Digital transformation in real estate research brings data to you

The warning ‘caveat emptor’ or ‘buyer beware’ is tempting to ignore when you’ve fallen for a house. But due diligence is a must when buying real estate.

Residz Team 4 min read

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The warning ‘caveat emptor’ or ‘buyer beware’ is tempting to ignore when you’ve fallen for a house. But due diligence is a must when buying real estate. With so much money at stake you don’t want to buy into trouble. Luckily, real estate research has undergone a digital transformation and data is more accessible than ever. You may never need to visit council offices or spend hours on the phone. Most information can be found online in seconds or minutes, and it’s mostly free.  

Lifestyle Location

Lifestyle factors are at the top of most buyers’ wish lists, so it pays to search deeper into information about the neighbourhood. How far is the property from the beach? Are there cafes, restaurants, takeaways, pubs, medical services, groceries, and malls nearby? Buyers will want to know what is within a five or 10 minute drive. Sellers should not assume buyers know these things, and should include “lifestyle factors” at every turn when marketing their property. Residz.com has this information that buyers and sellers can access for free in seconds.

Surrounding housing density

Some people like living in a densely-packed suburb for its villagey feel. Others prefer to have space. Online research tools include Google Earth and Residz.com. The latter is a research website that allows you a bird’s eye view but with many added advantages. For example, you can click on the property and neighbouring homes to see land size, and if there are any development applications for alterations and additions.

Risk to property and self

Buyers doing due diligence will need to research the potential bushfire risk and potential flood risk of their chosen property. A look at crime trends in an area is also advisable, as this may affect the cost of insurance premiums. While local councils and state governments can provide this information online, it’s all in one spot at Residz.com. Residz.com also links to organisations offering subsidence reports, and land contamination risk certificates.

Heritage listing

Buying a property and finding out they can’t renovate or add an extension is a shock for some buyers. Even properties adjacent to heritage-listed properties may need approval from a local council heritage officer. In some states and territories, the real estate agent has to declare if a property has a heritage listing, but not all. You can find out the status of your chosen home at state and territory heritage registers:

A heritage-listed home may be subject to lower council rates and land tax, and it can be sold or leased. Any proposed renovation works will need to be discussed with your local council.

Traffic and traffic noise

Buying or selling on a busy road is going to affect the sale price of the property. Most people prefer less noise and traffic so estimates put the penalty of a main thoroughfare as high as 10% to 20% to the value of a home. Buyers may want to check out the real time traffic tool for their chosen property at Residz.com. Sellers may also wish to use the tool to adjust their open inspection times.

Internet speeds

Remote and hybrid work has made internet speed even more of a consideration than it was before Covid. Group video meetings require a high speed internet to avoid dropouts. Residz.com lists the type of internet connection and the maximum upload and download speed for nearly every home in Australia.

Tech Advisory recommends for Zoom:

For 1:1 video calling:

For group video calling:

The site also lists the speed requirements for Google Meets, Skype, and Microsoft Teams.

Demographics - who lives in this area

People who live in diverse neighbourhoods are shown to be more helpful, according to five studies cited in The Conversation. You can spend time getting to know an area, or you can ‘cheat’ by looking at the Australian Bureau of Statistics demographics data on ethnicity, age, and family size. Typing in an address on Residz.com gives you this information instantly in one place.  

School catchment zones

If you have or plan to have children, a good thing to check is school catchment zones. This can be the difference between sending your child to a school with a good reputation, and one without. While there are many factors in choosing a school that’s right for each child, being in the ‘right’ school catchment can add tens of thousands of dollars value to a home.

Checklists

Trying to think of every contingency is difficult, especially when emotion is involved. Take a checklist with you to open inspections and get the real estate agent to clarify what you can’t verify by sight. Here’s a good all-round checklist Due diligence checklist - for home and residential property buyers, another from the Australian Property Industry 9 Property Due Diligence Checks Before You Buy and one more from NSW Government Family and Community Services Department to get you going: NSW Home Buyer’s Checklist  

Summary

It’s tempting to skip due diligence when buying a property. But given the ease of discovery now that research has gone digital, means there’s no excuse not to do your homework. Just the costs of selling and buying a home are reason enough, let alone the heartache of a mistake.. A few checks on Residz.com, engaging a solicitor to check paperwork, grilling the real estate agent, and using a checklist will help to ensure you don’t buy a liability rather than an asset.