Selling Your Home – Consequences of Failing to Disclose

Once you make the decision to sell your home, you have to take a close look at its positives and negatives. Many of the negatives you identify must be disclosed to potential buyers if they are significant.

Temptation. In the early part of this decade, no seller was really tempted to "forget" to disclose certain things. Why? Well, the market was so hot that buyers were more than willing to buy less than perfect homes. Obviously, that is no longer the case.

These days, the real estate market is slow, slow, slow. The problems we are seeing in the real estate market suggest this slow pace is not going to change for some time. As a result of all of this, sellers are having a more difficult time moving their homes. Since disclosing potential problems with the home is a hindrance to selling, more than a few sellers have failed to mention all that they should.

So what? Isn't this really a case of buyer beware? Well, no. We are talking about a business deal that will probably be the biggest financial move of the buyer in their life, or at least until they move up to a bigger, more expensive home. In most states, this means the government has put in some safeguards.

In most states, a buyer who feels he or she has been sold a lemon has a couple of options. They can sue for breach of contract [the real estate contract] or seek a rescission order from a judge. In either situation, the seller is looking at paying attorney fees at a minimum. If a judge or jury agrees with the buyer, the seller is most likely going to have to take back the house, return the sales price and pay the buyer's attorneys fees. In short, a disaster for the seller.

So, what are common issues that sellers fail to disclose? How about a death or murder in the home? Flooding, grading and drainage problems are also high on the list as the buyer usually has no ability to experience this in the middle of summer. Horrific neighbors are also an issue that can arise.

If you are attempting to sell your home in this slow market, you may be tempted to forgo certain disclosures. Don't! It will come back to haunt you.

Raynor James is with FSBOAmerica.org - list your FSBO property for 1 month free at FSBOAmerica.org.