The best way to ensure no repercussions of liability from lack of disclosure is to just sing like a canary. There is no such thing as “too much information” when it comes to transparency with your buyer. They have the right to know everything about the home they are buying, and it is morally and ethically your responsibility to tell all. However, just because you’ve disclosed a problem doesn’t mean the problem is yours. The buyer may negotiate potential costs of renovations into the deal. For example, if the cost to get the pipes fixed is appraised at $5,000, subtract the amount from the sales price. The buyer can use the savings to get the work done themselves. Some eager buyers even look the other way on a minor issue that will not affect their quality of living, in order to get a deal done as soon as possible. You and the prospective buyer will have a healthier and more productive negotiation when all the cards are laid out on the table. Once you’ve figured all that must be disclosed to your prospective homebuyer, you need to figure out the right way to divulge the information. There are specific forms in many states that use prompting questions and fill-ins so that it’s easy to complete and understand the reports of problems with your home. HOW TO DISCLOSE
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