Home sellers are not entitled to alternative “facts” and must do the right thing: disclose, disclose, disclose!
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The personal stories of one realtor’s battles and triumphs in the highly-competitive Bay Area real estate market, seeking to illuminate and humanize the very real ups-and-downs of homeownership.
In a world where our duly-elected leaders default to “fake news” whenever the facts don’t align with their particular rendition of events, the concept of an agreed-upon set of truths seems to have left the room. (“Alternative facts” being the phrase Kellyanne Conway famously coined during her tenure as Trump’s spokesperson.)
Per Merriam-Webster’s dictionary: “A fact is something that actually exists, happens, or can be proven true by direct observation, experience, or verifiable evidence.”
In other words, “alternative facts” aren’t facts; they’re fabrications.
I’m reminded how important “facts” are whenever I read through Seller disclosures. Disclosures are the documents that spell out whether the ADU is legal, if the home improvements were permitted, if water has ever seeped into the structure, how old the roof is, if active knob & tube remain, and if there’s been a death on the premises in the past three years . . . among many other outstanding questions. FULL DISCLOSURE is critically important in a market where Buyers routinely write “non-contingent,” offers, foregoing their due diligence. (BTW – Buyer waivers don’t stop these same Buyers from suing if new discovery is found AFTER the close of escrow.)
Here’s where things can get muddy.
Memory is a fungible characteristic that’s prone to manipulation and reinvention, and some Sellers tend to cushion, or worse yet, cover up past imperfections regarding their homes, believing they shouldn’t point out ANY problems. (The truth almost always comes out.) Moreover, the longer people have lived in a home, the less inclined they are to track it, having become accustomed to leaking pipes or swollen doors as part and parcel of their daily lives. (That’s what hips are for.)
While it’s easy to understand why Sellers prefer to gloss over certain less complimentary aspects of their properties — especially if they’ve learned to live with, or no longer notice, rotting decks, settlement in the floors, or leaning fences — once Sarah and I explain that the disclosures, as well as the inspections, are designed to be a layer of protection for the Sellers, the real story often emerges . . . .
“Do I need to mention that we had rodents in the attic several years ago?” (Yes, you do.)
“What about the flood caused by the upstairs toilet? (Certainly.)
“Should we mention our neighbor’s garage band? (Absolutely.)
Do the right thing
Such off-handed comments are why we prefer to sit down with our Sellers to review their disclosures in minute detail. Not only does it help Sellers to clarify fuzzy memories, it better informs their Realtors® about the property’s attributes and challenges. While no one expects perfect recall when it comes to disclosures, people are entitled to honesty. (Unfortunately, honesty also seems to be a fungible concept.)
AND because your average Seller or Buyer ISN’T an inspector, engineer, or architect (unless their profession IS inspector, engineer or architect), it’s important to understand that Seller Disclosures don’t take the place of a home, pest, roof, or structural inspection (where we assume the inspectors have expert knowledge that can be relied upon), but do provide knowledge that only the Sellers might be privy to. (“These windows, when opened with that door, can create a wind tunnel in the home. . . “) Fair enough.
Together, Seller Disclosures, along with the requisite inspections, are meant to inform the buying public about such peccadillos, as well as any “material facts” that may or may not meet the eye. (“Material facts” can be anything that once discovered, might change the opinion of the prospective Buyers.) As such, it’s in a Seller’s best interest to disclose EVERYTHING they know to be true about a property and neighborhood, if only to shield them from accusations and lawsuits after the fact.
But here’s the good news: disclosures are limited to what the Homeowners actually know. If you don’t know, or aren’t aware of certain aspects about the property, you’re not expected to “guess.” However, if water showed up in the crawl space five years ago during an “atmospheric river,” you need to plainly make it known. If there was a fire in the attic, persistent drips to the windows, backed up sewer lines, or a leak in the roof, accurately disclose when and where. Even better, if you took steps to address any such defects, this is your opportunity to spell out the subsequent repairs, and how these issue perform now.
Avoid the desire to embellish your answers by using words such as:
“All”
“Every”
“Never”
“Entirely”
“Totally”
Leave these definitive adjectives to the stylized speech of valley girls, unless you’ve “totally replaced every window in the house, dude.” Then you have my permission to say so.
Finally, please check the “yes” box regarding your home’s ongoing maintenance. ALL homes require ongoing maintenance, including annual gutter cleaning, sprinkler adjustments, and tree trimming, just to name a few. Home chores are why weekends were created (although my husband would beg to differ).
In short, selling your home isn’t meant to be a top-secret affair; it’s more often than not a public event, so disclose, Disclose, DISCLOSE, (before your neighbors fill in the blanks — and make no mistake, they will). Remember that disclosures, for better or worse, are your opportunity to tell the WHOLE story of your home, and believe me, that’s a story worth telling.
Just keep it real.
How can we help you?
Julie Gardner & Sarah Abel | Compass Realty
Not just Realtors, but consultants in all things house and home, we’re here to educate, explore, examine and refer . . . In short, you may count on us to take care of your home as if it were our own and anyone who knows us, knows we take pretty darn good care of our homes.
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