What to disclose as a home seller

Key insights:

• As a home seller, you’ll need to disclose all the defects of your property to potential buyers.
• Prior to listing your home on the market, write out your disclosures — or hire an inspector if you’d like an expert’s opinion.
• By not disclosing known issues, you can put yourself at legal risk for years to come.

Every house has its quirks. From sensitive plumbing to squeaky staircases, it’s easy to get used to the issues of a home when you are living inside its walls. When it comes time to sell, however, it’s important that you share all of your home’s issues with potential buyers.

Put most simply, sellers should disclose to the buyer what they would want to know about their next home. That way, buyers can make an educated decision about whether or not the property (with its unique quirks or even defects) is right for them.

How to determine your home’s disclosures

To get started with your list of disclosures, do a thorough walk-through of each area of your home, including the garage, from both the interior and exterior. Write down any visible defects, as well as your recollection of past issues.

If you co-own the property with a spouse or partner, perform this inspection together, so you have the benefit of your collective memories.

Common disclosures include:

• Issues with plumbing, sewage or water leakage
• Property drainage or flooding issues
• Heating and cooling issues
• Cracks in the foundation or roof, damage to the eaves
• Animal damage — including from pets, rodents or termites
• Issues with neighbors, including tension over property lines or exterior updates
• Seller bankruptcy or other significant financial issues
• Past issues related to the property’s title

Hiring a pre-sale inspector

If your home is older or you’re genuinely not sure what to disclose from the above list, consider hiring an inspector before you put your home on the market. Buyers typically hire an inspector when making an offer, so it can be advantageous to know ahead of time what they will find.

A home inspection should unearth all the potential problems that would hinder buyers from purchasing. Once the inspection is complete, you should disclose all the issues found by this professional, plus any other defects you know of that weren’t covered in the inspection.

"Should I risk not disclosing something?"

Absolutely not. Failing to disclose a property flaw or damage to any of the home’s systems is extremely risky. It’s possible that your buyer could take legal action against you if they determine that you failed to disclose a property defect or issue.

Consider, for example, that your property’s drainage is lacking and despite getting a quote from a drainage expert a few years back, you never got around to fixing it. Now imagine that you sell your home and fail to disclose this issue to the buyer.

It’s feasible that, after the first big rain, the drainage company will drop by with a special offer. Alternatively, your neighbor could mention to the buyer that you knew about but never fixed the drainage issue. In either case, it would be clear that you failed to disclose the issue and you could be on the hook to pay for the repair even though you don’t own the property anymore. Failing to disclose is simply not worth the risk.

The short answer: Disclose everything

Though home inspections often reveal minuscule problems, such as a small crack in the wall, it is still important to disclose any and all issues. What may seem like insignificant problems now could balloon into major fixes, and the new owners may decide you were disingenuous for not reporting them.

Still unsure? That’s what your REALTOR® is for! Your real estate agent will be up-to-date on the state laws with which you must comply, so defer to them if you’re uncertain.

Reach out to Edina Realty’s Customer Care team if you’d like to be introduced to a local expert who can help you with disclosures — and get you to the closing table with a fair price.