A smart buyer knows that a seller disclosure report is very important in making sure that you know what you MUST know about the property that you are about to buy. Without this, you would never learn about the rat infestation, the foundation breaking apart, or whether the property was once a meth lab. Yikes!
So before signing that deal, here are the information that you need to look out for when reading the seller disclosure report according to Trulia:
How old's the roof?
The seller disclosure report could tell you about the age of the roof. However, by knowing that it's 8 years old wouldn't really tell you much unless you are knowledgeable of roof life spans and roof materials.
Roofs could last 10 to 50 years, depending on what they are made of. Tar-and-gravel roof has a shorter life span of 10 to 20 years. The more popular composition shingle roofs could last to about 20 years. And the material that lasts the longest is clay which is what you see on Spanish-Mediterranean homes and they last up to 50 years.
Crawl space vs. cement slab
With the help of a seller disclosure report, find out whether the house either has crawl space or a cement slab. "There are mixed opinions as to which is better and why," according to Carlyn Neuman, a Florida-based attorney and real estate broker.
Crawl space can easily be inspected, repaired and upgraded, but good ventilation is a must to deter the growth of molds. Cement slabs on the other hand are guaranteed molds and critter proof, but they could be damaged by tree roots or sifting oil and this could be costly to fix. It's also more challenging to repair considering that they have to be removed to repair broken or leaking pipes.
Plumbing pipes
Make sure to identify what the plumbing pipes are made of in the seller disclosure report. Brass, copper, and galvanized steel can last 80 to 100 years while polybutylene or lead pipes could mean trouble.
The HVAC and water heater
In the seller disclosure report, you will find out how old the HVAC system and water heater are. "Water heaters don't really need to be replaced until they leak or fail," says Rachael Hand, a broker in Lafayette, CA. Gas heaters last 10 years and electric ones last 15.
"HVAC systems can last 15 to 20 years if properly cared for," says Hand, and this requires regular cleaning filters, lines, and ducts. "Look for a service record on the unit, or ask for records from the homeowner," she says.
But even if the HVAC is working, "a 15-year-old system is running 40% less efficient than a new system, costing you much more on your bill," says Carlyn Neuman. -
Cracks in the wall
If this appears on the seller disclosure report, hope for the best but prepare for the worst. "[The cracks] could be structural," says Macias. Consider calling in a structural engineer to investigate.
