Article
PropertyLens Home Buyer’s Guide: Know Before You Close
April 23, 2025
Buying a home is both an emotional journey and one of the most significant financial decisions of your life. In a market that often favors speed, the due diligence phase is the last defense against unexpected issues, especially hidden problems that can lead to costly repairs or insurance hikes after closing. This guide aims to prepare you for the final steps before closing, equipping you with the knowledge to make informed choices.
Why Due Diligence Matters
The home-buying process can often feel rushed, especially in competitive markets. But skipping or skimming due diligence steps could lead to expensive surprises. According to a recent survey by the National Association of Realtors (NAR), over 20% of buyers regretted not doing a more thorough inspection, with many reporting issues like foundation cracks, plumbing leaks, or previous flood damage only after moving in.
How PropertyLens Helps
PropertyLens provides comprehensive property history reports that highlight potential red flags—past damages, structural repairs, insurance risks, and maintenance needs. With BuyerLens®, InspectorLens®, and InsuranceLens® insights, buyers gain an informed view that empowers them to ask the right questions, negotiate with clarity, and make confident decisions.
Key Takeaway: Arm yourself with data to confidently navigate your purchase and avoid post-purchase regrets.
1. Decoding Seller Disclosures
Understanding Seller Disclosures
Seller disclosure forms vary from state to state, both in format and content. For example, California requires a Transfer Disclosure Statement, which mandates sellers to reveal past water leaks, roof defects, and any nearby environmental hazards. In contrast, Texas requires a Seller's Disclosure Notice but limits disclosure to the seller’s direct knowledge, which could leave out issues the seller is unaware of.
Common Omissions
Many seller disclosures leave out or minimize details that don’t seem urgent but could indicate deeper problems. For example:
Key Questions to Ask
BuyerLens® includes a list of targeted questions:
Key Takeaway: Seller disclosures are an essential starting point, but they’re rarely comprehensive. Always go beyond the form and ask probing questions.
2. Navigating Home Inspections
Timing Your Inspection
In most U.S. states, buyers have a short window, typically 7-10 days, to arrange inspections. This period can vary, though, with hotter markets often seeing even shorter timelines. For instance, in areas like Seattle or Denver, where the housing market remains competitive, many buyers feel pressured to waive inspections altogether—a risky decision that often leads to post-purchase regrets.
What to Prioritize
A standard inspection report may include dozens of minor issues, but focus on these high-cost, high-risk areas:
Using InspectorLens®
InspectorLens® offers a checklist tailored to help you dig deeper. For example, in humid regions, check for mold in bathrooms and basements, while in drought-prone areas, ensure outdoor structures like patios and retaining walls are secure, as shifting soil can create instability.
Negotiation Tips
Use inspection findings to negotiate with the seller. In states with a strong buyer market, like New York, you may be able to request extensive repairs or closing credits. In more competitive markets, like San Francisco, sellers may only agree to minor fixes, so prioritize essentials like safety hazards or issues that impact habitability.
Buyer Beware Tip: In states where sellers are not obligated to fix inspection issues, weigh the costs and be prepared to cover some repairs yourself if the market is competitive.
Key Takeaway: Prioritize safety and structural issues over minor flaws, and use inspection findings as leverage in your negotiations.
3. Assessing Insurance Risks
Understanding Insurability
Homeowners’ insurance costs vary greatly by location. In flood-prone areas, like New Orleans, insurance premiums are often high, and properties in FEMA flood zones may require costly flood insurance. In wildfire-prone states like California, some insurers have pulled back from offering coverage, forcing homeowners to seek state-backed, high-cost options.
Spotting “Silent Hazards”
Properties in areas with unique hazards—like radon in the Midwest, sinkholes in Florida, or oil wells in Texas—pose specific risks. Radon, for example, is invisible and odorless but can cause health issues over time. The Environmental Protection Agency (EPA) advises testing for radon in specific states, and it’s especially important in basements or lower levels where radon tends to accumulate.
Estimating Premiums
InsuranceLens® provides an estimated range for premiums and highlights factors that can raise costs. For instance, older homes with outdated electrical systems in places like New England can face higher premiums. Flood-prone properties, such as those in coastal Louisiana, may have flood insurance premiums costing thousands per year.
Buyer Beware Tip: Don’t rely on the seller’s current premium as an indicator for your own. Premiums often increase for new policyholders, and recent claims can make coverage harder or more expensive to obtain.
Key Takeaway: In may places, insurance costs are rising astronomically. Understand the insurance landscape for your new home by getting a quote before you make an offer.
4. Evaluating Property Condition and History
Reviewing Property Condition
Your PropertyLens report provides a deep dive into the property’s condition over time. This includes historical data on issues like foundation work, major renovations, or pest infestations. In termite-prone areas like the Southeast, check for recent termite treatments and structural reports.
