In this post, we discuss the different value propositions that are offered by real estate listings, on both a commercial and residential level. Although there are limitations to what customers can and can’t do, some of these considerations can make the difference between a forever property and a temporary solution.
Property information is commonly found in many kinds of reports and across many industries in the real estate business line. Commercial and residential properties share many characteristics that can be assessed, and can create additional value for occupants and lenders alike.
Commercial Real Estate:
In the commercial industry, commercial reports are required and often include Property Condition Reports, Phase I Environmental Site Assessments, Specific Plans, and in the case of large properties, General Plan or Zoning Amendments. This information is often in long form and can be exclusively termed for banks, developers, or other lenders that want to have technical specifics, but may not include specific information about the actual existing disposition of structures, or environmental conditions that would be of interest to residential buyers.
This makes these reports impractical from a residential customer perspective. However, much of the information in a Phase I Environmental Site Assessment may be of interest to a prospective buyer, but may not be easy to read. Some of the most important information includes the following:
Zoning Codes and Regulations
Property development status and property size
Ownership information and sales history
Environmental history and possible hazards reports (Phase I ESA)
Proximity to Amenities and Community Assets
Assessors Parcel Number(s)
Potential for natural hazards and proximity to hazardous sites
Interior Square Footage and plans for future development
Neighborhood quality
Residential Real Estate:
Residential properties often require different, but similar information in order to convince prospective buyers of the purchase potential. Information such as the following can be considered crucial to help prospective buyers make better decisions.
Property size and development potential
Property zoning code
Property value and potential future value
Neighborhood Aesthetics
Aesthetic criteria (like lighting, solar aspect, curb appeal, and property condition)
Environmental setting and location
Potential cost for property maintenance and rehabilitation
Landscaping potential
Proximity to community amenities and basic necessities
Environmental Context (location based features)
In most cases, there is a fair amount of information that can be obtained with easy google searches or basic research. In fact, most listings for real estate include much of this information. However, many specific pieces of information remain elusive or omitted and can easily be overlooked or not included in these real estate reports or listings. For instance, in the real estate Multiple Listing Service (MLS) system, tons of environmental information is strangely absent. Some of this absent information could make all the difference for a prospective buyer when considering a long term value proposition. While some of the information is provided through basic descriptions of the property, much of the information can be elaborated upon with simple searches.
The purpose of this post is to identify common reports that have crossover and to develop a list of potential sources for easily accessible, but crucial information.
Mortgage reports often contain information about credit risk, insurance exposure points, market trends, and more; however, the required by banks is often not inclusive of aesthetic information or environmental context. While property listings like those found on Zillow or Redfin only include basic information about the appearance of property.
Generally, the information included in a Zillow or Redfin or Landwatch listing includes the following:
Address
Listing Price
Number of Rooms
Building square footage
Photos of the property
Neighborhood information
Basic on-site property description
Recent sales and market value
Notice, very little of this information includes climate based data, such as weather phenomenons, environmental or landscape conditions of the property, the potential for hazards or environmental risks, average temperatures or wind patterns, proximity to noise sources, like railways, airports, farms, or the economic conditions of the community.
From a residential customer’s perspective, the amount of road traffic, or the distance to amenities like grocery stores, medical facilities, or emergency response teams could mean the difference between purchasing one property or another.
In the context of additional development, some neighborhoods have Home Owners Associations (HOAs) with fees for landscaping and common area maintenance, while others have no restrictions on the types of buildings that can be constructed on a private property. In many cases, cities have general plans or specific plans for portions of the city to stimulate economic activity that are not discussed by property listings seen at the prospective buyer level. However, the plans for future development in a community can be essential for the quality of life for a buyer or resident.
When excess noise from construction interferes with the sense of solitude that is sought by a buyer, the restfulness and hominess of a residential home can be severely impacted by.
Questions that would help both commercial and residential buyers make better decisions can include those about the future of the community as a whole as opposed to just those about the subject property or project site by itself.
This is where the Greenisms Real Estate Strategy Tactics (REST) survey comes in. If you are looking to bolster your property listing, or provide information over and above what would be sought by a bank or an inspection agency, look no further than the REST survey.
Real Estate Strategies involve short term and long term visions that customers have. When considering the value of a property, the future matters. Strategically considering the climate, potential hazards, insurance ramifications, and zoning limitations is essential.
Thanks for reading,
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