Disclosure: opportunity for a seller to legally communicate any known property issues to prospective buyers.

It is common knowledge that issues in a property should always be disclosed to potential buyers. Sometimes, this can seem like a setback in a sale, if certain information is more negative or unappealing than the usual problems. But disclosures can act as a benefit in a sale, not always as a drawback. Sharing these should be embraced as part of the selling process, and here’s why:

Avoid long-run consequences

When selling a home, you want to be as accurate as possible about the property. Misleading buyers, intentionally or unintentionally, can lead to years of legal pain. The more thorough you can be about the home, the better protected you will be legally.

Julie Sears was glad that she disclosed a leaky window before selling her property in Seattle, despite accepting a price reduction for the issue.

“The new homeowner was upset about water damage from a recent heavy thunderstorm and was seeking compensation for repairs,” says Sears. “Since I had disclosed the issue upfront, I was protected from any legal action regardless of the subsequent damage.” 

Less is not more

A scantly filled disclosure statement raises a red flag to potential buyers: Is the seller hiding information? Or are they really uninformed about the property they are putting on the market? Instead, mollify any doubts by being detailed with the information that you are able to provide, creating a sense of security for future buyers.

FSSK, a Minneapolis law firm specializing in real estate, says, “Remember that no property is completely perfect. Revealing your property’s potential flaws will not drive away every potential buyer. The disclosure statement simply allows you to enter fair negotiations with buyers.”

Having all details on the table allows you to work through a property’s problems or let the prospective buyer walk, each outcome leading you closer to the right buyer.

The earlier the agreement, the better

There are many aspects to selling a home. The more you can accomplish, the better the process. And if you and a buyer can agree to the disclosure terms earlier in the negotiations, the process will be smoother. If a buyer decides to move on because of the disclosures, then less time has been wasted on an uninterested party.

No property is perfect. The sooner you can disclose information to potential buyers, the sooner you can close a sale while avoiding future headaches.

Article Citation: Woodman, Robyn. February 8,2015. “3 reasons sellers shouldn’t fear real estate disclosures.” The Motley Fool. Retrieved February 28, 2015 from: http://www.fool.com/investing/general/2015/02/08/3-reasons-sellers-shouldnt-fear-real-estate-disclo.aspx
Picture Citation: http://images.wisegeek.com/real-estate-disclosure-form.jpg