The Seller’s Disclosure is one of the most important documents you’ll receive when buying a home. However, many buyers only glance at it. For the savvy buyer, this document is a roadmap to the home’s history and potential future expenses.
Here are the key details I zero in on when reviewing a disclosure. The things often overlooked that truly indicate the home’s condition.
3 Critical Areas to Assess
Your focus should be on the major, expensive systems and the history of maintenance and ownership:
- System Ages and Life Expectancy: You need to look beyond the “Does it work?” question and ask “How soon will I need to replace it?”
- Roof Condition: Roofs typically last 15 to 30 years. Note the installation date to gauge when a major replacement will be necessary.
- Water Heater: These generally last around 10 years.
- HVAC/Heating Units: Expect a lifespan of about 20 years for these critical systems.
- Water, Termites, and Structural Issues: These are the most expensive issues to repair, and any disclosure here requires immediate, deep investigation.
- Look for any history of water damage, leaks, past mold remediation, or termite/pest problems.
- Check for disclosures regarding structural or foundation problems. Any “Yes” answer here should trigger an aggressive inspection clause.
- Recent Occupancy and Ownership: This isn’t a technical detail, but a behavioral clue.
- I check when the property was most recently occupied. If the home was owned by the original owner for a long period, it often suggests a level of personal care and maintenance that translates into a better-maintained home.
The Value of Detail (Even the Bad Kind)
I’ll be honest, not every seller completes the disclosure fully, and sometimes the lack of detail can be suspect.
I actually prefer a seller’s disclosure that is extremely detailed; even if it highlights minor issues. Why? Because it likely comes from a homeowner who is not only honest but also genuinely took care of their property and tracked its history.
Remember, honesty goes a long way in a real estate transaction, and the disclosure is your first opportunity to take the measure of the seller. Use it wisely.