Whether you're buying or selling a home, it pays to be upfront, with yourself or with potential buyers.
You've fallen in love with a house and you really want it.
We're happy for you and we wish you much happiness in your future dream home... as long as you are aware that the neighbour's house sold for $100,000 less just two months ago, and that no one else wanted to buy the house because of the knob and tube wiring that no insurance company will insure.
Buying a home is a deeply emotional and personal decision, and this element of the process should not be overlooked. However, it is also an enormous financial decision, and taking it on blindly because you really, really love the high ceilings and large windows can have serious consequences in the future, and leave your dream home feeling like more of a burden than anything else.
On the flip side, failing to disclose problems with your property to potential buyers, even if they may discourage them from buying it, can create much bigger problems in the long run as well.
It's very important to be honest with yourself, and with potential buyers, when buying or selling real estate. here are a few reasons why.
Once the excitement wears off, you have to live in this house, every day.
You may be willing to disregard a small leak in the basement in light of that stunning stone fireplace and beautiful hardwood floors in the rush of finding your dream home. But this leak will not go away, and so it's important to seriously consider how big a problem this may potentially become down the road.
Will the basement constantly smell damp? Will the leak wind up costing you thousands of dollars to fix? It may be hard, but force yourself to consider these things before you buy.
Buyers may be less willing to negotiate with you if they feel you've been dishonest.
While you may feel uncomfortable disclosing details to a potential buyer that may deter them from buying your home, it's better they find out from you than from the home inspector. If a buyer learns about problems with the home from the inspector that they believe you were likely to know about, but didn't mention, this will erode their trust in you, and make them less likely to want to negotiate.
You could face a lawsuit.
If the buyers of your property discover a problem after the sale of the home is complete, and they think it's likely you were aware of it, they may sue. lawsuits are expensive and you may wind up paying more in the long run than the amount you would have had to knock off the price your property sold for, had you just been forthright from the beginning.