AI Disclosure Packet Reviews

I wanted to talk about something that I think we’ll be seeing more of: AI disclosure packet reviews. 

My teammate had Entori (whom I can’t seem to find anymore ALREADY - lol) run through the disclosures for one of the properties Brava had listed and it was hilariously bad. It couldn’t read a lot of the scanned documents from the city, and it noted that there were fires and floods that had affected the property, which wasn’t true. It also thought this single family home was a part of an HOA, which was also not true. 

Additionally, it felt like it just copy + pasted the disclosures, which doesn’t help you get the needed context to know why something would be a negative/positive. A good agent will send you actual highlights and then ALSO go through disclosures with you to discuss anything you need to know.

There is a lot of local knowledge that AI won’t know and is something only an experienced agent will be able to give you context on. Our job when reading a disclosure packet goes far beyond just reading docs: we are checking out multiple gov’t or city websites, knowing exactly what additional questions to ask the listing agents, and so much more. There are usually 50+ docs long and the entire package is easily 400+ pages (not including if historical docs are included).

I was recently looking at condos with a buyer and he had identified a few buildings. The units and buildings themselves were very similar - small, Edwardian-era buildings with similar HOA dues in a similar area of town. Here are a few of the real-life examples of things I had to figure out: 

• Building 1: They had an internal conflict with one owner suing another unit. This owner also didn’t pay HOA dues anymore because the building hired a professional management company to help them run the HOA because nobody wanted to do anything and he felt this unnecessary. The management company actually fired the HOA because nobody showed up to meetings. 2. They had about $1200 in their reserves account. 3. I got a lot of this information verbally from the listing agent and NOT in the disclosure packet because the “president” of the HOA was “too nervous” to put anything in writing.
  My context: 1. Lenders don’t love lawsuits in condo buildings. It can be a deal breaker, especially if you’re using a traditional bank like Wells Fargo, etc. and you need to know to ask about this UPFRONT. Additionally, this is a potential nightmare for you! 2. $1200 in reserves can also a red flag that means $$$ you will be responsible for in a building 100+ years old that is not being maintained, especially in the current insurance environment. Imagine trying to negotiate a roof replacement with the neighbor suing folks. 3. Agents are more open with other agents - who is going to call and get any other details and know what additional questions to ask?

• Building 2. This HOA was better, but still not ideal. 1. The unit was above the garage. 2. There had been a flood from a fire hydrant the previous year and there were some remaining items still not completed, but no additional notes on this. 3. The HOA had discussed additional needed repairs on the deck, but it had been months since any of them had even talked about this work, while the deck continued to rot away. 4. The main bedroom here did not have a closet and nowhere in the disclosures noted this, even though it was listed as a two bedroom. The second bedroom was DARK.
  My context: 1. I had the listing agent test out the garage while I sat inside the listing in different rooms and made notes for my client. It was definitely loud in some rooms. 2. AND 3. Who is paying for this? And where do the rest of the repairs stand? Would the seller be open to paying for his share of these items? 4. This was probably originally the dining room when it was built and converted - does AI have architectural context of our city to look for this and know that it’s even missing? I also measured the area around a fireplace here to check hanger depth, etc. to see if it was possible to even add one.

  Do we think AI could help point these things out, especially when listings often sell within 2 weeks and you have a full-time job of your own? My clients often complain that this process feels like a full-time job AND IT KIND OF IS for a while, even with massive amounts of help from the professional team we build around you to support you! Between hunting for the perfect property (especially when part of the limited inventory is OFF-MARKET now), reading and getting through disclosures, getting through the financing part, and crafting your best offer, it’s a LOT. If you need help, I’m the lady for the job. Reach out :)