What is a property report and why do you need one?
If you’re thinking about buying or selling real estate, a property information report is a valuable tool to keep in your arsenal. Learn about property reports and how you can use them to your advantage.
What is a property report?
A property report details the property’s estimated value and previous sales history. It also includes information about the suburb or the immediate area. These reports are typically used by buyers and investors to research potential properties. Sellers also utilise property reports to guide their sale strategies and make their property more competitive on the market.
What information is in a property report?
Property reports may have varying information depending on the provider, but you can expect to see:
- Property details. This includes the address of the property, the number of bedrooms and bathrooms, the floor plan, pictures of the property, the size of the house in square metres, and other amenities.
- Land size. Most property reports will tell you the size of the land including an aerial view.
- Previous sales history. This includes how many times the property has changed hands, how much it sold for, and how many days it spent on the market.
- Comparable sales. The report looks into what houses or apartments have sold in the area that is similar, including what they sold for and how many days the properties were on the market.
- Estimated value. This value is based on recent comparable sales in the area. It also considers the features and amenities your property has to offer.
- Estimated rental value and vacancy rates. Some property reports will provide an estimated rental value and vacancy rates of the area.
- Suburb information. This includes broader information about the neighbourhood, median house prices, capital growth trends, property values over time, schools, and the like.
Using the data above, you’ll be able to gauge the market and see if the property you’re buying or selling will be a worthwhile investment.
Why do I need a property report?
With a property report, you’ll have a better understanding of the local real estate market. Real estate is an extremely localised sector where each suburb has its own market trends. Sellers and investors can create better business strategies while buyers can negotiate for better prices. You'll be able to gain valuable insight whether you’re buying, selling, or investing.
A property report also provides you with the information you need all in one place. No need to scour the countless data, graphs, and news sources to find what you’re looking for.
What can I do with a property report?
Use your property report to your advantage. Here’s what you can do with a property report:
- You can check when the best time to sell. Using the suburb information included in the property report, you can see when the most opportune times to sell are in that area.
- You can maximise your investment opportunity. Property reports may provide information on vacancy rates in the area, as well as the estimated rental value of the property. With this information, you can decide whether it’s the right time to invest in rental property in the area.
- You can find out the value of your property. As an owner-occupier, you’ll see if the home has increased in value since your purchase. You may have built up considerable equity. As a seller, knowing the value of a home is paramount to getting a proper sale price.
- You can use the property report to prepare for negotiations. If you’re a buyer, you can check the property report to see if a potential property is priced appropriately. You can use the data from the report to negotiate for a better price.
- You’ll know how much you need to borrow. You can get a property report for several properties to get an idea of how big of a loan you’ll need.
As you can see, a property report puts you in a strong position as a buyer, seller, or investor. You’ll have most of what you’ll need to make the most out of your real estate experience.
What are the limitations of property reports?
Property reports are incredibly useful for guiding buyers, sellers, and investors through their purchase or sale. However, these reports are primarily based on past sales which may not reflect the current situation of the suburb.
Using property reports as your only source of information may not be advisable. Always check the property report’s sources and see if they’re up to date. Factor in recent market changes and local real estate trends to get a more precise picture.
Prices on a property report should not be taken as a guarantee by both buyer and seller. Buyers may see higher prices if the demand for properties goes up in the area. Take note, the property report should not be taken as an official valuation of the property. If you’re a seller, you may still need to have to get a professional valuation to get an accurate price.
Where can I get a property report?
You can get a free property report online! At loans.com.au, we provide free property reports powered by CoreLogic to help you make a fully informed decision before buying real estate. For more information, you can talk to one of our friendly lending specialists at 13 10 90 or use the Live Chat.
About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.