What is a property report?
A property report can provide an estimate of value, using past and current sales data, as well as useful insights for almost any property in Australia.
Property reports can be used by anyone who might benefit from valuation information including recent sales, rental values, and suburb profile and price trends.
What does a property report include?
A property report will typically include the following information for a specific property address.
Property value estimate
A property report should provide a property valuation estimate—a major attraction of property reports. The property valuation figure is estimated based on a combination of different inputs depending on who issues the property report.
A property report issued by a bank might have different information than a property report from a real estate agent. Some property reports specify a range a property value could likely sit within, others provide a single estimate.
Property details
Often property reports will summarise the key attributes of a property like:
- Land area
- Living area
- Number of beds, baths, etc
There might be a few photos of the property, often taken from the last time the property was listed for sale or rent—so not always up to date.
Past sales history
An important guide for providing a valuation estimate is the past sales history.
The market history of the property might list the last known selling price and last known rental prices.
Selling activity of other properties in the neighbourhood are an important guide for the valuation estimate. A property report might show you the addresses of recent sales. Some property reports include an interactive map to allow the user to work through neighbouring sales.
Listings for rent and for sale
Rental information can be a useful measure in a property report. In addition to the valuation estimate an investor might gain insights into likely rental returns by looking at rental prices and vacancy rates for the property in question.
Local suburb statics
Most property reports offer a suburb overview of sales, rental activity, and price trends.
Free vs premium property report
Free property reports offer enough information to satisfy the curiosity for many enquiries. The insights are considered more high-level as opposed to being focussed on the detail. Consider it a useful starting point.
Premium property reports will offer more information than a free property report. They might delve into the specifics of the following where available:
- Target property
Extra photos and floorplans
- Past sales history
More detail on surrounding sales—perhaps specifying the discounts sellers are taking or the number of days properties remain listed on the market before selling.
- Rent information
More detail around rent. More tailored to investors who might like to perform calculations to estimate rental yield for an area.
- Suburb information
Suburb information can paint a picture of overall trends for a homeowner or would-be buyer. Areas this could cover are:
Demographics, proportion of owner-occupiers vs investors, land and school zones, and transport networks.
Property report vs property valuation
A property report is usually a software-generated estimate of a property’s value, together with an overview of property features and neighbourhood profiles. The publisher of the property report usually accesses this information from an online database.
Keep in mind a property report is usually free, often because the provider is using it as an engagement tool so you might consider their services in the future.
A property valuation on the other hand, usually arrives at a specific value determination, and is usually performed by an appropriately accredited valuer.
A property valuation focusses on more detail that a property report. It backs up any figures or statements with evidence.
A property valuation can include comments on unique or special features of the property as well as commentary on nearby sales. There can be often risk weightings given that provide an indication of different factors that might play into the valuation—like the broader economic climate.
Some reasons for seeking the more definitive property valuation as opposed to a property report are:
A property valuation can be for bank lending purposes
The lender may appoint an accredited valuer to perform a property valuation for their lending purposes—often referred to as a bank valuation. Sometimes lenders have enough comfort with a loan proposal that a bank valuation might not even require a valuer to visit the property.
A property valuation can be for private purposes
The independence that comes with an accredited person performing a property valuation can provide an important record or guidance for many scenarios. One example is when a buyer and seller look to establish a property value without putting it “on the market”—take the case of family buying from family.
A property valuation can be for legal purposes
Understanding property value as part of working through a relationship breakdown is another example of where you might benefit from a better understanding of property value.
A property valuation can be for tax purposes
There can be many tax-related reasons for having a property valuation done. Some tax rules require periodic property valuations to be performed as part of keeping financial records accurate.
What is a bank valuation?
Banks perform a property valuation for their own purposes.
When an application is made for a home loan, the lender will assess the strength of a borrower’s financial position as well as the suitability of the security—the property.
Bank valuations are a key part of the home loan approvals process.
If a bank valuation ends up being less than what the property is thought to be “worth”, then banks can use the lower amount when making their lending assessment.
Who can use a property report?
Anyone.
How useful it might be to you depends on your reasons for accessing it.
You might be looking to buy, sell or just be doing some personal research.
If a picture of a property tells a thousand words, then a property report that provides numbers can put some meaning behind them.
Here are some examples of who might access a property report and why.
Property report for homeowners
A property report for a homeowner might help them keep track of their equity position. Understanding their estimated property value and keeping track of neighbouring sales can serve as a good guide to understanding their property equity.
