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Kafeel Chaudhry
Broker

RE/MAX Active Realty Inc.
Brokerage
Independently owned and operated.

200 Matheson Blvd Suite #202, Mississauga, ON L5R3I7

Office 24 Hours: 905-290-6777
Mobile: 416-786-4300
Fax: 905-290-6799

 
How to interpret a property sales report

This guide helps you interpret your property sales report, and guides you in the questions you should ask yourself based on the information in the report.

The purpose of a property sales report A property sales eport is a report that lists sales data of comparable properties in a particular area. Depending on the provider, it will generally list historical sales in the area as well as what’s for sale now. Typically, reports include information on the asking price, final sale price, length of time the property was on the market, and the property’s main features (such as, for instance, the number of bedrooms, bathrooms). Some reports will also include photos of those properties.

Questions to answer from the report

1. What did the vendor pay for the property and how long ago did they buy it?
Finding out what the vendor paid for the property can provide interesting insight into the property and the vendor’s intentions. In most cases, the vendor would have bought the property a few years ago and (hopefully!) paid under the current asking price. Look at the increase in value over that period and think about whether that is a reasonable increase. If the vendor only bought the property recently, and is now selling it for much more or less than they paid – ask why? Put yourself in the vendor’s shoes and think about how they must be approaching the sale, and then use this to shape your negotiation tactics with them.

2. How long has the vendor had the property on the market?
Another interesting question is how long the vendor has been trying to sell the property – which most property sales reports will show. If the property has been on the market for a long time, start asking questions as to why? Remember that property prices are a function of supply and demand, and there could be a myriad of reasons as to why the property hasn’t sold. Your investigation might reveal that the vendor has simply been asking too much, and been unwilling to negotiate down or alternatively there might be some reason why prospective purchasers have been few and far between. Again, use your knowledge to shape your negotiation

3. What did the neighbours property sell for?
Property sales reports will also reveal the sale prices of neighbouring properties. When comparing these prices to your proposed property, remember to compare apples to apples and look to compare between properties with similar numbers of bedrooms, bathrooms, land sizes etc.

Note that it can be difficult to tell from the sales report whether the property has been renovated or not, which could cause a large difference in price. The date of the sale is also relevant; place more importance on recent sales rather than older ones which may reflect a property market that no longer exists.

4. What did comparable properties in the local neighbourhood sell for?
Review sales in the neighbourhood for comparable properties but remember that the further you get from your proposed property, the more likely it is that other factors may come into play which could distort the comparison. Has the view changed? Are those  roperties closer to major roads?

5. What comparable properties are currently for sale?
A typical property sales report will also include details of houses on the market now. This can be just as interesting as historical sales in helping you determine the value of the property you are looking at buying. It may identify houses for sale in the same street, similar in features, but with different asking prices. It may also identify potential purchases for you that you hadn’t seen before. 


General Disclaimer: this guide is published for your information only. It is published with due care and attention to accuracy, however we accepts no liability if, for any reason, the information is inaccurate, incomplete or out of date. Therefore, before relying on the material, users should independently verify its accuracy, completeness,relevance for their purposes and that it is up-to-date. Before any action or decision is taken on the basis of any material in this guide, the user should obtain appropriate independent professional advice. To the extent permitted by law, the publisher excludes all liability to any person arising directly or indirectly from using this site, and any information or material available on it.

 

 


Recipient of Re/Max Diamond Award 2017, Top Producer Award 2017,
Number One 1 - 1st & 2nd Quarter 2012 in Entire Canada

Number three 3 - Worldwide out of 90 Countries Re/Max International.2012

Number .1 New Sales Project Award 2010/2011/2012 | Top Producer Award 2010 - 2017
Diamond Award Holder | Hall of Fame | Chairman Award Holder | Million Dollar Club 2009 / 2010 /2011 / 2012 / 2013 / 2014 / 2015 / 2016 / 2017
Paul Schram Award 2005 (President - Etobicoke Chamber of Commerce) – Businessmen of the year, | CEO CMC Homes Inc.| CEO Woodstock Medical Centre

Kafeel for Investments © 2011
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