Last week we spoke about RP Data property reports, so let’s pick it up from there. So by now I’ve sent you the report and you’re thinking, how do I read it and what does it all mean?

The property report is usually eleven pages long and includes crucial information about the property. Firstly, it includes information about the property i.e. land size, number of bedrooms and bathrooms and car spaces. It also includes an indicative valuation estimate made up of algorithms and pre-set calculations etc. This information should not solely be relied upon, as the data used to come up with the estimate is generally 3 months old.

So what information is important for you to know?  

• How long the property’s been on the market?– If a property has been on the market for a long time, it usually indicates it’s not priced correctly and you may be dealing with an owner that doesn’t want to price it at true market value – this could give you an edge when putting in an offer.
• When was the previous sale of the property?– If it was recently sold, ask yourself and the real estate agent why the current owners are selling so soon, especially in a slow market. Is it because there’s an issue with the property or could it be that they’re currently going through a personal situation where they have to sell?  i.e. divorce.
• What was the original listing price and has there been a reduction? – This indicates that the owner is aware of current market conditions and is willing to come down in price to meet the market.
• How many comparable sales are there and what are they? – This is probably the most crucial piece of information to look at. This is true data and shows what the market’s willing to pay and what someone’s willing to pay is what dictates the value of an asset. This applies not only to property but to an asset that’s sold on the open market i.e. cars, art, anything on eBay.
• How many comparable properties are currently for sale? – This information will help you see how dense the market is or you might even see a property on the report that you haven’t come across yet in your searches.
• Last 12 month data on the local area – This information is good to track trends in the market, see how many sales there have been and if there’s been an increase or drop in the market. Currently we’re seeing a downward trend in most areas of Sydney.

We provide property reports for all our clients, so please don’t hesitate to contact me if you’d like me to provide a property report on any property you’re interested in purchasing or if you’d like a report on property you already own. Just reply to this email.

“I have the simplest tastes. I am always satisfied with the best” Oscar Wilde 

Thank you for reading.