A property report could also be useful if a homeowner wants to understand their equity position with a view to doing some home improvements. While no one can ever guarantee a renovation will result in a change in property value, property reports might provide some comparable sales to assist with what improved versus unimproved properties are selling for.
Property report for buyers
Property reports can be used for specific or general price information.
Potential buyers can research specific properties that come onto the market. This can be especially helpful when you need comfort around any price you might offer on a property—especially when no price guide is offered by the real estate agent.
For potential buyers, property reports can be used to track suburb price movements for any area they might wish to move to.
I introduce buyers to mortgage brokers so they can get advice specific to their circumstances:
Property report for investors
Property reports can be used by an investor to understand the approximate value of their property portfolio—part of a general financial health check.
There might be valuable rental insights to learn from property reports. Understanding rental prices and trends might help a potential investor understand rental returns. It may also help existing investors understand where their current rental income sits when compared with the market.
Property report for tenants
Property reports might help tenants monitor market movements in rent, and maybe help in any lease-related negotiations.
Rental data in property reports can also offer tenants suburb specific insights. This can be especially helpful if tenants are considering moving to a new area.
Where is property report data from?
The data that goes into compiling a property report usually draws on multiple sources. Some key data sources are below.
State titles office
The titles office for each state holds a rich amount of property sales data as they process each property transaction when collecting their significant revenue source—stamp duty. Examples of information held by the state titles office could be:
- Sales price
- Changes of ownership
- Property features
- Land size
Anyone can request access to property sales and title records from their state titles office. Property reports often draw on this historical information from the titles office when compiling property report insights.
Banks
Australian banks are central to “a lot” of property-related transactions. Given they are also conducting valuations for refinances and renovations, they have a very up to date insights into property valuation information—including sales and rental valuations.
In addition to property valuation information, banks can also access real-time data by analysing customer accounts for any changes to rental payments. They are an increasingly useful source of real-time spending information—like a rental expense.
Real estate listings
Large real estate listing sites display properties for sale and rent from real estate agencies around Australia, so can be a natural convergence for all live listing information. Not all property listings will appear online and not all property listings make it to the dominant websites—but many do.
Large real estate listings websites can hold a lot of useful information such as:
- Asking price
- Initial asking price vs final asking price
- Number of listings
- Number of days on the market
How can I get a property report?
Anyone can access a property report, a few ways are listed below. Depending on the degree of insight you need (or want) you might be just as happy with a free property report. If you find you need more information—then explore premium property report options or engage a professional.
There can be differences in the information and presentation of property reports depending on where and when they are accessed. However, property reports are the same in many ways due to the many common points of valuation data.
Here are a few ways you can access a property report in Australia, including free property reports.
Bank property report – Free options
Many banks offer a free property report online, without the need to meet anyone too “salesy”.
If you want to access a bank property report, then have a look at the list of options I have researched here.
Bank property reports will vary in how much information they offer and how they provide it (interactive, online, pdf) but keep in mind it is essentially a tool for banks to create a relationship with you.
The commbank property value tool allows users to investigate neighbouring sales prices using an interactive map to learn more about neighbouring property valuation information and statistics.
Mortgage broker property report – Free options
Many mortgage brokers, small and large, can provide property reports so you can be better educated around property valuations.
Lendi, a big Australian online mortgage broker offers free property reports.
Your local mortgage broker may be able to produce a bespoke property reports for your circumstances.
Real estate agent – Free options
Real estate agents from your local area are likely to have access to property reports. They will also have insights only experience and local knowledge can provide. Property reports can be a great engagement tool for real estate agents to educate potential clients around property valuations.
Real estate listings website – Free options
Real estate listings websites might draw information from their own systems plus other available data to provide property reports for anyone.
realestate.com.au offers visitors access to both suburb profiles and estimated property prices for a specific address.
State titles office property report – Free and premium options
The property valuation information at your state titles office can be a good source of historical sales information.
A word of caution
Any disclaimers I have read from providers of valuation data are quick to remove themselves from any liability for accuracy and loss relating to the data. They compile and share the data. The accuracy cannot be guaranteed—what you do with it is up to you.
It is likely that no two property reports will give the same estimated valuation.
It might be worth getting your property valuation information from multiple sources and do as much research before you act. Consult professionals when considering buying or selling. Any decision you make will be yours and yours alone—along with the gains or losses.
Finally
Property reports can be a valuation guide but not something to base any investment or life-changing decisions on. Property reports can be full of useful insights to explore further with a mortgage broker, lender, or other professional.
