Attending an open for inspection is usually the first stage of sussing out a potential purchase – and sometimes, one of the most crucial. It’s your earliest opportunity to see a property in the flesh and, if you plan to move into it, get a proper feel for whether you could see yourself living there.
But, when you go and view a property in person, what should you look out for? Our NSW Buyer’s Agent Sam Williams has put together four things he assesses when inspecting both family and investment properties to make sure they fit the client’s brief.
1. Its location
The old real estate adage ‘location, location, location’ didn’t come about for nothing. Besides the property itself, where it’s situated is one of the most fundamental factors – particularly from an investment perspective. (You can read more about what we deem a good location here.)
Sam believes that assessing location can also be a great way to differentiate between properties if you have multiple strong contenders.
“When comparing similar properties, it may come down to some small but handy features such as being closer to public transport or local amenities,” he says.
However, Sam adds that location can be one of a property’s biggest downsides: “We wouldn’t proceed to an inspection if the home was on a main road.”
Location can also encompass its position on the block, namely its orientation. Sam mentions that properties should, ideally, have a northern rear aspect to provide plenty of natural light. On the other hand, a south-facing aspect can have the opposite effect, while a westerly one can attract (undesirable) direct afternoon sun.
2. Where value can be added
At Milk Chocolate, many of our best property purchases – both investments and family homes – have been those that presented worse for wear upon inspection, but were made all the better through smart construction.
If properly optimised, a renovation can not only make the home much more liveable and in line with a client’s preferred aesthetic, but it can seriously boost its value. This can be especially beneficial for investment properties, where updated elements can improve rental yield now and property value if and when it comes time to sell.
There are several key features we look for in homes with renovation potential, and some of them can be easily assessed in the very early inspection stages.
“l [look] out for where value can be added to the home,” says Sam. “[In other words], the kitchen needing an update or a bathroom needing a renovation.”
On top of the kitchen and bathroom, other construction projects that boost value include adding an extension, building a granny flat, improving the property’s street appeal (external paint, landscaping and entryway), and updating flooring and window dressings. Fortunately, you can usually assess the potential for all of these during an open house.
3. Any red flags
Besides being on a main road, there are additional drawbacks that Sam looks for that can indicate whether a property is a dud.
“When inspecting, red flags would be any mould on the ceilings or walls, or any structural damage to the property,” he says. Obvious potential structural problems include large cracks and ill-fitting windows and doors.
Other things to look for include visible damp, paint bubbling, noise from neighbouring apartments or the road, uneven floors, strange smells and exposed wiring.
That being said, there are several issues that often can’t be detected at a 15 or 30-minute open. Underlying ones like termite damage, rising damp, electrical or plumbing faults and asbestos can only be uncovered by more invasive inspections done by professionals.
This is why, if you’re narrowing down your search to a particular property, proper due diligence is key. We’ve put together a guide to undertaking property due diligence here.
4. Your feelings towards it
Where family homes are concerned, sometimes there’s simply a feeling that ties a buyer to it. It could be the homeliness of the property, the layout or the heritage features. It could also be a certain je ne sais quoi.
And even though it may lack some of the investment fundamentals we look for, the buyer could be so besotted with the property that we still see it as a worthy purchase.
“While my role is always to have an investment safeguard mindset for the property, there may be allowances for a family home purchase simply due to the buyer having an emotional connection to the home or location,” says Sam.
In some cases, whether a home is worth buying or not can just come down to a gut feeling. If you head along to an open for inspection and you’re immoveably smitten, there could be a very good reason for making the property your own.
If you’re looking to purchase an investment property, expand your existing portfolio or find a family home, get in touch to discover how Sam and the Milk Chocolate team can help.
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