Home reports are an essential item in the toolkit of every home owner, investor and occupant.
Giving you great information on your home and surrounding neighbourhood, a home report is critical in your assessment of whether to sell your owner occupied or investment property.
In addition, if you’re a buyer, a home report gives you a low-down on what is happening in the neighbourhood in terms of prices, rents, amenities and historical transactions.
Here are a few ways a home or property report can help you.
A good home and property report will always provide you with a chart of historical prices.
These prices can be for new-launch or resale units. In any case, they usually give you a picture on how the market has moved in the neighbourhood.
For specific projects, the chart ideally should consist of transactions since day 1.
For example, the following chart show transacted prices since day 1 for The Sail @ Marina Bay.
Some property reports such as those prepared by Squarefoot Research show the asking prices of units presently in the market.
These are indicated by the pink dots in the chart.
Comprehensive home and property reports should also give the recipient a list of historical transactions.
In the following example, 15 historical transactions are provided.
In the home and property report that PropertyInvestSG provides, up to 6 months worth of historical transactions are provided.
Historical transactions provide more color than the price chart because size, price per sqft, absolute transacted price and purchaser address information is provided.
This facilitates deeper analysis of the data that one may want to conduct when doing a comparables study.
Also read: Real estate investment sales at 10 year high
A comparables study is the estimation of the price of one’s unit (subject unit) by looking at historical transactions of units that are comparable to the subject unit.
Most homeowners and investors also appreciate the breakdown of buyer’s nationality in a home and property report.
This information is useful because when the owner or investor thinks of selling his or her unit, they can better target a segment of the market.
For example, in The Sail @ Marina Bay, about 60% of buyers are Singaporeans, 15% are permanent residents, 15% are foreigners and the remaining 10% are by companies.
When selling, the homeowner can use this information in the property report to target Singaporeans who form the bulk of buyers.
If the homeowner or investor would like to target permanent residents and foreigners, lesser resources should be spent there.
This is because the buyer profile based on historical transactions indicate that it may be less likely for permanent residents and foreigners to purchase a unit.
Also read: Increasing number of property agents in 2018
However, compared to a suburban condominium where the proportion of Singaporean buyers can be up to 90%, it may make sense for an investor to allocate more resources in targeting permanent residents and foreigners vis-a-vis a suburban condominium.
A good home and property report should also provide a snapshot of rental yields for previously concluded rental deals.
Using The Sail @ Marina Bay as an example again, the rental yield averages 3%.
This is based on the following table.
Rather, the rental yield is calculated based on a unit size range. The total number of rental contracts within that size range and the average price of units are taken and the rental yield deduced.
While not as accurate as having individual and granular rental transactions, this aggregation helps in providing a high level view of rental yields in the home and property report.
In this way, the homeowner and investor won’t be lost in the weeds of transactions, so to speak.
Price comparison with nearby properties
A home and property report won’t be complete without an analysis of the surrounding area.
Around The Sail @ Marine Bay are condominiums such as One Shenton, Marina Bay Suites, Marina Bay Residences and Marina One Residences.
The following table shows the overall average prices of all projects (including the subject – The Sail @ Marine Bay) and the minimum, maximum and average of each project.
For example, if one wants to sell The Sail @ Marina Bay, it would make no sense to price it similar to the surrounding projects.
A prospective buyer would look at The Sail and when compared with the surrounding projects, may find that prices are too high (or low, which would be good for the prospective purchaser but bad for the seller since the seller is not getting a ‘full’ price for his/her unit).
So the above chart in a home report would be helpful for the owner to find out the approximate range of prices his home can command.
Free home report
If you’re a homeowner or investor looking to sell your property/properties, or a potential purchaser, it would do you no harm to get a hold of a property or home report to assist you.
PropertyInvestSG has just the property report for you. Simply let us know the name of the condominium, apartment, HDB block number or name of landed estate you live in or are intending to buy, and we will provide you with a complimentary report.
If you want a free home report, contact us via the Home and Property Report page and you’ll be on your way to getting more out of your property sale/purchase.