Property disclosure statements essentially outline any flaws that the home sellers (and their real estate agents) are aware of that could negatively affect the home’s value. These statements are required by law in most areas of the country so buyers can know a property’s good and bad points before they close the deal.
Sellers are required to complete a variety of disclosure documents, which are often in the form of a government-issued checklist where they mark whether their home has (or once had) a variety of problems such as the following:
- Windows that don’t close or doors that stick
- Faulty foundation or leaky roof
- Problems with appliances or home systems like the HVAC
- Repairs made on any of the above as well as insurance claims
- Renovations completed without a permit
- Pest or mold infestations
- Environmental hazards in the area (e.g., floods and wildfires)
If you spot something on a disclosure statement that you don’t understand or that raises concerns, have your real estate agent bring it up with the sellers (or their listing agent). In some cases, they might have an explanation that puts you at ease (i.e., “we had bedbugs back in 2012 but hired an exterminator and have been free and clear ever since”). Or, if the issue makes you seriously question whether you want to move forward, this could be an opportunity to renegotiate the sales price to compensate for the added risk you’re taking on buying this home. Per Realtor.com 6/2017