It's become apparent to me that many agents when filling out the disclosure on a property that they are involved with do not understand the meaning of "What is a Red Flag". Many agents wait until the physical inspection has been completed and then take care of the disclosure. It is in the best of the agent to do their due diligences.
What is a Red Flag?
A warning signal or indication of a problem.
Here are a few things that might be symptomatic of being a red flag?
- Strange odors? If you walk through the home and you see a bunch of plug-ins-you might want to investigate.
- Make sure that you do a tour of the exterior of the home, check the foundation; look for cracks or other tell tale signs that there could be issues.
- Check exterior drainage.
- Does the neighborhood seem like it is experiencing a mass exodus-check it out.
- Even if the seller tells you that he has permits for a re-model - it is in your best interest to check it out.
- Bugs, Termites. Or those things that can go bump in the night. (Skunks or gophers)
- Mold - Mildew, here in California it is a hot button. Be careful when you are making this disclosure.
- Schools, Traffic-re-routing and re-zoning of near by properties- all can - be a red flag.
- Check out the HOA's - how are the reserves etc, what about lawsuits.
- Do not help the seller complete the their portion of the real estate disclosure.
As an agent you do not have to become a home inspector --- but it is necessary for you to know what is going on with the property that you are involved with. A reminder -- a red flag is a warning signal or can be an indication of a problem.
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