Modifications and Repairs
While modifications can be valuable, they’re only as good as their compliance and quality. Properties in California, for instance, might have unpermitted ADUs (Accessory Dwelling Units), especially in high-demand cities like Los Angeles. These can be costly to bring up to code if unapproved or poorly constructed.
Maintenance Records
Well-maintained homes are easier to budget for. Regular HVAC servicing, plumbing checks, and roof inspections reveal a proactive approach to upkeep. If these records are missing, expect to set aside funds for unexpected repairs.
Buyer Beware Tip: Newer, cosmetic updates like fresh paint and new flooring are often used to conceal larger issues. Watch out for “flip” properties, as these are sometimes rushed for quick sales without extensive quality checks.
Key Takeaway: Property history and maintenance records reveal long-term issues that may not be obvious at a first glance. They’re a window into how much care the home has received over the years.
5. Calculating the Cost of Ownership
Beyond the Mortgage
Owning a home means ongoing costs. For example, property taxes can vary significantly by state and county. In states like New Jersey, where property taxes are among the highest in the nation, these expenses could add hundreds to your monthly payments.
Utility Costs and Regional Variations
Heating and cooling expenses can vary based on the home’s location, size, and energy efficiency. Homes in areas with extreme climates—like Minnesota winters or Texas summers—tend to have higher utility costs. Older homes may also be less energy efficient, especially those without upgraded insulation or windows.
Preparing for Future Costs
Budget for repairs on major systems and infrastructure. In Florida, for example, air conditioning systems face heavy use year-round and may need frequent servicing. In the Northeast, homes with basements may require sump pumps to handle seasonal water seepage.
Buyer Beware Tip: Remember that HOAs and special tax assessments can add hundreds per month in some areas, especially in newer developments or planned communities.
Key Takeaway: Factor in utilities, maintenance, and HOA fees for a realistic picture of what your monthly budget will look like.
6. Navigating Common “Gotchas” for New Buyers
Inspection Limitations
Inspectors often miss issues that only show up seasonally, like winter water leaks in colder states or damp basements after heavy rainfall. If you're buying in a different season that when those sorts of type of event occur, be prepared for surprises.
Hidden Fees and Responsibilities
Closing costs are often overlooked but can add up to 2-5% of the home’s price. First-time buyers should also be aware of ongoing fees, like trash removal, pest control, or lawn care, which are rarely mentioned upfront but add to the cost of ownership.
Who Pays for What
State customs vary. In Texas, it’s customary for the seller to cover title insurance, whereas in some other states, it’s split. Knowing who’s responsible for what can help you budget and avoid surprises.
Buyer Beware Tip: Be cautious of waiving inspection or financing contingencies to secure an offer; it might make your offer more attractive but increases your financial exposure.
Key Takeaway: A strong understanding of local customs, seasonal issues, and hidden costs ensures you’re financially prepared for homeownership.
7. Negotiating with Confidence
Using Your PropertyLens Report
Armed with data, you have the leverage to negotiate for repairs or price reductions. If you discover past flooding in the basement or outdated wiring, use it to request concessions. In some areas, sellers are more willing to negotiate if data-backed issues come up.
Requesting Remediations
Be strategic and focus on essentials, especially in competitive markets. A buyer in New York might need to prioritize urgent safety fixes, while a buyer in Florida could negotiate for window or roof repairs to enhance hurricane resistance.
Knowing When to Walk Away
Some risks aren’t worth taking. If a property has a history of mold, unpermitted construction, or environmental hazards, your best option may be to move on. High-risk properties are more likely to become a financial burden over time.
Buyer Beware Tip: Always verify that any promised repairs are done by licensed professionals. Request receipts or proof of work, particularly for structural repairs.
Key Takeaway: Negotiations are about balancing what’s realistic and essential to make the property safe and livable without overburdening yourself.
Conclusion: Making Your Move with PropertyLens
Equipped with your PropertyLens report and this guide, you’re prepared to navigate due diligence and ensure a confident, secure purchase. From seller disclosures to property history and insurance risks, you now have a clear understanding of what it takes to make an informed decision.
Why Due Diligence Matters
The home-buying process can often feel rushed, especially in competitive markets. But skipping or skimming due diligence steps could lead to expensive surprises. According to a recent survey by the National Association of Realtors (NAR), over 20% of buyers regretted not doing a more thorough inspection, with many reporting issues like foundation cracks, plumbing leaks, or previous flood damage only after moving in.
