Property Report: What It Is And Why It’s Important

Whether you’re buying or selling a home, chances are you’ll want as much information as possible before closing the deal. The property report does just that. As an important part of the home selling process, this document provides critical information for a home’s buyer, seller, real estate agent, lenders and anyone else involved in the process.

What Is A Property Report?

A property report provides a detailed and customized report on a property’s historical data and current conditions. This in-depth profile is an important document for homeowners, buyers, sellers and real estate professionals to understand a home or property’s history.

A property report reimagines how you can learn about your home value. It uses real-time and historical data to give you a clear picture of what housing market conditions are currently like in your area, how much homes like yours are selling for and how much you could reasonably expect your home to sell for if you were to list it today.

Additionally, all of this information can help you determine the best time to sell a house in your area. With this information, you can maximize the amount you can get for your house.

Types Of Property Reports

There are a couple of different types of property reports, each of which is useful for a different purpose:

• Real property report: Also known as a surveyor report, a real property report is a drawing of a property that identifies its boundaries, easement rights, water on the property and any other important characteristics.
• Title report: A title report outlines the history of the property and its legal details. The report will show the previous owners of the home, as well as who currently owns it. And one of the most important things the property report shows is whether there are any liens on the property or disputes over its ownership.

What’s Included In A Property Report?

The property report contains critical information for both buyers and sellers. Here’s what you can learn from this type of report:

• Property details: This section of the property report summarizes its basic details, including its floor plan, bedrooms and bathrooms, square footage and more.
• Land size: The property report shows you the property lines and the lot size and often includes an aerial shot.
• Sales history: A property report shows a home’s entire sales history. It includes information such as the date the home was sold, how long it was on the market and how much it ultimately sold for.
• Comparable sales: When you’re buying or selling a home, comparable sales are critical. The comparable sales help you determine what a fair price is for the home.
• Estimated value: The estimated value is one of the most important pieces of information about a home that’s listed for sale. The estimated value is usually found by looking at comparable sales and adjusting based on the property’s distinct features.
• Time to sell: As a property owner, a report may be able to tell you how long you can expect your home to take to sell, which will be valuable information when planning for a sale.

Benefits Of Getting A Property Report

Whether you’re buying a home, selling a home, or are a real estate agent helping your clients to buy or sell their homes, more information is always better. Here are some specific benefits a property report can provide and why everyone involved in the home buying and selling process might want one:

• Provide a closer look at the current real estate market: A property report doesn’t just provide information about a specific home but also about the real estate market in general. You can see how long homes are sitting on the market and how much comparable properties are selling for.
• Provide insight on needed home improvement projects: As a seller, it’s important to know what you can do to get the most money for your home. A property report can help identify home improvement projects that add value to your home and that you may want to complete before putting the home on the market.
• Provide insight into the best time to sell: When you’re selling a home, deciding the time of year you put it on the market can make a big difference in how much money you’ll get. A property report could help you determine the best time to sell to maximize your profit.
• Set pricing expectations: A property report can be invaluable when it comes to setting pricing expectations for a home. As a seller, a property report can help you determine where to price your home. And as a buyer, a property report can indicate whether the list price is reasonable.
• Determine borrowing capacity: A property report isn’t only valuable when you’re considering selling your home. As a homeowner, you can also use a property report to help you determine your borrowing capacity if you’re considering refinancing – especially if you’re considering a cash-out refinance.

How To Get A Property Report

Real estate agents often put together property reports when preparing to list a home for sale. They use a combination of private and public records and compile all the information both the buyer and seller could need. These reports – or portions of them – may even be included in real estate listings.

You can also get property reports from third parties. For example, a Rocket Homes℠ Property Report can tell you as a homeowner how much your home is likely worth and the estimated best time to sell it.

Property Report FAQs

Below we answer some frequently asked questions about real estate property reports.

How does a property report work in real estate?

Property reports provide critical information about a home to both the buyer and the seller. Property reports, which are often compiled by a real estate agent, share basic information about a property.

What are the potential limitations of a property report?

As a seller, a property report may not be entirely accurate if there aren’t any good comparable sales. And as a buyer, a property report may not show all potential problems within a home, especially if a seller doesn’t know about them.

How do I find the current value of my home?

There are several ways to find the current value of your home. You can use an online valuation tool and research comparable homes in your area. For a more accurate valuation, contact a real estate agent or appraiser for a professional opinion.

What’s the difference between a property report, home inspection and home appraisal?

A home inspection is when a professional inspects a home to see what condition it's in. An inspector looks at everything from the roof to the foundation. They provide this information to the buyer. A home appraisal is a means of determining the value of a home and is usually done to help the bank determine how much it's willing to loan a buyer. A property report provides buyers and sellers a snapshot of the home’s property details, estimated value, sales history and land size.

The Bottom Line

Whether you’re buying or selling a home, knowledge is power. As a homeowner, a property report can give you all the information you need about getting the most money from your home. And even if you aren’t planning to sell, a property report can be useful just for yourself.

If you’re planning to put your home on the market, connect with a real estate agent today to get a property report and start preparing to get the best deal possible.