Common, minor, cosmetic, or easy to clarify. Examples include minor paint wear, small maintenance items, or general inspector recommendations.
Understanding Reports
Understand risk flags and what to ask next.
KindVest flags items that may need closer review. A flag does not automatically mean a property is bad. It means the issue deserves clarification, documentation, negotiation, or professional review.
What is a property risk flag?
A risk flag is an item that may need closer attention. It may represent a repair issue, future cost concern, HOA responsibility question, lender or insurance concern, missing document, closing delay risk, negotiation opportunity, or professional review item.
Risk levels
Needs clarification, a repair estimate, or written confirmation. Examples include plumbing concerns, older systems, HOA maintenance questions, or missing documentation.
May involve significant cost, safety, lender approval, insurance, HOA exposure, legal concern, or closing impact. Examples include structural concerns, active leaks, low HOA reserves, litigation, special assessments, unpaid invoices, or appraisal issues.
Why was something flagged?
Example: This item was flagged because the document mentions balcony cracking, rust, wood deterioration, or deferred maintenance. This could indicate a repair issue, HOA responsibility question, safety concern, or future cost exposure. Ask your agent, inspector, HOA, or management company who is responsible and whether there are open invoices, pending assessments, or written repair plans.
Inspection report flags
Inspection reports may include issues related to roofs, plumbing, electrical, HVAC, foundation, drainage, windows, doors, decks, balconies, fire safety, moisture, wood damage, or safety hazards.
Questions to ask
- Is this item cosmetic, functional, or safety-related?
- Should a specialist inspect this further?
- What is the estimated repair cost?
- Is this the buyer’s responsibility, seller’s responsibility, or HOA responsibility?
- Should this be repaired before closing?
- Can this be used as a negotiation point?
HOA, condo, and townhome flags
HOA documents are important because repair responsibility may belong to the association instead of the individual owner.
- Low reserves
- Deferred maintenance
- Pending special assessments
- Litigation
- Insurance coverage changes
- Unclear maintenance responsibility
- Balcony, deck, roof, exterior, or common area issues
- Unpaid invoices
- Missing meeting minutes or incomplete reserve study
Questions to ask
- Are there current or planned special assessments?
- Are reserves considered healthy?
- Are there major repairs planned?
- Is the HOA involved in litigation?
- Who is responsible for exterior repairs?
- Has the HOA provided written confirmation?
Appraisal flags
Appraisal issues can affect financing, negotiation, and closing.
- Appraised value below purchase price
- Weak comparable sales
- Condition concerns
- Required lender repairs
- Square footage discrepancies
- Unusual adjustments
Questions to ask
- Did the property appraise at or above the purchase price?
- Were the comparable sales appropriate?
- Did the appraiser identify required repairs?
- Could this affect lender approval?
- Is a reconsideration of value appropriate?
Escrow and closing flags
- Missing documents
- Unpaid invoices
- Delayed HOA questionnaire
- Title issues
- Seller-side delays
- Unresolved repair agreements
- Insurance approval delays
- Closing disclosure delays
- Rate lock expiration
- Final cash-to-close changes
Questions to ask
- What documents are still missing?
- Who owns the next action?
- Could this delay closing?
- Are there unpaid invoices?
- Has the responsible party confirmed the issue in writing?
- Does this affect loan approval, insurance, or title?
Lender red and green flags
Rate lock expiring soon, appraisal not completed, loan conditions unresolved, HOA questionnaire missing, insurance not approved, delayed closing disclosure, unclear lender fees, final approval not issued, or cash-to-close not confirmed.
Appraisal completed, loan approved, conditions cleared, insurance accepted, closing disclosure issued, rate locked through closing, final cash-to-close confirmed, or signing appointment scheduled.
What should I ask next?
- Who is responsible for this repair?
- Is this issue cosmetic, functional, safety-related, or financial?
- Could this affect closing?
- Could this affect insurance or lender approval?
- Are there open invoices or unpaid balances?
- Are there pending assessments?
- Has the HOA confirmed responsibility in writing?
- Should I request a credit, repair, price reduction, or further inspection?
- Is this a normal issue for this property type and age?
- Is this a dealbreaker or just something to monitor?