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Whether or not you’re better off removing your home’s potential hazards before putting it up for sale will depend on a number of different factors. But the following steps can help ensure your deal goes smoothly:
Hire a real estate lawyer
A real estate lawyer can tell you the exact information you are legally required to disclose to potential buyers. This varies from state to state, but usually includes whether a home is prone to natural hazards such as flooding, fire and/or earthquakes or has structural defects. If your home was built before 1978 (the year lead-based paint was outlawed for U.S. residents), you have to acknowledge the possible presence of this paint and allow potential buyers 10 days to conduct an inspection or risk-assessment, along with giving them the pamphlet Protect Your Family From Lead in Your Home. Some states also require homeowners to disclose the presence of toxic mold.
Along with explaining your legal obligations, a lawyer can protect you by inserting clauses into a deal that specify the maximum you will be required to spend to treat or repair damage caused by such things as termites, foundation problems or other specific concerns. And it can be made to stipulate that you won’t have to repair, fix or reduce the purchase price if a buyer discovers the presence of lead-based paint.
Consult a real estate agent
A real estate agent can help you price your home realistically and give you advice on what they recommend you fix in order to get the best price. If the market is hot, you may not need to do anything about your home’s hazards other than disclose them. Potential buyers may be willing to undertake the necessary repairs themselves. Sometimes a home that’s listed at a lower price because it needs a little work will sell faster than a home that has been upgraded.
Consider having your home inspected before you list
Most home buyers are going to want to conduct a home inspection. By beating them to it, you can stave off their concerns with professional documentation that lays out your home’s exact problems. A home inspection will also indicate any problems that you may not be aware of and give you the chance to decide whether or not you want to fix them before you put your home on the market. Of course, there is the argument that if you decide not to have your home inspected you won’t have to disclose problems you don’t know about. The onus will then be on the buyer to find out about any potential hazards.
Fix what you can
If potential buyers inspect your home and discover hazards, there’s a good chance their offer is going to require you to get rid of them. In addition to the conditions you are required to disclose, buyers may also want to inspect for termites or other vermin, radon, hazardous insulation or other environmental, health or structural hazards. So it makes sense to do the following yourself, if possible, before you put your place on the market:
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