How PropertyLens Helps
PropertyLens provides comprehensive property history reports that highlight potential red flags—past damages, structural repairs, insurance risks, and maintenance needs. With BuyerLens®, InspectorLens®, and InsuranceLens® insights, buyers gain an informed view that empowers them to ask the right questions, negotiate with clarity, and make confident decisions.
Key Takeaway: Arm yourself with data to confidently navigate your purchase and avoid post-purchase regrets.
1. Decoding Seller Disclosures
Understanding Seller Disclosures
Seller disclosure forms vary from state to state, both in format and content. For example, California requires a Transfer Disclosure Statement, which mandates sellers to reveal past water leaks, roof defects, and any nearby environmental hazards. In contrast, Texas requires a Seller's Disclosure Notice but limits disclosure to the seller’s direct knowledge, which could leave out issues the seller is unaware of.
Common Omissions
Many seller disclosures leave out or minimize details that don’t seem urgent but could indicate deeper problems. For example:
- Water Damage: Some sellers might note "minor water damage" without mentioning the extent, which could hide serious mold issues.
- Roof Repairs: In states like Florida, where hurricanes are frequent, roof repairs are common, but sellers may only disclose recent patchwork, leaving buyers unaware of structural vulnerabilities.
- Seismic Zones: In earthquake-prone states like California, sellers must disclose if retrofitting has been done. But many homes lack these updates, increasing buyer risks.
Key Questions to Ask
BuyerLens® includes a list of targeted questions:
- “Have you had the foundation assessed in the last five years?” (This is especially critical in clay-rich areas like Texas, where soil movement can affect the foundation)
- “Are there warranties or service records for recent repairs?”
- “Has there ever been a claim filed on this property due to storm damage?”
Key Takeaway: Seller disclosures are an essential starting point, but they’re rarely comprehensive. Always go beyond the form and ask probing questions.
“Don’t take “no known issues” at face value—sellers often disclose based on personal experience, which might overlook hidden concerns.”
2. Navigating Home Inspections
Timing Your Inspection
In most U.S. states, buyers have a short window, typically 7-10 days, to arrange inspections. This period can vary, though, with hotter markets often seeing even shorter timelines. For instance, in areas like Seattle or Denver, where the housing market remains competitive, many buyers feel pressured to waive inspections altogether—a risky decision that often leads to post-purchase regrets.
What to Prioritize
A standard inspection report may include dozens of minor issues, but focus on these high-cost, high-risk areas:
- Foundation and Structural Integrity: Commonly overlooked in markets like the Midwest, where seasonal soil shifts can cause cracks.
- Roof Condition: In high-wind states like Oklahoma or Kansas, roof damage is more likely, so it’s crucial to check for missing shingles, leaks, and age
- HVAC Systems: States with extreme temperatures, like Arizona, rely heavily on functioning AC. Inspect the HVAC for signs of wear, poor airflow, and energy inefficiency.
Using InspectorLens®
InspectorLens® offers a checklist tailored to help you dig deeper. For example, in humid regions, check for mold in bathrooms and basements, while in drought-prone areas, ensure outdoor structures like patios and retaining walls are secure, as shifting soil can create instability.
Negotiation Tips
Use inspection findings to negotiate with the seller. In states with a strong buyer market, like New York, you may be able to request extensive repairs or closing credits. In more competitive markets, like San Francisco, sellers may only agree to minor fixes, so prioritize essentials like safety hazards or issues that impact habitability.
Buyer Beware Tip: In states where sellers are not obligated to fix inspection issues, weigh the costs and be prepared to cover some repairs yourself if the market is competitive.
Key Takeaway: Prioritize safety and structural issues over minor flaws, and use inspection findings as leverage in your negotiations.
3. Assessing Insurance Risks
Understanding Insurability
Homeowners’ insurance costs vary greatly by location. In flood-prone areas, like New Orleans, insurance premiums are often high, and properties in FEMA flood zones may require costly flood insurance. In wildfire-prone states like California, some insurers have pulled back from offering coverage, forcing homeowners to seek state-backed, high-cost options.
Spotting “Silent Hazards”
Properties in areas with unique hazards—like radon in the Midwest, sinkholes in Florida, or oil wells in Texas—pose specific risks. Radon, for example, is invisible and odorless but can cause health issues over time. The Environmental Protection Agency (EPA) advises testing for radon in specific states, and it’s especially important in basements or lower levels where radon tends to accumulate.
Estimating Premiums
InsuranceLens® provides an estimated range for premiums and highlights factors that can raise costs. For instance, older homes with outdated electrical systems in places like New England can face higher premiums. Flood-prone properties, such as those in coastal Louisiana, may have flood insurance premiums costing thousands per year.
Buyer Beware Tip: Don’t rely on the seller’s current premium as an indicator for your own. Premiums often increase for new policyholders, and recent claims can make coverage harder or more expensive to obtain.
