When is a bargain not a bargain?

The real estate market is heating up across the country, but prices for multi-family dwellings in Northeast Ohio remain lower than the national average. With unemployment higher than the national average, many would-be homebuyers have had to remain renters longer than expected. The convergence of these two trends has made Greater Cleveland a prime area for Sight Unseen Purchases.

Many out-of-town buyers are purchasing duplexes, triplexes, and larger apartment buildings – sight unseen. Many times, the purchasers are not putting in any contingencies in the contract because they see the opportunity to run the building with a positive cash flow from the start! There can be many pitfalls in these sight unseen purchases. A couple of pointers to assist you in avoiding them are listed here.

In Ohio, most residential properties with 4 or fewer units require a disclosure to be completed by the seller. The purchaser must make sure this is completed in its entirety. If issues are mentioned in the disclosure, follow up with the seller to see what has been done to remedy the issue.

Many buyers rely on pictures or videos to make their purchase decision. Do your due diligence to ensure that the pictures or videos are current and represent the actual property being sold. Ask for verification of the date the pictures were taken and confirmation of the address. You don’t want to be relying on pictures from three tenants ago and the property is no longer in pristine condition.

Don’t rely on phone conversations. Have all conversations documented in writing, this will assist you, the purchaser, if a problem is discovered after the closing date and you need to take further action.

While sight unseen purchases are not the norm, Greater Cleveland’s current housing situation makes it a prime area for them. As part of the purchase process, you will need insurance on your new property.

To learn more about your property and liability insurance options, call the Trusted Choice Insurance Agents at Richey-Barrett and we will assist you in the process.