A property report can be incredibly valuable when buying or selling a home. Check out our top five reasons why you should get one.
What is a property report?
A property report contains a range of information about a property including:
Property details: The address of the property, the floor plan, the number of bedrooms and bathrooms, pictures of the home, the size of the house in square metres, and much more.
Previous sales: This will tell you all the details of previous sales of the home and how long it was on the market for.
Comparable sales: This will tell you what similar properties in the area sold for and how long they were on the market.
Estimated value: This will tell you approximately how much the property is worth.
Estimated weekly rent: This will tell you how much you can potentially receive in rent for the property.
Vacancy rates: Should the property have been rented in the past, this will tell you how long it sat vacant for, as well as vacancy rates in the area.
Suburb information: This will detail the suburb’s median home values, capital growth trends, and average time spent on the market.
Why should you get a property report?
Here are the top five reasons you should get a property report:
1. Find out when it may be best to sell
If you’re considering selling your home, a property report may be able to shed some light on when is the best time to do so. A property report will detail all the times your home has been sold and how long it was on the market for. You may find it took far longer to sell in the winter months than the summer months in previous sales, so it may be better to sell in the summer.
A property report can also detail comparable sales in your area. If properties in your suburb are taking very few days to sell, it may be a great time to sell also, as there is great demand from buyers. Inversely, if properties in the suburb are taking months to sell, it may be better to hold off.
2. Maximise your investment
If you own an investment property, a property report can assist you with maximising your investment. The report will detail vacancy rates in the area, so if the vacancy rate is low, below 2% for example, it may be a good time to increase the rent as demand is high. Additionally, the report will also detail comparable rents in the area. If you can see other investors are increasing rents in the area, you may be able too also.
3. Find out the value of your property
Finding out the value of your property has a number of benefits. As an owner-occupier, if your home has increased in value since you purchased it, you may have built up considerable equity. You could use this equity to renovate the property and further add to its value. Alternatively, you may consider selling the home and downsizing, and use the extra cash for a holiday.
As an investor, knowing the value of your property can also assist you to maximise your investment. If your property has increased in value, you may either decide to increase the rent, or sell the property for a profit.
4. Leverage when buying
A property report can provide leverage to prospective buyers when looking for a home. Sellers may list their homes at inflated prices but a property report can detail the estimated value of the home, which you can use when negotiating a price. You can also use the data from comparable sales in the area to further leverage the best possible price. Previous sales will also tell you how recently the property was sold and for how much for, as well the amount of days it was on the market. All of these data points can provide a huge amount of bargaining power which may allow you to bring the price of the property down.
5. Find out how much you need to borrow
If you’re not yet sure of how much you may need to borrow, a property report can point you in the right direction. You can get a property report for several properties, which will then give you an idea of the range of funds you will need to borrow from a lender to fund the purchase. This can also be a great way to budget when moving forward with making offers, so you don’t make an offer outside of your price range.
You can find out how much you can borrow with us here. If you would like a free property report from us, click here.
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