Disclosing Your Home's Flaws

Published on December 29th, 2014

Can Disclosing Your House’s Flaws Speed Up Sales?

When initially thinking about telling a buyer about your home’s flaws, the first thing that may come to mind is -- no way! Why would I want to tell potential buyers about all of the problems that are going on inside my home? Many sellers think they should say as little as possible and cross their fingers that the buyer doesn’t discover any issues.

If a buyer goes forth with a home inspection (which they will) and they find the known problem (which they will) the buyer will be less inclined to negotiate with you or it could completely discourage them and they could walk away from the deal altogether. If, for some reason, the home inspector didn’t catch the problems that you didn’t disclose and a major issue is found after the sale, they buyer could have reason to believe that you withheld this information from them. This could lead to a major lawsuit.

Things you should disclose in your listing:

- Leaks in ceilings, roofs, windows, etc. - Flooding of the home

– upstairs or basement - Mold, asbestos, or other toxic conditions

- Faulty electrical wiring

-The presence of termites, insects, or rodents in your home

By disclosing problems like the ones above, you could avoid problems such as - lawsuits, losing money, and wasting time. None of these issues are something that people enjoy discussing and most are problems that people would often want to avoid disclosing at all cost. Because of that, listed below are reasons why disclosing your home’s flaws and getting them fixed before your house is on the market will speed up the sale and keep more money in your pocket.

Having a home inspector view your property prior to listing your home on the market is ideal.

Many sellers may think an inspection is a waste of money if you are planning on selling regardless of what the inspector finds. In reality, you have the potential to make more money if you choose this path. A great list price will bring buyers into your home, but if they find major issues during the home inspection you could lose the deal or they may ask you for more money before signing any contracts.

If you credit the buyer for these problems - your net proceeds will be lower than if you had included the work that needed addressed into the asking price.

Tell your buyer everything.

Revealing all issues and providing disclosure documents before a buyer makes an offer will let them know that they are dealing with a trustworthy seller and this will establish an atmosphere of comfort. Buyers feeling comfortable = buyers spending more money.

Provide your agent with all information on the home.

The listing agent handles everyone in this transaction and they should have all of the information they need to answer buyer’s questions. This information is essential, because if your agent knows about the problems that are going on in your house they will be better equipped to advise you on a pricing strategy.

Avoid lawsuits by having the buyer sign off on disclosed information documents.

As stated in the beginning of this blog, if a buyer feels that after the sale has been made that you didn’t disclose an issue in the house, they can file suit against you. Avoid all of these legal issues by having the buyer put it in writing that they saw all of the disclosed information on your property. Your buyer’s piece of mind will go a long way in a sale. By having your trust and all documentation signed and in writing, your home could sell faster and possibly for more money. If you are selling or looking to buy a new home, reach out to our professional Housing Buzz Specialists today to get pre-approved for your future home

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