Have you bought or sold a home recently? You probably remember the numerous amounts of signatures that were required by the sellers, agents, buyers + lenders. Oh wait! You don’t remember? Well, you’re not alone. Whether purchasing or selling for the first time or tenth this is information that you should try to move up the importance ladder. As with most Real Vocabulary blogs I’m here to go over some of the details that you should or should’ve paid some attention to, and why while purchasing a home.
So… what is a Real estate disclosure anyway? I always love to break down the vocabulary word myself and find a good resource to back me up. As much as it pains me to say it, Zillow had a pretty good description. This does not mean that I find them credible with all aspects of Real Estate: i.e. property valuations. So lets get through this quickly shall we?
“Real estate disclosure statements, which can come in a variety of forms, are the buyer’s opportunity to learn as much as they can about the property and the seller’s experience in it. Potential seller disclosures range from knowledge of leaky windows to work done without the benefit of a permit, to information about a major construction or development project nearby. Not only do disclosure documents serve to inform buyers, but they can also protect the sellers from future legal action. It is the seller’s chance to reveal anything that can negatively affect the value, usefulness or enjoyment of the property.”
Now, on to my breakdown:
SELLERS: When someone asks you to disclose pertinent information about your home how does that make you feel? Probably a tad uncomfortable as we all know that maintaining a home is a TON of work and its hard to keep track or remember what you had for dinner last night let alone the last time you changed the furnace filter or cleaned the chimney flue. But that doesn’t change the fact that the buyers deserve to know how well you’ve taken care of the property so that they can purchase with ease… so remember when you are filling out the Sellers Property Disclosure that you are as honest as possible! This will lead to a smoother transaction. The form is super simple and as of 2018 just asks you to mark if there are issues or information that can be provided about each area of your home. If you would like to see what this form looks like so that you can be as prepared as possible please feel free to reach out and I will shoot one over to you. Remember: honesty is the best policy.
BUYERS: When purchasing a home you get the opportunity after (sometimes before) the offer is accepted to review what the sellers have done for maintenance and repairs during their ownership. If there is something suspicious you get the opportunity to investigate further by hiring an inspector, industry experts, or asking the seller for more information regarding their comments. This is the buyers opportunity to do as much due diligence as possible! There are deadlines in the contract to purchase real estate that state how long you have to review and question the information that is disclosed. Buyers should not hesitate to hire experts in fields such as roofs, sewers, water damage, mold, foundation etc to look into any matters that they feel unsure about. Please keep in mind that the responsibility of the cost of hiring experts is on the buyer unless otherwise negotiated by all parties. Remeber: Protect your future investment, its a big one.
For more information on Colorados rules and regulations regarding disclosures related to your real estate purchase I’m here to help. Email me at firstname.lastname@example.org
See you all next week for another edition of REAL Vocabulary!