What is a property report, and why is it important for anyone buying or selling property? Here we take a deep dive and discuss everything you need to know about property reports. This includes its definition, a summary of what’s included, why it’s important and how you can get your hands on a free property report.
What is a property report?
A property report is a document outlining information about a specific property. This includes its estimated value, its listing history and suburb details. It’s beneficial for buyers, sellers and investors.
What is included in a property report?
The information can differ depending on the source. But here’s a summary of what you should expect to find in a property report.
Property details
This is a breakdown of your property and includes the following:
- The property address
- Images
- The land and property size
- The property’s condition
- A floor plan
- Its major features, like if there’s a balcony, garden or parking.
- The number of bedrooms and bathrooms
Estimated property value
The estimated property value is based on the property information, recent sales data and current market conditions. Sometimes the estimated property value will be shown as a range with a low, middle or high confidence rating. This score depends heavily on available data.
The property’s sales history
The property report will outline the property’s previous sales history. This includes market data like the final sale price, the date of the sale and the days on the market. It’s helpful to see how property values have varied over time. This section may also include the property’s rental history.
Comparable sales data
This includes information on similar properties in the area that have sold recently. The section may highlight the number of sales, the final sale prices and the median days spent on the market. It may also include similar rental properties and vacancy rates, which is helpful for investment property owners.
Suburb details
A property report may also contain important information about the broader area. This includes local schools, amenities and future planning information. However, it might also outline median house prices, capital growth trends and how property values have fluctuated over time.
What is the importance of a property report?
A property report is helpful for both buyers and sellers.
For buyers
A property report can strengthen your position as a potential buyer. It holds key data to give you a better idea regarding the property’s market value, so you can ensure the seller’s price is in line. The additional important information about the suburb ensures you feel confident in your purchase decision.
The report is also useful for buyers applying for a home loan as you can easily determine how much you may need to borrow.
For sellers
A property report is important when selling a property because the estimated property value and comparable sales data help you set a competitive sale price that aligns with current market conditions.
You can use the additional information provided to your advantage as well. For example, if several similar properties have recently sold, it might be the perfect time to sell. In contrast, if comparable homes have taken months to leave the market, you might want to wait.
A property report can also help you maximise your investment if there are low vacancy rates and similar properties have higher rent.
Property reports are equally important to buyers and sellers because they collate all the information you could need about a specific property in one place. This saves you time, money and effort.
Are there any limitations to property reports?
The principal limitation of property reports concerns the information provided. It’s an automatically-generated report completed online that uses only the property information available. If some data points are missing, it may not paint the most accurate picture.
This might be because no comparable properties have sold recently, and there is limited data if it’s a newer suburb or the property might have been freshly renovated. Cumulatively, this can affect the estimated value.
How do you obtain a free property report?
Most home loan lenders, real estate agencies and financial institutions offer free property reports. This is in the hopes that you use them for your future needs.
Another paid option is via CoreLogic, the leader in property data in Australia. This includes all of the information above, like sales and rental history, as well as suburb and property data. They promise the data is up-to-date at the time of processing.
Is there another option besides a property report?
Besides a property report, you can get a free property appraisal or a property valuation or use our free online property valuation tool.
Property appraisal
A local real estate agent conducts a free property appraisal. They’ll tour your home and compare the property’s features to the data listed above, i.e. comparable sales and suburb information, to give you an estimated value. Find the best local agent in your area with LocalAgentFinder’s free comparison service.
Property valuation
A property valuation is very similar to an appraisal. However, it’s conducted by a formally qualified valuer, and the succeeding report is legally binding. For example, a bank or financial institution might ask for a valuation to approve a home loan.
Free online value estimate tool
Our free property value estimate tool is very similar to a property report. We crunch the numbers and provide you with a summary that includes the following:
- The estimated property value range and a confidence rating on selling within that range.
- Trended recent sales data over 12 months includes the distance of the sales to the property address, the median sales price, the number of properties sold and the average days spent on the market.
- Additional real estate statistics like growth data and the most common type of property sold.
Click here to visit our website and give our free property value tool a go today.