What Should I Know About Disclosing Information Regarding the Home I’m Selling?
For many, one of the most dreaded parts of selling a property is the seller’s disclosure – that annoying document that asks you what often feels like an unending list of questions. How many ceiling fans are in the property, what’s the make and model of each appliance, how old is the roof, A/C system and so forth. Really? Do you have to answer these questions and all of them? Unfortunately, if you are planning on legally selling the property – yes. All questions have to be answered in full and to the absolute best of your knowledge.
Sellers should note that while the disclosure form is pesky, it is also one of the absolute most important documents that a buyer closely scrutinizes prior to going under contract. This means that if there are any blank questions or ambiguities, odds are you will be asked for more information or for further clarification and it could delay or prevent a buyer from moving forward.
Here are 5 tips to help you get past this stressful part of the selling process, and move on to the next step of the sale.
Be Upfront
Answer every question to the best of your knowledge. If there was something that happened in the past that resulted in major repairs being done, or a potential future problem provide as much information as possible. Buyers want to know when the issue occurred, the nature of the damage and what was done to repair or address the issue. If an insurance claim was filed, be sure to note that and what the outcome was as far as coverage. The claim could very well turn up when the new buyer works on obtaining insurance – better for the buyer to learn about it from the disclosure first. Make sure that you attach any relevant paperwork as well such as receipts or invoices. Buyers need assurance that all adds up. Put yourself in their shoes, what would you want to know about a property that you are purchasing?
Do not Beat Around the Bush
Do not leave a buyer guessing, or having to assume this or that. The best way to do this is to avoid vague answers or leaving questions blank. Doing those things will only raise more questions for a buyer. If you don’t know or the question is not applicable to your kind of property, note that.
Research!
If you purchased your home within the recent past and had a home inspection, that document can be a useful reference as to the make, model and age of certain components in your home such as the HVAC, water heater, etc. Keep in mind that if you have replaced any of these items, then you will need to include that and all related information on the disclosure forms too.
Be as Specific as Possible
Don’t rely on the buyer to figure this stuff out. If you have any information regarding the age of the various components, be as accurate and specific as possible. This can be done quite easily if at any point you had a four point inspection for insurance purposes at the time of purchase, that could tell you the age and type of many major components such as the roof, plumbing and electrical. Use this to help determine the present age when you are completing the disclosure.
Set Expectations
The biggest challenge for disclosures arises when the party selling the property has never occupied it or only lived in it for a brief period of time. Be sure to clearly state what your occupancy situation was and to what extent if any, you have knowledge about the property. Setting proper expectations upfront in this regard with potential buyers is important.
If necessary, attach an additional explanation for anything that requires more information than what the form provides. Make sure all information is legible and will transmit clearly across a variety of mediums when printed, emailed, scanned or faxed.