What is a Property Analysis Report?

Jan 6, 2016

Have you ever considered buying or selling an investment property? Do you know what the process would be to gather the details of the property you are considering buying or selling?

Properties require more or less analysis depending on their size. For example, commercial real estate properties are valued differently than residential real estate properties. The value of larger investment properties is directly related to how much income/profit it will produce. Getting all the financial details in order is where a property analysis comes in.

A property analysis report provides a lot of useful information including:

i. A market analysis of demographic, socio-graphic and geographic data.

ii. Physical and economic characteristics of the property such as the physical design, square footage, etc.

ii. Purchase pricing including basic cost information, renovation costs and more.

iv. Operating expenses to maintain the property such as utilities, property taxes, insurance, repairs and maintenance, licenses, fees and advertising expenses. (Operating expenses directly affect cash flow and profitability.)

v. Income information about the revenue the property produces, such as rent receipts.

vi. Competitive information on how the property compares to other relevant properties in the local market such as age, condition and amenities.

vii. Financing specifics including any loans, the total loan amount to finance the property, down payment sums, interest rates and closing costs.

A property analysis report is a valuable tool to understand how your property stacks up in the marketplace. It is also important when making any financial decisions on whether to buy, hold, or sell. A proper analysis takes research including finding information from multiple resources and making sure all the gathered data is accurate. If you are looking to get a property analysis report done for an industrial building, retail property or office building in the Chicagoland area, contact us to benefit from our experience and expertise or fill out our form here for a FREE commercial property analysis of your investment property. We’ll do all the heavy searching for you and present you with an official analysis for your property.