An Important Document for all Buyers
Buying a new home may be one of the biggest financial commitments anyone makes in their life, and although there is much legislation in place which helps potential buyers make the right choice, the final analysis, and purchase, rests wholly with the customer. To some this can be a daunting prospect. It is not unknown for serious problems to arise within days of a transaction, and if a buyer has not diligently viewed and researched the property beforehand there are few opportunities for recompense. Even although a seller is obliged to disclose any known defects within a home it is not always prudent to expect an unbiased, open admission as this may conflict with the seller’s desire to gain the best possible price.
Get a Property Report
One of the most important documents a buyer can obtain is a property report. This will highlight not only what the estimated price of a property should be, but also the prices of other properties in the surrounding area. The main points covered in a property report are:
- Value Estimate – The average prices for similar properties in a given area are used to determine a property’s expected value. There are many variables which can affect a house price, and a general estimate can have a variance range of between 5 and 10%, but it does provide a good base from which to start a negotiation.
- Sales History – It’s always wise to look at how often the property has been sold. If it has changed ownership frequently that may be a sign there is an underlying problem which needs further investigation.
- All Previous Local Sales – It’s good to get comparisons of previous sales, even if other properties were not a match to the home in question. To have an idea of historic price changes in a particular area, and to identify, or confirm, any price shifts in an area, can be very useful knowledge in a negotiation.
- All Current Sales – All current sales will most probably be known to proactive buyers. Listings are easy to obtain from most estate agent websites. However, it is prudent to see all the activity. Not all properties make it onto an agent’s site, and there may be potential homes a buyer is not aware of. To have all the information at hand only helps to make a more informed decision.
- Overall Local Performance – It’s always a good idea to get a general feel for the local area. A property might appear very attractive, and the immediate surrounding may seem attractive too, but knowing how a suburb is fairing overall is crucial information. Some areas might be on a downturn, and it can be very difficult know the long-term effects a recession has on home prices. But being aware of the overall performance of a suburb or district over a period of time will give buyers the best chance to make an informed forecast about the area’s future standing.
We can provide free Comparison Automated Valuation reports to assist you in your buying process. So feel free to get in touch.
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
