I recently learned about the BuildFax Reports from a home inspector whom my buyer clients often use. Let me be clear, I am by no means making a plug for this report (you must purchase the report every time you run one on a property) however, at $29.99, I think it provides the buyer with another layer of due diligence on top of the actual physical home inspection.

Essentially, BuildFax is a national data source for property condition. Their products provide insights to the “entire real estate ecosystem,” from Homeowners insurance carriers to mortgage lenders to real estate professionals. Pulling from more than 10 billion data points across the country, reports are generated online which provide the consumer with a snapshot of previous property improvements, potential risks and changes over time.

Have you ever been interested in purchasing a property and it’s clear that improvements or renovations have been made but you want to know more about them? Or maybe you’ve read the Seller’s Property Disclosure and there’s some ambiguity in their answers (many Sellers often fill these out incorrectly or in an unintentionally misleading way). BuildFax reports might be able to help, though, one caveat: I pulled a report for a property on which my clients are currently under contract and it did not pick up that the roof was replaced in 2013. It’s my guess that these reports are not all together accurate if improvements were made outside of insurance claims and permitted activity. So, what I’m learning is that the report needs to come with a grain of salt and certainly cannot be construed as the full picture, just a springboard for additional questions and conversations, if concerns arise.

Here are some of the features of the BuildFax Report:

Renovation History
They take every update on record for the property and use that to determine the quality of work that was done. The absence of records can be evidence of a “weekend warrior” project or renovations made by unlicensed professionals. **If there’s clearly been renovations and there are no records to be found this may be worth asking for more information in the due diligence section of the purchase contract.

20 Point Risk Scan
There are certain types of problems that are pervasive and/or most costly and noteworthy. This includes things like pests or termites, radon gas, wind/fire/water damage, among others. The 20 Point Risk Scan flags these if there’s a history of them being present. It also shows when permits were pulled, what type of permit was pulled and the permit number so you can reference it when you call the county. **If the permits are pre-2012, you have to request hard copies since they are not available online. https://www.denvergov.org/content/denvergov/en/denver-development-services/help-me-find-/building-permits.html

Neighborhood Review
The BuildFax Report shows the construction activity trends with economic changes in the neighborhood to provide the consumer with a sense of what the community is doing in remodeling- offering a glimpse of gentrification trends and residential redevelopments (flipped houses). **Since this is widespread in particular Denver Metro neighborhoods, this could be helpful.

Ask your real estate broker about this tool- it may be worth adding to your toolbox when purchasing a home!