Plenty of attention focuses on buyers and how they navigate the market. But getting to closing day has its own challenges for sellers. One reason why Homesale Realty is so successful is we see the process from both sides.

One big point of confusion for sellers is disclosure.

Sellers have a duty to disclose "material defects" in a home. But this can be more complex than it seems. Rules for what must be disclosed vary from one state to another. Likewise, it's hard to know what any buyer will consider "material" to decisions about a home.

Many sellers feel anxious about disclosing "too much." Or they might not realize certain things they deal with daily – say, a warped door or a leaky faucet – warrant disclosure. Whatever the case, there is no such thing as over-disclosing. Being thorough can prevent a lawsuit.

So, what should you tell your clients to get them into the right mindset? Here are some things to know.

1. Sellers Should Provide Copies of Home Inspection Reports
   Most buyers won't go forward with a purchase unless there is a recent inspection report on file – and many of them can't, since their lender won't allow it. Don't stop at the most recent inspection, however. Sellers should be prepared to provide reports from every inspection since they moved into the home.
   
   
2. Be Ready to Offer Information About Past Repairs
   Sellers can be intimidated about inspections, feeling they cast a home in a poor light. One way to strengthen the seller's legal position and handle this objection is to show documentation for repairs and maintenance, especially projects that address an earlier inspection report.
   
   
3. Disclose Anything That Might Negatively Affect Value
   While "material defects" are at the center of most disclosures, they're not the only things a state's laws may require you to disclose. Anything from a death that took place in the home to a pending lawsuit to a migration pattern that leads animals into the yard may warrant inclusion.
   
   
4. Discuss Neighborhood Nuisances With Your Client
   States differ on what "neighborhood nuisances" you might be required to disclose. Noises, odors, and smoke from commercial, industrial, or military operations may be covered under mandatory disclosure rules. In many cases, a buyer has been exploring the neighborhood and won't be surprised!
   
   
5. Sellers Are Never Responsible for Disclosing Issues They Don't Know About
   While the main reason to be diligent about disclosures is to avoid legal trouble, courts don't expect sellers to read minds or see the future. If a seller didn't know about a problem – and took reasonable actions to uncover it, such as through a home inspection – they will not be held responsible.
   
   
6. If Your Client Doesn't Know an Answer, Don't Let Them Guess
   Buyers may ask all kinds of questions you never expected. However, even the most basic questions can cause problems if your client accidentally misstates the answer. Sellers should be encouraged to admit what they don't know. In many cases, they can put finding the answer onto the buyer.
   
   
7. Be Cautious About Providing Exact Measurements of the Home
   Believe it or not, there is no universally agreed upon way to measure a house. Even the best estimate of an appraiser is just that, an estimate. Purchase contracts should include a clause noting that all square foot measurements are estimates. If it's a material issue for buyers, they should investigate further.

When it comes to disclosures, honesty is the best policy. Learning to communicate around touchy subjects and reduce confusion is essential to working with sellers. Contact BHHS Homesale Realty today to find out more.