Key Takeaway: In may places, insurance costs are rising astronomically. Understand the insurance landscape for your new home by getting a quote before you make an offer.
4. Evaluating Property Condition and History
Reviewing Property Condition
Your PropertyLens report provides a deep dive into the property’s condition over time. This includes historical data on issues like foundation work, major renovations, or pest infestations. In termite-prone areas like the Southeast, check for recent termite treatments and structural reports.
Modifications and Repairs
While modifications can be valuable, they’re only as good as their compliance and quality. Properties in California, for instance, might have unpermitted ADUs (Accessory Dwelling Units), especially in high-demand cities like Los Angeles. These can be costly to bring up to code if unapproved or poorly constructed.
Maintenance Records
Well-maintained homes are easier to budget for. Regular HVAC servicing, plumbing checks, and roof inspections reveal a proactive approach to upkeep. If these records are missing, expect to set aside funds for unexpected repairs.
Buyer Beware Tip: Newer, cosmetic updates like fresh paint and new flooring are often used to conceal larger issues. Watch out for “flip” properties, as these are sometimes rushed for quick sales without extensive quality checks.
Key Takeaway: Property history and maintenance records reveal long-term issues that may not be obvious at a first glance. They’re a window into how much care the home has received over the years.
5. Calculating the Cost of Ownership
Beyond the Mortgage
Owning a home means ongoing costs. For example, property taxes can vary significantly by state and county. In states like New Jersey, where property taxes are among the highest in the nation, these expenses could add hundreds to your monthly payments.
Utility Costs and Regional Variations
Heating and cooling expenses can vary based on the home’s location, size, and energy efficiency. Homes in areas with extreme climates—like Minnesota winters or Texas summers—tend to have higher utility costs. Older homes may also be less energy efficient, especially those without upgraded insulation or windows.
Preparing for Future Costs
Budget for repairs on major systems and infrastructure. In Florida, for example, air conditioning systems face heavy use year-round and may need frequent servicing. In the Northeast, homes with basements may require sump pumps to handle seasonal water seepage.
Buyer Beware Tip: Remember that HOAs and special tax assessments can add hundreds per month in some areas, especially in newer developments or planned communities.
Key Takeaway: Factor in utilities, maintenance, and HOA fees for a realistic picture of what your monthly budget will look like.
“Be cautious of waiving inspection or financing contingencies to secure an offer; it might make your offer more attractive but increases your financial exposure.”
6. Navigating Common “Gotchas” for New Buyers
Inspection Limitations
Inspectors often miss issues that only show up seasonally, like winter water leaks in colder states or damp basements after heavy rainfall. If you're buying in a different season that when those sorts of type of event occur, be prepared for surprises.
Hidden Fees and Responsibilities
Closing costs are often overlooked but can add up to 2-5% of the home’s price. First-time buyers should also be aware of ongoing fees, like trash removal, pest control, or lawn care, which are rarely mentioned upfront but add to the cost of ownership.
Who Pays for What
State customs vary. In Texas, it’s customary for the seller to cover title insurance, whereas in some other states, it’s split. Knowing who’s responsible for what can help you budget and avoid surprises.
Buyer Beware Tip: Be cautious of waiving inspection or financing contingencies to secure an offer; it might make your offer more attractive but increases your financial exposure.
Key Takeaway: A strong understanding of local customs, seasonal issues, and hidden costs ensures you’re financially prepared for homeownership.
7. Negotiating with Confidence
Using Your PropertyLens Report
Armed with data, you have the leverage to negotiate for repairs or price reductions. If you discover past flooding in the basement or outdated wiring, use it to request concessions. In some areas, sellers are more willing to negotiate if data-backed issues come up.
Requesting Remediations
Be strategic and focus on essentials, especially in competitive markets. A buyer in New York might need to prioritize urgent safety fixes, while a buyer in Florida could negotiate for window or roof repairs to enhance hurricane resistance.
Knowing When to Walk Away
Some risks aren’t worth taking. If a property has a history of mold, unpermitted construction, or environmental hazards, your best option may be to move on. High-risk properties are more likely to become a financial burden over time.
Buyer Beware Tip: Always verify that any promised repairs are done by licensed professionals. Request receipts or proof of work, particularly for structural repairs.
Key Takeaway: Negotiations are about balancing what’s realistic and essential to make the property safe and livable without overburdening yourself.
Conclusion: Making Your Move with PropertyLens
Equipped with your PropertyLens report and this guide, you’re prepared to navigate due diligence and ensure a confident, secure purchase. From seller disclosures to property history and insurance risks, you now have a clear understanding of what it takes to make an informed decision.
