Christian Real Estate Blog

Home sellers beware::: Undisclosed info comes back to bite

Inman Real Estate News - Home sellers beware: Undisclosed info comes back to bite: "You're getting ready to sell your home. The market is a bit softer than it was a year ago. There's more competition from other sellers.

So, you plan to tidy the place up and you're thinking of down playing the defects. After all, who would buy your place if you revealed the trouble you had with the roof or the fact that your neighbor's son practices on his drums past most people's bedtimes?

Sellers beware! What you don't disclose to the buyer could come back to bite you."

Disclosure laws vary from state to state. Check with your real estate agent or attorney if you have any questions about your disclosure obligations. The trend nationally is toward requiring sellers to disclose more about defects that they're aware of, not less.

For the past few years, buyers have paid record high prices for homes. In some cases, they waived their rights to inspect the property. As the market softens, buyers are less likely to be forgiving of defects they discover after closing, especially if they're sure the seller concealed them.

Your aim is to sell for a nice price and bank the profit. Misleading the buyer about the condition of your property can have serious consequences. Don't risk diminishing your sale proceeds in a legal action. Thorough and careful disclosures not only protect the buyer, they also protect you.

Most home buyers appreciate knowing as much as possible about a property before they buy it. They can usually live with the fact that the place isn't perfect as long as they have a chance to investigate and digest this information upfront. Law suits can develop when material information is withheld, or when buyers are intentionally deceived.

It's a good idea to disclose what's wrong with your property, as well as past problems that you've repaired and areas that require routine maintenance to keep problems from occurring."

posted by Justin Smith @ 12/28/2005 09:42:00 AM