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New tech tools may offer great add-ons during the property hunting process, but they run the risk of luring some buyers into a false sense of security.
Aerial drone footage, virtual reality walkthroughs, and interior design generators have changed the way property hunters approach the buying journey, with new tools giving prospective buyers the ability to learn more about the current state and future potential of a property from the comfort of their own homes.
But while these advancements can be useful in helping to narrow down the list of potential properties when considering a purchase, the Real Estate Buyers Agents Association of Australia (REBAA) has warned that some people are getting so caught up in the online experience that they’re skipping out on an essential part of due diligence.
“While sleek video walkthroughs and aerial flyovers are undoubtedly effective marketing tools, offering buyers greater visibility of a property than ever before, they can never fully replace the depth of information gained through a physical inspection,” REBAA’s president Melinda Jennison said.
Jennison believes that digital visualisations, coupled with building and pest reports, may cause some buyers to think that there’s nothing extra to gain from an in-person viewing, but she highlighted that there are many nuanced features that cannot be captured in that type of documentation – and yet can have a significant impact on investment potential.
“A building and pest inspection is essential for identifying structural issues and potential pest infestations, but it won’t reveal important external factors such as neighbourhood dynamics, or nearby nuisances like unpleasant odours or disruptive noise,” she said.
“Additionally, they won’t highlight whether the property is situated in a less desirable part of the neighbourhood or if there are disruptive neighbours or other similar external factors.”
Particularly for buyers looking for investment properties that they intend to leverage on the long-term rental market, Jennison noted that certain legal standards could be easily missed without a physical inspection. For example, a virtuality reality walkthrough won’t indicate if the external entrance locks are in working order.
But she also noted that for investors looking to strike while the iron is hot, travelling to see a potential new purchase might not be feasible, in which case she recommended the use of a REBAA accredited buyer’s agent to conduct physical inspections.
“It’s vital that an investor thoroughly understands the additional financial outlay that may be required to ensure a property meets minimum housing standard tenancy provisions in that state or territory, which is only something that a licensed real estate professional can provide,” she said.
In fact, she noted that it’s part of REBAA’s code of standards for gaining entry into the organisation because “every single property that a REBAA accredited buyer’s agent recommends to their clients must have been physically inspected by an appropriately licensed representative”.
Not wanting to put a damper on the use of new and exciting tech tools, however, she added that it’s best when the new trends work in tandem with the old standards.
“While our industry welcomes the many advantages brought by advancements in AI and technology, a physical inspection will always remain the gold standard for thorough due diligence before making an offer on a property,” Jennison said.
“A physical inspection allows the buyer, or their representative, to experience the property and its surroundings firsthand – seeing, smelling, and hearing both the positives and negatives – something that can never be fully replicated by AI or technology.”
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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