It’s tempting to pull the wool over buyers’ eyes and hide information that could negatively affect your home’s sales price, but is it worth the risk? Non-disclosure might result in contract termination, sanctions, or, in the worst case, a potential lawsuit later on. So to help you sell your home successfully and avoid potential legal issues, we’ve consulted professionals and found out about the seven most important things to disclose when selling your home. Continue reading and be fully prepared for your exciting real estate adventure!
Which things do you have to disclose when selling your home?
Consumers have had a legal right to be happy with the things they purchase since the 12th century. It stems from the medieval principle of caveat emptor (let the buyer beware). This allows buyers to inspect and handle commodities such as meat and fruit in marketplaces before deciding whether or not to purchase them.
Even if you don’t feel happy about it from the seller’s point of view, remember that you’ll be on the other side soon. These regulations will also protect you when buying your next home or deciding which movers to hire for your upcoming long-distance move. You want to make sure you have the right team with you, and laws such as this give you the certainty that you’ll get what you were promised and paid for.
But let’s get back to selling your home. Further in this article, you’ll find out the seven most important things you need to disclose to potential buyers. Keep in mind that most of these regulations vary from state to state. This means that, depending on where your home is, you might get away with hiding some of the things mentioned below.
#1 Hazards
If there are any safety hazards on your property, buyers will have to know about them. For example, if your residence is at a greater risk of natural catastrophe damage or has known environmental pollution. Hazardous or toxic waste, asbestos, lead-based paint, previous use of the premises for the manufacture of methamphetamine, and similar are all items that you need to disclose. Also, depending on the state your property is located in, you might need to disclose mine subsidence, subterranean pits, settlement, sliding, upheaval, and other earth-stability flaws.
#2 Information about homeowners’ association
If your home is governed by a homeowners’ association (HOA), this is something you need to disclose when selling your home. HOAs typically charge monthly fees. Also, they might impose membership conditions that a prospective buyer may or may not want to accept. It’s also important you’re aware of the HOA’s financial situation and present this information to the buyer. This way, you’ll help them make an informed purchase decision.
#3 What have you repaired and why?
Another thing you should disclose when selling your home is what you repaired around your home and why you did it. You should present buyers with your home’s maintenance history. This way, their home inspectors can pay special attention to problem areas and alert them to potential future difficulties. It’s especially important to disclose any previous structural or roof repairs. Also, don’t disregard landfill, settling, soil movement, fault lines, or any current defects. Basically, reveal any issues that you would want to be aware of if you were planning to buy and reside in the house.
#4 What comes with the property
Some homebuyers may not notice until their move-in day that something they expected to find is missing from their new residences. Whether it’s a light fixture, a refrigerator or microwave, or even fitted blinds, the seller might be very disappointed not to find them there. Therefore, it’s important to let the buyer know what items are coming with the property. However, depending on your state, this rule might not apply to you or come with certain limitations. So reach out to your Realtor® as they’ll surely have all information you need.
#5 Neighborhood nuisance
A neighborhood nuisance is usually noise or odor coming from outside the property that irritates the occupants. Although some of them might be obvious to buyers as soon as they approach your property, it’s never a good idea to hide the ones that aren’t. Even if you have had any disputes with neighbors, it’s good to share this information with potential buyers. That way, if they decide to purchase your home, they’ll be ready for a potential issue, and they’ll know how to deal with this maturely.
#6 Water damage
When water gets into places it shouldn’t, it can ruin personal belongings and undermine the house’s structure. On top of that, it can even pose a health risk by promoting mold development. So as a seller, it’s important to disclose any leaks or water damage from the past. In most states, you must reveal signs of water in a basement or crawl space, roof leaks, severe flood damage, and any known plumbing issues.
#7 Death in your property
Some buyers might get worried or have superstitions about purchasing a home where someone died. If this happens in your home, you will most likely have to disclose it. In Florida, for instance, this fact doesn’t have to be revealed, but every state has different disclosure rules regarding this. However, as a seller, you are obligated to disclose deaths related to the property’s condition or violent crimes. However, there is no requirement to reveal the death of a person who died under natural circumstances in any state.
Don’t forget to disclose this information when selling your home!
Keeping secrets and hiding things from buyers will make them lose trust when they eventually find out about the problem. On top of that, even the smallest deceit could result in legal actions being taken against you. So to avoid this, when selling your home, make sure to hire an experienced Realtor®. In addition to that, make sure to know what to disclose when selling your home. Be honest with your buyers and disclose everything you would like to know if you were in their position. After all, you wouldn’t like to be lied to when making such a significant investment