Property Disclosure Through an Agent’s Eyes

by | Jan 19, 2022 | Buyers | 0 comments

Many of my buyers ask me how to make sense of the many documents that are included most property disclosures. While I advise my clients to read every document in the packet, there are some items that are much more important than other in evaluating the condition of a particular property. Check out my tips below on which reports I review to get an overview in just a few minutes.

Pest report

the pest inspection report is broken down into section 1 and section 2. Section 1 contains issues currently affecting the structure. It can be dry rot behind stucco, window damage, or porch, deck, & railing issues. Section 2 are items that have been identified as potential problems. If you navigate to the last page of the report, you will see a bid associated with both section 1 and section 2.

Home inspection report

A home inspection includes a review of major home systems from the plumbing, electrical, foundation, & roof. Most reports have a “primary recommendations” section that identifies anything that needs repair or replacement. Home inspection reports will not have an associated bid so ask your agent to provide rough figures or contact a contractor.

The preliminary title report

The title report is tricky to review and I always advise my buyers to call the title company to review it thoroughly with the title officer. Things to check: Ensure the person selling is the same person named in the title report. Confirm there are no liens on the property, and if there are, that the amount of your offer will be sufficient to pay off the balance. Read the legal description of the property. HEADS UP: if it reads “A portion of lot #” This indicates the lot was subdivided at some point. You also want to read all of the exceptions and click on every hyperlink.

The housing stock in the inner East Bay ranges from 80-120 years old. There are going to be condition issues in most homes. It’s a matter of understanding which projects outlined property disclosures you have the budget and bandwidth to take on. Once you have completed your quick review and consulted with your agent, it’s time to read every single page of those disclosures. As always, be sure to consult with your agent on any questions you have. They should be able to provide information and also resources so you have the information needed in order to confidently make an offer. Contact me if you have questions about a specific disclosure package and I can help you evaluate the purchase risk.

Related Articles

10 Moving In Tips for a Smooth Home Move

10 Moving In Tips for a Smooth Home Move

The process of moving into a new home can be both exhilarating and exhausting. The journey continues after you close on your property as you still have quite a bit to do before you can begin the process of moving and settling into your new place. Fortunately, you...

5 Ways to Write a Winning Offer in Today’s Real Estate Market

5 Ways to Write a Winning Offer in Today’s Real Estate Market

Our real estate market is in the midst of a serious housing crunch. Last year, a lack of inventory and soaring prices left many would-be homebuyers feeling pinched. But now, with interest rates climbing, many of them are also feeling desperate to lock in a...

Timing The Market

Timing The Market

Are you dreaming of owning a home? Buying a home in an ascending market where demand far outpaces supply is anxiety provoking! My best advice is to take proactive steps to meet your goal and let go of what you can’t control. When I was buying my first house at 25, my...