What Buyers Should Look for in a Seller’s Disclosure

Purchasing a home is generally considered to be the most significant investment that a person can make in their lifetime. With such a crucial investment comes the need to review every aspect of the home and corresponding documents extremely carefully.

One document that is critical for home buyers to obtain and review closely is the seller’s disclosure, which provides incredibly valuable information about the home.

By being equipped with a seller’s disclosure, a home buyer can determine key next steps in the buying process.

What is a Seller’s Disclosure?

A seller’s disclosure is a legal document provided by a home seller that details essential and critical facts about the property and the property’s condition. These details encompass the full picture of the home and its condition to the best of the seller’s knowledge.

A seller’s disclosure is conducted prior to the sale of the home and is provided to the home buyer. Most states require a seller to provide this document to prospective home buyers, though the specifics of the document can vary depending on the state where the home is located.

The seller’s disclosure highlights the overall condition and full history of the property that they are selling. By disclosing these facts about the home in question, prospective home buyers can evaluate the extent of potential issues that may arise in the future.

Having this information allows prospective home buyers to adequately budget, plan ahead for potential or probable repair needs, negotiate their closing terms, or even determine whether or not they will make the investment and purchase the home.

Why is a Seller’s Disclosure Important?

A seller’s disclosure is critical: it informs potential home buyers about the state of the home, including defects and details that aren’t apparent in staged photos, an open house, or even a simple walkthrough.

Because it is a required legal document in the homebuying process, home buyers can rest assured that the true condition of the home has been disclosed fully. By having this information readily available, home buyers can make the decision to proceed with purchasing the home, negotiate their buying terms, or search for a different home altogether.

How Does a Seller’s Disclosure Impact Me?

A seller’s disclosure impacts your buying journey tremendously. In combination with an inspection, it will tell you the full story of the condition of the home. This will help you anticipate or even prevent unexpected home repair issues down the line.

Keep in mind, it does not replace or omit the need to have the home professionally inspected. A seller’s disclosure highlights and documents all of the defects of the home that the seller is aware of, but there may be other issues that are uncovered by an inspection. The defects that are uncovered by the inspector may not even be issues that the seller has known.

Think of the seller’s disclosure as the first glance of the home’s defects, with the added safety of its legal obligation. On the other hand, an inspection shines a light on any defects or issues with the home underneath the surface.

What Should I Look for in a Seller’s Disclosure?

When reviewing a seller’s disclosure, it’s essential that the information provided covers what is required by the state in which the home is located.

Keep in mind that the requirements of what a seller must cover in the seller’s disclosure can vary from state to state. If you’re unsure, your professional real estate agent can help you locate and identify the specifics of what is required in a seller’s disclosure where you plan to live.

In addition to the state’s requirements of what must be in a seller’s disclosure, you can expect to learn about things like:

• Prior flooding or other water issues
• Roof defects or damage, including repairs
• Infestations and mitigation efforts applied
• Defects in the foundation

Remember: Your Top Real Estate Agent Can Help

By partnering with a professional, trusted real estate agent in your local area, you’re not only getting hands-on help with finding your dream home, but you’ve also unlocked a wealth of knowledge.

Your real estate agent can help you review the seller’s disclosure, since they are familiar with the legal requirements and other specifications tailored to your local market. This helps reduce the headache of reviewing the seller’s disclosure yourself, as well as providing the benefit of having an expert set of eyes to review the document.

RealEstateAgents.com can help you quickly find and connect with top agents in your local area to make the buying process even easier. Get in touch today!