Seller Disclosures: What You Need to Know

If you're a homeowner who will be selling your home sometime soon, you will need to know what disclosures are and why they are important. Here's what to know.

Seller Disclosures: What You Need to Know Close
Page Summary

Seller Disclosures: What You Need to Know

Posted by Gary Ashton on Tuesday, March 10th, 2020 at 7:14am.

Everything Homeowners Need to Know About Disclosures When SellingAre you selling your Old Hickory home? If so, you'll need to deal with disclosures. Knowing what disclosures are and writing disclosures properly can help you sell your house. Disclosures are a part of the home's buying contract. If the disclosures are not written properly, this can cause problems for sellers and buyers. Here's what you need to know.

For informational purposes only. Always consult with an attorney, tax, or financial advisor before proceeding with any real estate transaction.

What Are Disclosures?

In the disclosures section, the homeowner lists known defects with the house. Typically, only certain defects need to be listed. Small defects, like holes in the wall, or a broken door knob, do not usually rise to the level of needing disclosure. In most cases, only serious problems are disclosed on the home's buying contract. Laws may vary from one state to another, so it's important to follow the advice of a real estate professional when deciding what to disclose.

Why Are Disclosures Important?

Disclosures help home buyers go into the home-buying process with eyes open. Home buyers who are not told about serious defects with the home could find themselves committed to purchasing a house they cannot afford to repair. A homeowner who fails to disclose important information to home buyers in the disclosures section of their home's buying contract could face legal retaliation later on. For these reasons, its best to be very careful and thorough when recording disclosures on the home's buying contract.

Homeowners who are concerned about the disclosures section of their home's buying contract reducing the value of their home can make repairs before listing their house for sale. Some defects can seriously impact the value of a home. Making the repairs before listing the home is the best way to protect the home's value.

What Must Be Disclosed to the Buyer?

Generally, serious problems like foundation damage, broken appliances, roof leaks and pest damage are the types of things that must be disclosed to the home buyer. Since the disclosure requirements can vary from one state to the next, homeowners must work closely with their real estate professional to ensure the disclosures are properly filled out.

Can Disclosures Affect Home Purchase Negotiations?

Yes, disclosures can affect home purchase negotiations. Often, home buyers who learn about serious problems through the disclosures section of the home purchase contract may choose to negotiate the price of the house. In some cases, the home buyer may ask the homeowner to fix the problems with the home, and in other cases, home buyers may even walk away from the purchase altogether.

There are many ways that homeowners can prevent a home buyer from walking away from a home purchase. First, homeowners can price their home correctly. A well-priced home, even with a known defect, can be attractive to home buyers. Second, homeowners can do what they can to stage their home and boost curb appeal. A beautiful home is more likely to attract a home buyer and keep the home buyer interested, even if the home has a serious defect. Third, it's important to work with a real estate professional who can navigate the negotiation processes easily.

Want to Do the Disclosures Properly? Work With a Real Estate Professional

If you're a homeowner who is selling your home, work with a real estate professional. Your real estate professional can help you fill out the disclosures correctly and price the home right. This can help you sell the home quickly.

For informational purposes only. Always consult with an attorney, tax, or financial advisor before proceeding with any real estate transaction.

Leave a Comment