What Should You Disclose When Selling Your Home?thelasvegasluxuryhomepro.com /blog/what-should-you-disclose-when-selling-your-home.html

Sellers Real Property Disclosure Bloopers

Some home buyers are getting more than they bargained for. Have you heard about the New Jerseyhome with a stalker? New homeowners received threatening letters shortly after moving in. The writercalls himself the "watcher". He claims the home has been "watched" by his family for decades. First byhis grandfather in the 20s, his Dad in the 60s and now it's his turn. He wants "young blood".

The situation has resulted in alawsuit. The new owners claim thesellers knew a creep was lurkingaround. And the sellers claim theyhad no knowledge of the stalker.

Easy to understand howreading the "Stalker's"letters would scare the newowners. The authorities and/orcourts may decide if the sellersknew about the psycho. This isan extreme example of what canhappen when new owners findbad surprises.

How Much Should YouTell Your Home's New Owners?

Most Homeowners get nervous when presented with "Seller's Real Property Disclosures". They wonderwhat they should disclose and worry that they might forget something. The best way to approach theSeller's Disclosures is "take the high road". Ask yourself if you would want to know about the issue inquestion. If the answer is yes, then disclose it.

The rules vary from State to State. In California, sellers have to disclose if there was a death at thehome. In Nevada the seller isn't required to disclose a death unless the buyer asks. If the buyer asks,the seller is required to answer truthfully. Different States, different laws.

There are some basic disclosures you should be prepared to make in any State. Each State has itsown Seller's Real Property Disclosure Forms . They ask questions about electrical, plumbing, and allthe operating systems of the home. Fixtures like showers, sinks, range, dishwasher and hot water heatersare included.

If your hot water heater broke down a couple of years ago and was replaced, let the buyers know. They'llbe happy to have a newer hot water heater. Routine maintenance doesn't have to be disclosed. Example - Getting a repairman out to fix the front doorbell. Unless it's a recurring problem that might beelectrical, no need to disclose it.

What Should Be Disclosed When Selling Your Home?

Be honest about any issues with the home's appliances and operating systems. Are you aware of anystructural defects? If you've had problems with a leak in the roof, let the buyers know. Save all receiptsfor any repairs.

Structural Defects

Sinkholes aren't common in most parts of the Country. A couple in Florida recently made ABC Newsheadlines. The woman who bought their home discovered a sinkhole underneath the home. The couplehad accepted a $153K check from their insurance company.

The courts will have the final say on the sinkhole case. On top of financial damages, they're facing 20years in prison. This could have been avoided if they had disclosed the sinkhole.

If the sellers hadn't been aware of the sinkhole, it would be a different story. Their attorney admitted theyspent "some" settlement money on fixing it. I'm not an attorney but sounds like they knew about it.

We don't have sinkholes in Las Vegas. Other structural issues can occur. If you are aware of a crack inyour home's foundation, disclose it. If you know the roof needs to be repaired or replaced, disclose it.

Water Damage and Mold

A bathtub drain that's slow is something that should be fixed. Fixing a slow drain or a leaky faucet isroutine maintance. Once repaired, it doesn't have to be disclosed.

If there is any water damage , then it must be disclosed. You'll need to tell the buyers where the waterdamage occurred. Did floors and drywall have to be replaced? How soon were the repairs made?

Mold is always a concern whenthere's water damage. The moisturecan create an environment that allowsit to grow. If you suspect mold, hire alicensed Mold Inspector to perform thenecessary tests.

If the results are positive you'll need alicensed mold remediationcompany. You'll want someone whowill warranty their work for at least ayear or two. They will remove dry walland other materials that are beyondrepair. They'll spray chemicals to killthe mold and keep it from growingback. After the work is complete, haveit tested again. You will need a"clean mold test" to show thebuyers.

Buyers may back out if theydiscover mold as part of their home inspection. Some buyers want nothing to do with a home that's had amold issue. If they don't cancel, you will have to negotiate what to do about the mold problem. They may

require you to have the mold remediated. They may ask you to drop the price.

It's better to deal with mold as soon as it's discovered. Once you know about it, you will have to disclose itto any buyers. Take care of the problem and document the repairs. Bill Gassett has given us an excellentarticle on "Selling a Home with Mold".

Construction Defects

If your home is involved in construction defect litigation, it must be disclosed. This includes litigation filedby the Homeowner's Association on behalf of the community.

Kitec plumbing has been an issue in Las Vegas and many States. If your home has Kitec plumbing, itisn't a question of "if" it will have a leak but "When". Most homes in Las Vegas have had the Kitecreplaced. Our builders haven't used Kitec in over 5 years. Still, we run across the occasional home thatstill has the old Kitec. Any licensed home inspector should be able to tell if a home has Kitec. Sellersshould always disclose if their home had it and if it's been replaced.

Expansive soils is rare but it has led to litigation. Fifteen years ago, a settlement awarded $21 Million tohomeowners in a North Las Vegas subdivision. The three developers involved in the suit are now defunct.

Those are only some examples of construction defects that can affect your home. If your home is involvedin any sort of litigation, let the buyers know.

Pests and other Annoyances

We recommend homeowners have their homes sprayed for pests once every month or two. Staying ontop of the pest issue is the best way to avoid having a problem. We seldom see serious pest issues butthey can happen.

One final example that we've seen in the news is the Maryland home that's infested with snakes. It'sanother situation where the courts are likely to have the final say. If the sellers knew about the snakes,they will probably lose the suit.

Luckily, most areas don't have snake populations. If you have a pest problem don't try to hide it. Hire apest control service to eradicate the problem.

Disclose, Disclose, Disclose

These are only some of the items that can create problems if you fail to disclose them. Another commonissue we see is having work done on the home without proper permits. This is a situation that may evenprevent the buyer from qualifying for their mortgage if the illegal work is discovered.

Sellers who haven't lived in the property are well advised to disclose everything they know. If a tenanthas lived in the home the seller will probably only know about things the tenants reported. No one expectssellers to disclose things they don't know. They must report anything they're aware of. Make sure theproperty manager keeps a record of all repairs, improvements, etc. They will be useful when selling ahome long distance.

It is in your best interest as well as the buyers if you disclose all pertinent details. This allows thebuyers to have the problem inspected and make an informed decision about purchasing your home. Makesure to avoid any pre-sale and staging tricks. The buyers may not discover the issues during theirinspection but they will when they move in. Then you could be liable for much more than the cost ofthe repairs.

Debbie Drummond is a Full Time Realtorwith over ten years experience in the LasVegas Real Estate Market. She and herteam of Real Estate Pros offer thehighest level of service. If you’re buyingor selling a Las Vegas home, call(702)354-6900 or emailDebbie@LVHomePro.com. They’ll be happy to assist you in your move.