Real property analysis and reports are tools investors must have prior to making investments. As an investor, having accurate information is essential to make investments that are profitable. These reports outline the specific details of the value of real property. An investor protects profits by making the most of real property analysis and reports.

Making the most of real estate property analysis requires doing some leg work to ensure all information is gathered. Some investors hire professionals to do this, others do the work themselves. Use these reports for as many needs as necessary. When considering these reports, keep the following in mind:

1. Determine the accuracy of any resource or professional providing property reports.

2. Use a property analysis report yearly to access current value and value changes.

3. Get property analysis information from news and market trends.

Action Steps
The best contacts and resources to help you get it done

Hire assessors to determine value for sale

A comparative real estate property analysis is created to determine the list price of property by a real estate agent. This tool is an excellent resource to help determine the price the property will sell for. Those selling investment properties will likely need to have these created.

I recommend: Obtain this real estate investment property analysis from a trusted real estate agent. The National Association of Realtors provides a good deal of information on determining listing price through real property valuation. LoopNet is a source of information regarding valuation. This tool can be used by the investor rather than his having to hire a real estate agent.

Find real property analysis for taxation requirements

A real property report may be required from investors by the government for tax valuation. Work with a tax accountant for such investments prior to obtaining these documents. Learn about requirements for tax reporting through real property reports at the time of investment rather than later.

I recommend: Gather real estate property reports from trusted sources for tax filing requirements. Each state and some municipalities require such filings. Visit Oregon's Department of Revenue to learn more. Michigan's Department of Treasury provides this information. New York's Offices of Real Property Services outlines this state's requirements. The Internal Revenue Service also provides detailed information regarding tax requirements of real property.

Utilize online property analysis for preliminary research

Investors planning to make investments should use free, online resources to gather more information. Real property analysis providers can be used to back up this information after the investor has done basic research. This allows for a lower cost and more comparison handled by the investor rather than paid professionals.

I recommend: Locate real property report providers after initial research has been completed. Free online tools can serve as initial research for potential investments. Zillow provides for research tools to compare property values, market trends and even interest rates for investors of residential and commercial properties. NetGainRealEstate offers an assortment of tools and information for investors to use to gauge real property value.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The best source of information is a real property analyst, who is a professional paid to value property. When hiring them, learn about their experience and training. Learn any affiliations they have with investment firms.

Real estate property reports and real property analysis must be recorded and audited in the new age of accountability. Since the advent of the Sarbanes-Oxley act in 2002, businesses face stiff penalties for not reporting accurate figures in their financial statements. While a property analysis report can give you approximate value figures and provide a real estate property analysis of future potential earnings, you must be on target with your real estate property reports.

Comparative real estate property analysis is a good tool to assess the value of a potential purchase and does not have to be as accurate as your stockholder property reports. A real property analyst typically can provide both accounting and projection real estate property analysis, an added safeguard to your CPA and accounting department’s reports.

1. Bring in real property report providers at least once a year

2. Hire assessors before making real estate investments

3. Manage your assets with a real estate investment property analysis

Action Steps
The best contacts and resources to help you get it done

Back up your finance team with real property report providers

While your financial department may be capable of reporting your real property assets, save time and resources, and possible fines, by bringing in an outside auditor to check your real property analysis and reports. Your stockholders will surely appreciate the effort when your CFO signs off on the annual statement. Your team may not need any corrections, but it never hurts to have a third party look over your books.

I recommend: Real Capital Analytics is a real property analyst firm that is dedicated to exact quotes and figures in their methodology and relationships. Each transaction is reviewed by at least two experienced researchers in their firm before you receive the final real estate property analysis. Appraisal Economics is one of the full-service real property analysis providers that can cover all your assets, from equipment valuation to property analysis.

Bring in the appraisers before you meet the assessors

While you may have a good eye for real estate investment property analysis and have made some good decisions in the past, it never hurts to cover yourself with a professional comparative real estate property analysis. Before you make a large residential or commercial property purchase, get a real property report.

I recommend: Find a real property analyst through the Appraisal Institute. Members of the Institute hold professional designations that are required by the organization. National Real Estate Information Services has been providing real property analysis for more than 25 years. Each approach is customized to the client.

Keep track of property reports

Large corporations have entire departments dedicated to managing the real property assets of the company. They stay on top of market shifts and produce regular real property analysis and reports. While the small to medium size businessperson may not have access to the same resources, there is enough technology available now that can serve up real estate property reports and real property analysis quickly and efficiently.

I recommend: Sunflower Systems has asset management software for all your company needs. It is designed to increase your physical and financial. Maximus provides software that can help you manage your inventory, records and all other real property analysis and reports.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  While you don't have to follow the advice of outside appraisers and consultants, don't underestimate the importance of the real property report. Retain all documentation you've paid for and at least use the property analysis report for audit and tax purposes.

Real property analysis and reports are required for various tasks. These reports are used to determine the value of a business' real estate or other real property. This includes land, all improvements to the land such as buildings and machinery and property rights. In business, these reports are used to determine the value of the property for sale, for loans and to report to the government.

