Here’s what you must disclose about your home before selling it.
It’s been a blazing-hot seller’s market for the past year, so many buyers have been waiving things like inspections and appraisals in order to keep their offers competitive. However, that doesn’t mean that sellers are allowed to keep quiet about their home’s issues. In fact, there are 10 things that a seller should disclose when they list their home. These disclosures include:
1. What you have (and don’t have): This includes things like whether your heat is gas or electric, the number of units your home has, automatic garage door openers, sprinkler systems, etc.
2. Your roof’s condition: Let them know as much as you can about your roof. If you’ve replaced it, provide documentation. If it’s in need of repair, let them know.
3. Known defects or malfunctions: You need to make buyers aware of any problems with your home’s systems.
4. Significant adverse conditions that were fixed: Even if you’ve addressed a major problem already, the buyer should still know. For example, if you had foundation repairs done on your home, you still need to disclose it.
5. Items that need repair: Let the buyer know which systems or equipment need to be fixed.
6. Deferred maintenance: Disclose anything that you know is wrong with your home, such as wood rot or nonfunctional systems. Get them fixed if you can, but if not, disclose it.
7. Flood zone and water damage: Sellers are now required to disclose information about flood zones and past water damage.
8. Homeowners association: It’s important to let buyers know if your home is part of an HOA. You should also disclose the required dues, amenities, and contact information for the HOA.
9. Legal issues or deed restrictions: Disclose any lawsuits or legal proceedings involving your home.
10. Insurance claims: Many of us had roof replacements due to storm damage, and you’ll need to disclose these claims and repairs.
If you had any licensed inspections done within four years of listing your home, you need to disclose them as well. I advise sellers to avoid pre-listing inspections, as they have to disclose them after getting them done. Even if you fix everything, it’s all disclosed, and the buyer will likely get another inspection anyways. Every inspector is different, so one will catch things that another won’t; this can easily lead to additional fixes you’ll need to complete and disclose.
In the end, over-disclosure is always better than hiding issues about your home. If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.