If you’re thinking about buying or selling, a free online property report is an invaluable tool that could help you make a more informed decision.
Free property reports contain an abundance of information about the property you’re eyeing up (or thinking of selling), but that also means there’s a lot of facts and figures to wade through.
Here’s what you need to know about property reports and why you need one.
A property report contains information about a specific property including its estimated value, previous sales history, and details about the suburb.
Property reports are used by people who are thinking about buying or selling, as well as investors.
The information in a property report is likely to differ slightly depending on where you get it from, but the information you can typically expect to see includes:
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, whether there’s a car space, balcony, garden etc.
Land size: Most property reports will also tell you the size of the land including an aerial view.
Previous sales history: Details of any previous sales including how much it sold for and how many days the property was on the market for.
Comparable sales: Most property reports will also look at comparable sales in the area, so what houses or apartments have sold in the area that is similar, including what they sold for and how many days they were on the market for.
Estimated value: Property reports will generally give you an estimated value of your property based on recent comparable sales in the area and features of your property.
Estimated rental value: Some property reports will also give an estimated rental value, which is handy for investors looking to make their next property purchase.
Vacancy rates: Similarly, some property reports will also provide information on the vacancy rates of the area which is useful for investors.
Suburb information: Most property reports will also tell you broader information about the area, such as what the median house price is, what have been the capital growth trends, how many days properties spend on the market, how property values have changed over time, etc.
If you’re thinking about buying or selling, a property report can help you by putting you in a stronger position. For example, if you’re buying, a property report can tell you if the sellers asking price lines up with what the data for that suburb is, as well as comparable sales in the area.
Similarly, if you’re selling, a property report can tell you what comparable homes in the area have sold for so you can price your property more competitively.
Knowing the values of the properties you’re considering buying can also help you work out how much you can afford to borrow when applying for a home loan.
Finding all the data that’s in a property report can take a while if you try and do it by yourself. Property reports take all that information and summarise it for you in one place.
Here are the top five reasons you should get a property report:
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.
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.
Find out more about how to maximise the returns from an investment 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.
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.
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.
Not sure how much you're able to borrow? Find out your borrowing capacity with loans.com.au.
You can receive your free property report by checking out our property report page using the button below. Alternatively, you can call us on 13 10 90.
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.