What is an NHD Report?

Every potential buyer knows the drill: you find an agent, visit houses, and make an offer based on a home’s location, amenities, and the condition. But many buyers aren’t aware that sellers are obligated to provide them as the buyer an NHD report.

NHD Report

The Natural Hazard Disclosure is a comprehensive statement that guides buyers on the risks associated with a certain property. It highlights whether the property is in a natural hazard zone and if it can get damaged due to natural disasters.

In many states of the U.S. including California, NHD law requires property sellers and their agents to produce the NHD report before they sell off a residential or commercial property. In case the report can’t be arranged before the sale, sellers should disclose to the buyer or their agent that the property is located in any of the natural hazard zones.

Here’s a brief list of common natural hazards that may damage a property and risk your life:

  • Earthquakes
  • Landslides
  • Avalanches
  • Volcanic eruptions
  • Sinkholes
  • Storms
  • Floods
  • Cold or heat waves
  • Wildfires

NHD report covers natural hazard information provided by local jurisdictions and is extremely useful for buyers when it comes to making an informed decision.

Cost of an NHD Report

Some real estate agents may think it’s not worth it to ask a seller to provide an NHD report. But it doesn’t mean that they want to encourage sellers to hide critical information about the property and risk your life and possessions.

On an average, it costs $100-$125 to get a detailed report in different states of the U.S. Instead of forcing the seller to provide you with this report by consulting a third-party, you can rather ask to add this information to the buying contract. This will help you carry out the deal in a positive way and ensure that the seller isn’t burdened with an additional fee.

Benefits of an NHD Report

Properties in natural hazard zones are likely to get damaged in case of a disaster. However, if you’re aware of the risks facing your property, you can take preventive measures. An NHD report also helps you make an informed decision when it comes to buying a house.

For instance, if your newly-purchased home is located in an area where storms are quite common, you can better protect your life and the property. When a storm is expected, you can cover doors and windows, secure objects lying in your yard, water-proof your basement, and get a storm-proof garage door to mitigate risks.

Moreover, an NHD report gives you peace of mind. You can be more realistic and do whatever you can to keep your family safe. It also gives you the opportunity to negotiate the terms of the contract with the seller. An NHD report informs buyers if the property is in a natural hazard zone and helps them make an informed decision. So, before you buy a property, don’t forget to ask the owner to provide you with the NHD statement to be on the safe side.

NHD Companies

There are dozens of companies that provide natural hazard disclosure reports. Here are a few of our highest recommended NHD companies.

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