So, you’ve begun the process of searching for a house, and you are probably wondering: What do I do now? One of the first things your agent will do when you identify a property of interest is request a Disclosure package from the listing agent to review with you.

When reviewing a property's disclosure package, you'll encounter numerous documents and potentially thousands of pages. Some documents pertain to general home buying, while others specifically address the property's condition.

Having a quick overview of the property helps you understand its condition and determine if it meets your criteria. Here are the key documents to quickly assess a home's condition:

Essential Seller-Completed Documents:

• TDS (Transfer Disclosure Statement)
• SPQ (Seller Property Questionnaire)

The seller must disclose all known property conditions, including defects and neighborhood issues. However, they are not required to disclose unknown or unknowable issues.

Agent Visual Inspection (AVID):

This document, completed by the seller’s agent, highlights visible issues based on their expertise. It should mention visible defects like cracks, uneven floors, dead trees, or failing retaining walls. The agent isn't expected to inspect the roof or crawlspaces, but any disclosed issues should be noted in the TDS and SPQ.

Seller Pre-inspections:

While not mandatory, seller inspections are common. If the inspection is absent or more information is desired, buyers can arrange for their own inspections. If a property is expecting multiple offers and is competitive, I often recommend that my Buyers reach out to the inspector who did the pre-sale inspection at minimum to review the findings and answer any questions they might have. 

Pest Report:

Most transactions include a 'Wood Destroying Pests & Organisms' Report, addressing termites, beetles, and fungi. It consists of the report and a Work Authorization (WPA) with pricing. Review both alongside the house drawing for clarity. The report categorizes work into:

Pest Section 1: Active damage needing treatment or wood removal.

Pest Section 2: Conditions that may lead to damage if untreated.

Further Inspection: Areas inaccessible due to water, entry issues, or requiring destructive testing.

If extensive pest work is needed, sellers might lower the price for the buyer to manage repairs, depending on how competitive the offer landscape is. Consider crawl space notes regarding ground conditions, water intrusion, ventilation, humidity, and rodent activity.

Home Inspection Report:

Most transactions include a Home Inspection Report, often with a summary highlighting key issues. Unlike pest reports, it doesn't provide cost estimates, but reasonable estimates can be made. Look for attic and crawl space photos, and check the electrical system, roof age, furnace, A/C, and water heater for life expectancy. If concerns arise, further inspections may be recommended.

Natural Hazard Report (Summary):

This report examines maps for hazards like high fire zones, flood zones, landslides, or earthquake faults. Ideally, the property is 'Not In' these zones. However, don't dismiss a property solely based on this report. Consult your agent to assess the risk and cost implications.

Remember, even a thorough review may not uncover everything. Buying a home always carries some risk, but understanding the disclosure package significantly reduces the chance of future issues or surprises.

Should you have any additional questions regarding Disclosures or strategies, even in a competitive situation, feel free to contact me!