to purchase homes in parts of the country in which they do not live.
Realnet says its national service deals with this issue “quite frequently” for many buyers, including those in the UK looking for homes while they work in South Africa on contract, and those relocating from one part of the country to another.
“There is ongoing relocation between Gauteng and Cape Town, Kwazulu-natal and the Garden Route, for example, as well as between mining towns and other locations where contractors are needed for infrastructure or other medium-term projects,” says managing director Gerhard Kotzé.
Buy-to-let investors who have developed trusted relation-
Agents are noticing a growing trend of people short listing properties of interest online
ships with agents in remote locations will rely heavily on their expertise and “readily buy” properties that deliver the right sort of returns without viewing them.
Requests are also received from people who live in country towns or estates who want city apartments or townhouses close to work so they can do weekly commutes, as opposed to daily ones.
In the property industry remote viewing is also referred to as “buying sight unseen”. Rupert Finnemore, Pam Golding Properties’ regional executive in Gauteng, says buyers who make use of it are generally top professionals and executives who don’t have time to hunt for properties themselves.
He says while online viewing of property is not new, agents are noticing a growing trend of people happy to shortlist properties of interest online. Most of these potential buyers, however, still want to view the actual bricks and mortar before committing to the transaction on paper.
“With the increasing technology advancements of virtual tours and Matterport videos, consumers are becoming far better equipped to make decisions about properties they would potentially want to buy, without actually viewing them.
These technology tools give buyers and/or investors a good opportunity to experience what the property has to offer through static images and virtual tours.”
Finnemore says most people have limited time at their disposal, so by the time they have shortlisted properties of interest and have reviewed locations and properties on websites and property portals, they tend to have a good idea about what interests them.
“In some instances, pure investor-based purchasers are prepared to buy online as they will have conducted research and historically purchased via a trusted agent. They buy based on returns without viewing the actual property.”
Re/max One, which operates in the Edenvale and
Bedfordview areas, recently had a Cape Town buyer view a property online and purchase it without viewing. He was relocating and in a hurry to find a new home, and although the transaction ran smoothly, office manager Stephanie Narainsamy says these types of transactions do not happen often.
“We still advise all buyers to view the property in person before buying. That way they can be sure there are no surprises waiting when they visit the property.”
While some buyers do begin their journey as remote buyers, Charles Vining, Seeff’s managing director in Sandton, says many will, at some point, either send a representative to look at the property on their behalf, or make the journey to inspect the property before signing.
“Spending money on flights and accommodation before making a significant financial commitment or investment would be astute.”
Buyers who do view properties remotely are expats looking to invest in property in South Africa or to return home, Vining says. They may be working on contract abroad. Others look to do as much of the legwork online as possible, particularly investment buyers.
“The numbers need to make more sense than the emotive aspects of the purchase.”
Occasionally an international business person looking to invest in Sandton will buy remotely, but sends a representative to look at the property, Vining says, adding that few buyers rely on online “shows”.