The Seller’s Disclosure: Honesty Builds Trust

Marsha’s Home Selling Series — Part 5 of 7

What buyers discover matters. What they discover unexpectedly can matter even more.

When you’re preparing to sell your home, there are many things competing for your attention. You’re getting the house ready, thinking about showings, packing, and probably planning where you’re going next.

Then you’re handed a Seller’s Property Disclosure to complete.

It can be tempting to look at it as just another form.

It isn’t.

The Seller’s Disclosure is one of the most important documents you’ll complete when selling your home.

Buyers Really Do Read the Disclosure

Many buyers receive the Seller’s Disclosure before making an offer, and some read every question carefully.

They aren’t necessarily expecting a perfect home. Homes have histories. Roofs leak. Plumbing needs repairs. Basements sometimes get water. Heating systems are replaced.

What buyers want is an honest picture of the home they’re considering purchasing.

The problem often begins when what they read on the disclosure doesn’t match what they later discover.

I’ve seen this happen more times than I care to remember.

The buyer reads the disclosure, makes an offer, and the offer is accepted. Then we attend the home inspection.

The inspector discovers something that wasn’t disclosed.

Almost immediately, the buyer asks:

“What else are they hiding?”

That one question can change the entire tone of the transaction.

Sometimes It Really Was an Honest Mistake

An undisclosed problem doesn’t necessarily mean a seller was trying to hide something.

Maybe there was a leak years ago. The seller had it repaired, never had another problem, and simply forgot about it.

Maybe something happened so long ago that it wasn’t even on the seller’s mind when completing the disclosure.

And sometimes, the seller truly doesn’t know there’s a problem.

I had one transaction that I’ll never forget.

The property had what everyone believed was a brand-new heater. No one had lived in the house since the heater was replaced, so the seller had no reason to believe there was a problem.

Then we had the home inspection.

When the inspector examined the heater, we discovered that there was essentially nothing inside the heater casing.

Apparently, the contractor had started the installation, was pulled away from the job, and intended to come back and finish it.

That never happened.

The seller didn’t know the installation had never been completed.

Unfortunately, from the buyer’s perspective, something had changed. He thought he was buying a home with a new heater and suddenly discovered that wasn’t the case.

The seller explained that they hadn’t known.

But the buyer no longer trusted the seller’s word and decided not to move forward with the purchase.

At that point, the problem wasn’t only the heater. The problem was trust.

Once Trust Is Lost, Everything Can Look Different

I’ve seen this happen in other transactions, too.

Once buyers begin to wonder whether something was withheld from them, they may look at every other issue differently.

A small item they might normally have accepted can suddenly become important. They may scrutinize the inspection report more closely or ask for items to be repaired that otherwise might not have concerned them.

And depending on the terms and contingencies of the agreement, they may decide they no longer want to move forward.

That’s why I encourage sellers to slow down when completing their disclosure.

Take your time. Think back.

Was there ever water in the basement?

Did you have a roof leak that was repaired?

Have you had electrical or plumbing work done?

Was there an issue years ago that was corrected and hasn’t caused another problem since?

Something may feel unimportant today because it was repaired years ago. But that history may still be important information for a buyer.

Keep Your Records

This is also why I encourage homeowners to keep records of repairs and improvements.

Receipts, invoices, warranties, permits, and contractor information can be very helpful when it’s time to sell.

If you had a problem and had it professionally corrected, being able to show what was done can take some of the uncertainty out of the situation.

Instead of a buyer wondering, “What happened here?”, you may be able to show them.

“Yes, there was a problem. Here is what we did to correct it.”

That can be a very different conversation.

Your Home Doesn’t Have to Be Perfect

This may be the most important thing I want sellers to understand.

Buyers don’t expect every home to be perfect.

A properly disclosed problem can sometimes be much less concerning than a problem the buyer discovers unexpectedly.

If you tell buyers there was once a leak, explain that it was repaired, and have documentation when available, you’ve given them information they can consider when making their decision.

But if they discover evidence of that same leak during the inspection and weren’t told about it, their reaction may be completely different.

The physical problem hasn’t changed.

Their confidence has.

And once confidence is lost, it can be difficult to get back.

Marsha’s Tips

• Take your time and read every disclosure question carefully.

• Think about the entire time you’ve owned the home, not just its condition today.

• Don’t assume that because something was repaired, it no longer matters.

• Keep records of repairs, improvements, warranties, invoices, and permits when available.

• If you genuinely don’t know an answer, don’t guess.

• If something changes after you’ve completed the disclosure, tell your Realtor.

• If you’re unsure about your legal disclosure obligations, seek appropriate legal guidance.

The Seller’s Disclosure isn’t about making your home look bad.

It’s about giving buyers the information they need to make an informed decision and helping preserve the trust that can carry everyone from an accepted offer all the way to settlement.

Coming Next: Part 6

Once your home is prepared, priced, photographed, marketed, and the disclosure is ready, buyers are going to start walking through the door.

In Part 6 of my Home Selling Series, we’ll talk about showings and open houses—how sellers can help buyers feel comfortable, give them the space they need to really look at the home, and help their property make its best impression.

Putting You 1st Is 2nd Nature!