If you’re selling your house on your own, then it makes sense for you to attend the home inspection. It depends on what your buyer requests, the type of repair, and your own skill level. Over the years, I frequently come across risk management inquiries involving whether a seller and his or her listing agent need to disclose prior property inspection reports of the property being listed for sale. Occasionally (and most commonly in a very competitive sellers market), buyers may waive their right to an inspection in order to make their deal more appealing to the seller. Such prior reports are material to the desirability and price paid for a property by a willing buyer. While a bad home inspection report isn’t what any seller is hoping for, the good news about the process is that as a result of the inspection, the buyer knows what they’re getting into and has the chance to ask for repairs or walk away — both actions that protect the seller from future liability. So, they should want to move the deal forward as much as you do. You can always offer to barter with other items, like furniture that wasn’t originally included but the buyer might want, or appliances you weren’t planning on leaving behind. Real Estate Comps: How to Find Comparables for Real Estate. Does the seller have to disclose a scratch on the hardwood that is hidden under the rug? Although the seller made good and paid for the mold removal — a $1,500 cost — the Supplees could have taken them to court for not disclosing the problem before the sale. Buyers choose their own home inspector, and occasionally a seller will feel like the report is incorrect or exaggerated. Bad Home Inspection for Sellers: Common Causes and Reasonable Repairs. We are continuously working to improve the accessibility of our web experience for everyone, and we welcome feedback and accommodation requests. B. Edward McCutchan, Jr. was admitted to the Bar in 1985 and is admitted and qualified to practice in all California courts and the U.S. District Court, Eastern and Northern Districts of California as well as the United States Tax Court. Was there flooding or leakage in the crawlspace or basement. Sellers have the ongoing duty to disclose any defects revealed in those reports. Depending on the results of your inspection, you may want to ask the sellers to make repairs before you close the deal. Finally, even if your state doesn’t require a pest inspection, it’s possible that your individual county does. Buyers shouldn’t expect the house to be flawless. To answer these questions, you have to understand the different between patent and latent defects. Leaky pipes (and resulting water damage), failing water heaters, and sewer system problems are some of the most expensive. For those new to selling real estate, here’s a sample inspection report that will give you a clear idea of what a residential inspection will cover. But, even though you won’t be completing the repairs, you’ll still want to get quotes from a contractor so you don’t offer a credit that’s way too high. The amount and type of credit you offer to the buyer varies based on the level of repairs needed, but you’re in good company —. For example, the seller has not been up into that dusty old attic in 20 years. Purchasing a home warranty for the buyer can be a nice olive branch to offer. The seller’s representative doesn’t have to disclose patent defects to you, as these items can be found during a home inspection or are visible to the potential buyer’s eye. In a buyers market, buyers sometimes have more time, but in a sellers market, they usually have to act quickly. By John Herman Managing Real Estate Broker with Property Up Inc. #471.017853 Email Short URL Share: June 06, 2019 08:39 AM. Remember, if a buyer backs out and you re-list, you’re going to have to disclose whatever was found in the report to future buyers, so the best thing to do is go ahead and complete the repairs and hold on to documentation from your contractor that proves the work was done. You have a few options, and should pick your course of action based on what makes the most sense for you financially and for your local real estate market. The buyer may request a credit (also called a concession), in an amount that’s enough to cover the repairs. Read your policy for a complete description of what is covered and excluded. If you think an inspection might uncover some problems, and you don’t want the hassle of making repairs in order to sell, consider Zillow Offers. This originally came from the court case of Johnson v. Davis, 480 So.2d 625 (Fla. 1985). App. B. Edward McCutchan, Jr. The TAR Seller's Disclosure Notice (TAR 1406) asks the seller to identify and attach copies of previous inspection reports. It’s your legal duty as a seller to disclose this information, even if it means losing profit off of the sale. This blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. buy or renew If you use an agent, you only communicate what you want to the agent. This is common, and experienced sellers may even expect it. Florida case law provides that, with some exceptions, a home seller must disclose any facts or conditions about the property that have a substantial impact on its value or desirability and that others cannot easily see for themselves. As a listing agent, can I shield my seller from having to dis- close information in an inspection report to subsequent buyers by not passing the report along to the seller? Hi Eric, Sellers and Agents do have to disclose any known material defects, and most sellers do give buyers copies of any previous inspection reports. Sellers must give buyers a 10-day period to test for lead paint. In some states, like Arizona, such a disclosure is required of the seller. Whether you’re able to sue the inspector depends on state laws. After all, among sellers who had a sale fall through. His area of practice is also agricultural law (viticulture and wineries), trusts and estates, probate, real estate transactions, business law and elder abuse. And many end up requesting repairs or concessions after getting the inspection report back. After reviewing some basic information about your home, we’ll conduct an in-person evaluation and present you with an offer to buy your house in cash. These sellers must also disclose whether the home has any lead paint. Code, frayed wiring, or if sellers are refusing does seller have to disclose inspection who want to buy your?! 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