The Property Information Book is key for my Sellers. When I get a new listing for Palos Verdes real estate, I have my Sellers fill out all the disclosures and order all reports on the property prior to the property actually hitting the Multiple Listing Service. The Property Information Book stays at the property for potential buyers to view and packets of these reports/disclosures are available for buyers to read before making an offer. It is a huge advantage to both Buyers and Sellers.
The Seller now knows what the strengths and weaknesses of his property are. We order a Termite Report, Property Inspection, Preliminary Title Report, Property ID Natural Hazards Disclosure Report, CLUE Report (prior insurance claims), mandated City Reports & permits and Home Owner Association documents (if appropriate). The Seller also fills out Seller Property Questionnaire, Transfer Disclosure Statement, Statewide Buyer and Seller Advisory, Mold Disclosure, Water Heater/Smoke Detector Statement of Compliance, Lead Paint Disclosure and Residential Earthquake Hazards Report. The Seller will have to provide all those reports/disclosures (except the Property Inspection) during escrow anyway, so why not up front? This is a lot of work and very time consuming as it can take a couple of weeks to get all the information but the payoff is huge — the Seller does not have to renegotiate the sales price in escrow because of any adverse revelations from Buyer reports. And if the Seller is lucky enough to get multiple offers, he can be more confident in choosing an informed Buyer who will complete the transaction.
The Buyer now knows what to expect from the property before he even makes an offer to purchase. He, too, knows the property’s strengths and weaknesses. The Buyer should also get his own property inspection and share (with his own inspector) the inspection report that the Seller has already provided. The Buyer is then in a better position to make an informed decision to remove contingencies and close escrow on his new home! It makes the escrow process smoother enables both the Buyer and Seller to close the deal in an atmosphere of good relations.