Learn about real property analysis and reports basics first. Real estate property analysis is often done by professionals, but basic information can be obtained by the business owner as well. By often examining the value of the business' property, the business can make proper use of that value. When considering this analysis and reporting, keep the following in mind:

1. Use professionals to get thorough, legal property analysis.

2. Find real property analysis reporting tools available to determine changes in the business' property value.

3. Hire real property analysis providers to keep tabs on the best way to use the property's value including investing in it.

Action Steps
The best contacts and resources to help you get it done

Use a comparative real estate property analysis to determine value

This type of property analysis report is key when investing in real estate, selling real estate or other real property, or otherwise investing in it. It is an informal assessment of the market value of the property. It is generally used to get a reasonable listing to be used when the property is placed for sale. It can be in use in other ways as needed, to establish a base price for the property.

I recommend: Obtain these types of property reports from trusted real estate agents. They have the tools and resources to formulate the most accurate comparative analysis reports. Use the resources at the National Association of Realtors to learn more about these reports and to obtain them from trusted agents. Learn more about the process and report at RealEstate-Montreal. This thorough information is the same for the U.S. market.

Locate online property analysis for basic information

Real estate investment property analysis is possible through the use of a variety of tools online. Learn the current value of real estate by using these free services.

I recommend: Gather real estate property reports from several providers to compare. Mortgage-Investment offers a good deal of options, resources and information as well as tools to compare properties. Simple services, such as Zillow, can offer a variety of information including the current value of property and the fluctuations in the local market.

Get a real property report authenticated by professionals

A real property analyst can provide in-depth information and education on where investments should be made. While preliminary resources like those above may be in use initially, only trusted services should be in use for actual investments.

I recommend: Work with real property report providers whenever possible to determine the investment potential of any piece of property. Commercial Property Appraisal provides a great deal of information and resources regarding the valuation of business and real property. Property Valuation Advisors offers a number of resources for property investment reports and appraisal tools.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Assessors may provide the investor with very specific information regarding the potential investment they are making. Yet, it is very important to realize that, regardless of any information provided, there is still a large amount of risk associated with any investment.

Real property analysis and reports are essential tools for any individual looking to make smart investments in the real estate market. A detailed analysis provides in-depth information and historical financial data about a specific property to help the investor decide if a purchase will be profitable. Understanding the key terms and lingo used in real property analysis and reports will maximize your chances for your real estate investment to be wise and profitable.

Action Steps
The best contacts and resources to help you get it done

Comparative market analysis

A comparative market analysis, or CMA, is performed by a real estate agent. This informal analysis is done to obtain a listing price in order to put a property up for sale. It is performed by reviewing similar properties recently sold. A CMA is a vital piece of information for real estate investors, since it can greatly alter their bottom-line profit.

I recommend: James Kimmons, who is About.com's real estate business guide writer, does an outstanding job explaining the CMA process.

Revaluation analysis

Several factors associated with a group of properties are studied when a revaluation analysis is performed to see if it alters a property's assessed tax value. Information pertaining to a revaluation analysis is important to include in a real property analysis, since property taxes can greatly impact the cost of a purchase.

I recommend: Charmeck, a website operated by the offices of Mecklenburg County, NC, discusses the process for the county's massive property revaluation analysis to be conducted for the 2011 tax year.

Investment set codes

Investment Set Codes, usually referred to as ISCs, are overall capitalization rates. ISC figures reflect what is expected to happen in the real estate marketplace for that year. The values listed in the ISC codes are used when conducting real estate appraisals. ISCs are conducted for most geographical areas, and are based on information gathered from banks regarding mortgage interest rates, loan-to-value ratios, and terms.

I recommend: New York's Office of Real Property Services includes an explanation of its state ISC codes and how they evolved in 2008.

Median sales trend

Understanding an area's median sales trend is very useful for a real estate investor, as it helps to find the true middle range of property values in an area. The median sales trend is often a more useful figure to have than an average sales trend from an analysis standpoint, because extreme high and low sales tend to throw averages off.

I recommend: Submedian, a San Francisco housing blog, discusses the pros and cons of using median sales trend figures to make real estate investment decisions.

Tax mapping

Local governments are legally required to have up-to-date tax maps. Tax mapping shows the true size, shape and geographical features of every parcel in a particular tax assessing unit. These maps can provide a potential investor with an accurate representation of a property without having to look at an official survey or review the property on foot.

I recommend: Internet Business Systems' GISCafe features an article to help people understand the reasons behind -- and the processes involved in -- tax mapping.

Appraised value

A property's appraised value is determined by a licensed state appraiser. The appraiser considers recent comparable sales, an analysis of the property's features -- like its square footage -- and takes into account the appraiser's knowledge of the subject matter and the area. The property's appraised value is an essential figure to have in order to secure financing.

I recommend: The Truth About Mortgage explains appraisals and appraised value.