3 Items You Must Disclose When Selling Your Home

It is a tale as old as can be that selling your home can get daunting, emotional, anxiety-provoking, and exciting. These are just some of the feelings associated with this tedious process. If this process is slightly less complicated, you should take that approach as long as it is right.

One of the strategies when selling your home is full disclosure. As the seller, you are duty-bound to disclose certain aspects of the house to prospective buyers that may help them decide if they want to proceed. Of course, that might not work in your favor, but it just might.

In our years as a home-buying company in Philly, we have understood that transparency is an essential step in building trust with buyers and avoiding disputes down the road.

The Rule of Three

Now, there can be a hundred things about your home that you may want to disclose, but you cannot make a mountain out of a molehill. You do not need to specify to the buyer that the breeze comes in from the southwest direction, hence the French window in the living room. That is pointless.

We need to focus on the big picture stuff, and I will explain three items that should be the topic of your disclosure conversation as the seller.

Past Repairs

Disclosing past repairs is a keystone of honesty with the buyer. Buyers have the right to know about significant repairs that were necessary and how you undertook them. Knowledge about past repairs is a strong deciding factor for the buyer. A prospective buyer may not want to buy a home that has undergone major system-related repairs. Conversely, another prospective buyer may appreciate this information.

Past repairs matter because they can cause potential vulnerabilities in the home. For example:

• If the foundation has been repaired, buyers will want to know if the issue has been permanently repaired.
• A repaired roof could be a selling point, but buyers will want assurance.
• Major repairs to the HVAC system could affect the functionality of the home.

By disclosing these repairs upfront, you demonstrate honesty and help potential buyers feel confident about their purchase.

As a seller, you could disclose past repairs in the following way:

• Provide documentation from licensed contractors.
• Be specific about the details of the repair such as when, why, and what work was performed.
• Include the information in the seller’s disclosure statement.

Failing to disclose past repairs can lead to legal consequences, especially if the issues resurface after the sale.

Neighborhood Disputes

I love my neighbors. We have barbeques, we go hiking, and a lot of other fun activities. But that cannot be the case for everyone. Disclosing disputes with neighbors is essential when selling a home. These disputes could include disagreements over property lines, noise, complaints, or shared responsibilities.

Neighborhood disputes can significantly alter a buyer’s perception of the property. Here are some common scenarios that we have come across over the years:

• Conflicts over boundary issues can lead to legal and financial troubles for new homeowners.
• If your neighbors frequently loud parties, the buyer deserves to know.
• Ongoing disagreements about maintenance or costs for shared features (driveways or fences) can create tension.

Being transparent about these issues will make buyers aware of the potential challenges before they commit.

Some methods to disclose neighborhood disputes include:

• Clearly state the extent of the dispute in writing.
• Provide documentation if applicable.
• Explain the steps you have taken to resolve the conflict or if there are any ongoing conflicts.

Transparency about neighborhood dynamics can save both parties time and stress, and it helps protect you from misrepresentation.

Presence of Pets

This might seem like a strange disclosure, but it is much more significant than many sellers realize. Buyers may have allergies or personal preferences that make this information crucial. I had this issue when attending open houses where the owners had pets. My allergies flared up, and the whole experience became difficult for me.

Pets can leave lasting effects on a home even after they have moved out:

• Persistent pet odors can be challenging to remove.
• Scratches on floors or damaged doors are common pet-related issues.
• Pet hair can trigger allergic reactions even after a thorough cleaning.

For buyers, knowing about the presence of pets allows them to make informed decisions.

You could disclose the presence of pets by:

• Stating the facts about whether pets lived in the home and for how long.
• Mentioning any cleaning or repairs you have made to address pet-related issues.
• Provide documentation if possible.

Honesty about pets can prevent disputes and foster a smooth selling process.

Why Is Full Disclosure Critical?

Failing to disclose critical information can lead to severe consequences for the seller.

• Buyers could sue for damages if they discover undisclosed issues after the sale. I am aware of a case where both parties spent years in litigation.
• In some scenarios, sellers may be required to cover the costs of repairs or other expenses resulting from non-disclosure.
• A reputation as a dishonest seller can affect your ability to engage in future real estate transactions. Someone reached out to us in Philly to help them sell their home, but their intentions were questionable, and we did not engage.

Final Thoughts

Now we know why honesty is the best policy. When you sell a house, disclosures are a way to develop opportunities to foster trust between all parties. A seller’s transparency and integrity could help the buyer make informed decisions. It could also result in a smoother transaction, fewer disputes, and a better experience for everyone involved.