Here are a few important things to disclose before a home is sold.
If you’re making an offer on a house, one of the first things you’ll get from the seller is a property disclosure. This is also referred to as a property disclosure statement, a real estate disclosure form, or a home disclosure.
Most states require some type of seller disclosure. The goal is to add transparency to the transaction.
In this disclosure, a seller provides written information about known things that could impact the property’s value. There are a number of different things you have to disclose as a home seller, but today I’m going to highlight a few of the most-forgotten (and most-impactful) items:
1. HOA information. If the home is located within a homeowners association, you should disclose that fact. Associations generally impose monthly fees on homeowners, and they can impose rules on their membership that a prospective buyer might or might not find acceptable. You also need to know about the HOA’s financial health and provide this information to the buyer so that they can make an informed purchasing decision.
2. Repairs. If your home has major structural issues, you obviously have to disclose them to a potential seller. In addition to repairs that need to be made, you must also disclose repairs that have been completed in the past. Buyers need to know the home’s repair history to have their home inspectors pay extra attention to problem areas so that they’re aware of probable future issues. You may also want to disclose electrical or plumbing repairs and any other problems you would want to know about if you were going to buy the home and live in it.
3. Age of the big-ticket systems. We always recommend that our buyers consider this when they’re interested in a property. Look at the age of the systems on the disclosure, specifically the age of the roof, the HVAC, and the windows. These are the three most expensive items to replace in a home, so it’s good to know if you’ll need to replace them soon.
The key thing to remember about disclosures is that when you’re in doubt, disclose. Failing to disclose something you were aware of beforehand could lead to a messy legal situation.
If you have any questions about what you need to disclose when selling your home or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.