Who is this series for?

🔹 First-time buyers who want a clear roadmap.
🔹Move-up buyers ready for or on the path to their dream home.
🔹Investors looking to get started with a smart strategy and are considering options.
🔹 Anyone who hates surprises and wants to be fully prepared for their Home Buying journey!

David Mercier introduces the ultimate home-buying guide, walking you through every step of the process, from pre-approval to move-in day!

1️⃣ Natural Hazard Disclosure (NHD) Report

One of the first property reports and disclosures you’ll receive is the NHD report outlines natural hazards that could affect the property.

• What It Includes: Information about flood zones, earthquake fault zones, fire hazard areas, and other risks.
• Why It’s Important: These hazards can influence your insurance requirements, safety measures, and long-term costs.

💡 Pro Tip: If the property is in a high-risk area, consult with your agent and insurance provider about your options.

2️⃣ Preliminary Title Report

The preliminary title report provides an early look at the legal status of the property. Did you already read my post: Title 101?

• What It Includes: Information about ownership history, liens, easements, and legal claims on the property.
• Why It’s Important: Resolving any title issues is essential to ensure you receive a clear and marketable title at closing.

💡 Pro Tip: Ask your agent or title company to explain any details you don’t understand. This report is vital for avoiding surprises later.

3️⃣ Seller Disclosures

The seller is required to disclose any known issues or defects with the property. During the property reports and disclosures phase, you’ll receive a packet of information about the property that the seller(s) has filled out. 

• What It Includes: Information about past repairs, structural issues, neighborhood nuisances, or any violations.
• Why It’s Important: Disclosures provide transparency and help you make informed decisions about additional inspections or negotiations.

💡 Pro Tip: If the disclosures raise concerns, follow up with specific inspections or ask for repairs.

4️⃣ HOA Documents (AKA CC&Rs)

If the home is part of a homeowners’ association, these documents provide critical details about the community.

• What It Includes: Rules, regulations, financial statements, meeting minutes, and information about fees and assessments.
• Why It’s Important: HOA rules (CC&Rs: Covenants, Conditions, and Restrictions) can impact your lifestyle, such as limits on renovations or pet policies.

💡Pro Tip: Review the HOA’s financial health and any upcoming assessments to avoid unexpected costs.

5️⃣  Inspection Report(s)

Inspection reports summarize the findings from any property inspections you’ve conducted. If you haven’t already, you should read my detailed post about Property Inspections. 

• What It Includes: A detailed analysis of the home’s systems and structure, including notes on any potential issues or recommended repairs.
• Why It’s Important: These reports help you identify repairs, negotiate with the seller, or decide whether to proceed with the purchase.

💡 Pro Tip: Pay attention to any recommendations for specialist evaluations and follow up as needed.

6️⃣ Appraisal Report

If you’re getting a loan to purchase your home, an appraisal will be required by your lender. The appraisal report is prepared by a licensed appraiser and evaluates the market value of the home.

• What It Includes: The home’s value based on its condition, location, and comparable sales in the area.
• Why It’s Important: Lenders require this report to ensure the property value supports the loan amount.

💡 Pro Tip: If the appraisal comes in lower than expected, discuss your options with your agent, including renegotiation.

7️⃣ Environmental Report

The environmental report evaluates risks associated with the property’s surroundings. Usually the Environmental Report is included along with the NHD report. 

• What It Includes: Data on radon levels, asbestos, lead-based paint, and other environmental concerns.
• Why It’s Important: These risks can impact your safety and property value.

💡 Pro Tip: For older homes or properties in areas with known hazards, consider ordering a detailed environmental assessment.

8️⃣ What to Do with All This Information

The volume of the property reports and disclosures can feel overwhelming, but here’s how to manage it:

• Read Everything: Even if it seems tedious, these documents contain essential details.
• Ask Questions: I am here to help! Ask me to explain anything that’s unclear or concerning.
• Decide on Next Steps: Use the information to decide whether to move forward, negotiate repairs, or even walk away.

You’re Take Away

Property reports and disclosures provide the full picture of what you’re buying, from potential risks to community rules. While it’s a lot of paperwork, each document plays a crucial role in ensuring you’re making a sound investment.

Ready to navigate the investigation phase with confidence? I’m David Mercier, and I’ll guide you through every step—reach out today to get started!