Home sellers may already know that it's wrong to lie about a leaky roof or problems with the electrical system, but other potential lies are less obvious. So read on for some of the most common half-truths and lies real estate professionals tell, and make sure you don't inadvertently tell any whoppers.
While it may be tempting to exaggerate the square footage of your home - to cover up a years-old mould infestation - doing so can jeopardize your chances of selling.
Federal law requires sellers to disclose certain information. For example, if you are selling a home that was built before 1978, you must inform buyers that the home may contain lead paint. Many states also have specific disclosure laws.
In general, however, a typical seller's disclosure will include information such as the condition of the roof, any history of flooding or serious leaks, foundation defects, pests, plumbing problems, or boundary disputes.
Therefore, when describing your home to prospective buyers, the following are absolute must not be said or written.
1. all appliances work properly.
Even the smallest details matter in the sale of a home.
Jimmy Hughes, an agent with JMR Realty in Oklahoma City, says, "I had a deal almost fall through because of a microwave." I was representing the buyer and the seller. The seller accidentally checked the wrong box on the disclosure form that said the microwave was in working order.
That was not the case.
Hughes said all parties were eventually able to resolve the matter, but it caused "considerable controversy."
So whether your cooker burns out or your ice maker breaks down, be sure to truthfully tell buyers whether your appliances are healthy.
2. Lots of wardrobe space
Is your wardrobe really a walk-in? If not, don't paint a rosier picture of this seemingly small part of your home than it really is.
Ben Kuhl, CEO of Shelf Expression in Charlotte, N.C., says, "False advertising, even of small details like wardrobe size, can hurt you." If a homeowner says they have a large walk-in wardrobe when in reality they only have a modest wardrobe, it can be disappointing. It will make potential homebuyers question other details of the property.
A walk-in wardrobe must allow someone to actually walk into the wardrobe (as the name implies) and have enough room to comfortably navigate the hangers and shelves.
3. This neighbourhood is so peaceful
As much as you'd like to hide unpleasant details about the quality of life in your home, you need to be upfront about any altercations with neighbours or any major sources of noise.
Alex Cappozzolo, co-founder of Brotherly Love Real Estate in Philadelphia, says, "I've met a lot of people who tend to hide what's really going on with their neighbours." About 45 percent of homeowners won't disclose the fact that they've had problems."
While neighbour disputes don't seem to matter, they do. Cappozzolo says sellers have a legal obligation to disclose this fact.
It may just be something minor, like a noise complaint, but the buyer has a right to know, Cappozzolo adds.
4. All renovations are up
What's a surprisingly common lie? Sellers exaggerate the facts when it comes to renovations.
Cam Dowski, founder of We Buy Homes Chicago, says, "Most communities insist on getting a permit before remodelling a home." Unfortunately, many homeowners don't follow the department's rules and end up lying in order to sell their homes.
However, if it is discovered during a home inspection that you have done unpermitted work, this can lead to major problems and potentially derail the deal.
Dowski says, "In my experience, revelations like this can make potential buyers nervous about purchasing a property because they don't know what else the seller may have lied about." Buyers also don't want to get involved in unnecessary paperwork or possible litigation that could result.
5. what mould problem?
If your home has been infested with mould or pests, even if you've eliminated them, it's important that you tell the truth.
"Mould and pests are serious health risks," says Shaun Martin, owner and CEO of We Buy Houses Denver. Therefore, if you are aware of any current or previous infestations, they need to be addressed and disclosed before putting your home on the market.
6. our homes have only happy memories
If a seller's home has experienced a natural disaster or has been the scene of a heinous crime, it's important that he shares those hard facts with buyers.
You can't tamper with or omit a property's history," says Mike Qiu, owner of Good as Sold Home Buyers in Kirkland, Washington. Previous fire damage, natural disasters or crimes that occurred on the property must be shared. Hiding information can make a property look more attractive, but it can potentially put buyers in an unwanted situation."
So save the tall tales for the next bonfire. If you fudge, exaggerate or lie in your disclosure statement, buyers may walk away or file a lawsuit against you for fraud.