Honesty is always the best policy. This is especially true when selling a home.
Every home has undergone some type of repair. Some homes are even sold that are in need of repair. The best thing a homeowner can do is disclose all information about the condition of the home. Most buyers will discover whatever it is you are trying to hide. Whether through the nosy neighbor or when they move in. Problems do not go away just because you move out. Do not let a $1000 repair lead to a $200,000 lawsuit. It is just not worth it.
Most states require sellers to disclose property condition. In Texas, it is a law that falls under the Texas Property Code. Also, if you choose not to be honest, do not involve your Real Estate Agent. Because it is the law, if you tell them a condition problem, they must also disclose it (even if you don’t).
To give an example of this. I was handling a sell on a property on a couple who where getting divorced. The wife would fill something out. She then would give it to the husband to look over and have him fill in the rest. They did this with every form including the property condition form (in Texas it is called the Seller’s Disclosure Notice). They mention to me they are going to put up some blinds. They proceed to tell me that several windows have broken window seals and the windows have fogged. Even though they were both involved with the paperwork no one wrote it down on the form. The problem is, we all KNOW the problem exists. To hide it is not only dishonest but against the law.
Long story short, a Real Estate Agent calls me and says she has some clients who want to submit an offer. I tell her that the house has several broken window seals and the buyers need to take that into consideration. She adds it to the property condition form and everyone signs it. The sellers still sell the home and are happy. And no lawsuit resulted.
Not only do agents have to obey the law but to have it disclosed up front also helps the seller in negotiations.
Here is another example. I was helping a repeat client sell his house. He had a pool and the house backed to a green way. The problem was a small section of fence had broke and he had it tied up with a piece of rope. He disclosed this in the disclosure. He gets an offer that he accepts. Then the buyer comes in and inspects. The house had no problems found during the inspection except the fence and a pool filter. The buyer decided they want the fence repaired because of the pool and green way along with the pool filter. I encourage the seller not to do the fence because the buyers offer should have reflected this repair. I talk to the other agent about it. I also explain to her how most sellers price their home according to the amount of needed repairs. She reluctantly agrees with me. My seller repairs the pool filter. The house sells and the seller is happy about having saved some money.
I keep a book holding all my receipts on my rent house and my personal house. When I go to sell I will give this to the buyer(s) to review. I personally think this will HELP the sell of my home when the time comes. The buyer will feel secure in knowing I am honest, and that I maintained our home(s). I also think that will help to get a better price for these homes.
So remember, honesty is always the best policy!
Leave a Reply