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Are There Any Specific Disclosures I Need to Make When Selling a House As-Is?

Selling a house “as-is” can be an attractive option for sellers looking to streamline the process and minimize their responsibilities. However, it’s crucial to understand that even in an as-is sale, certain disclosures may still be required. These disclosures can vary depending on local laws and regulations, but there are some common considerations that sellers should keep in mind. For tips on negotiating the sale of your home in as-is condition, see our blog Mastering Negotiation: Selling Your House in As-Is Condition

Structural and Material Defects

First and foremost, sellers selling their home as-is should disclose any known material defects or issues with the property. This includes problems with the structure, systems (such as plumbing or electrical), and any environmental hazards like mold or lead paint. Failure to disclose known issues could lead to issues at closing when selling your home for cash as-is, so it’s essential to be transparent with potential buyers. Cash buyers will usually buy your house as-is but it is still important to be transparent and that will get you the most cash.

Past Renovations

Additionally, sellers should disclose any past renovations or repairs that may have been done to the property. This can help buyers understand the history of the home and make informed decisions about whether or not to proceed with the purchase. Disclosing renovations can also help build trust with potential buyers and demonstrate that the seller is acting in good faith. Again, cash home buyers will typically buy your house as-is, but the more you can disclose that more cash you will typically get.

Documentation

In some jurisdictions, sellers may also be required to provide a property disclosure statement or form, outlining any known issues with the property. This document typically covers a wide range of topics, including the condition of the roof, HVAC systems, appliances, and more. It’s important for sellers to fill out this form accurately and thoroughly to avoid any misunderstandings or disputes during the sales process.

Most states have standard disclosure forms put out by the state’s Board of Realtors. You don’t have to use that document, you can use your own. Disclosures aren’t required by law but are generally a good idea. If you are selling your home as-is, you can just say that you are not doing disclosures. But the more information you can give to a home buyer, especially a cash home buyer, the better your offer will be. Here is a link to the Georgia Board of Realtors Property Disclosure document https://www.thehousinggroup.net/pdf/Property_Disclosure_Blank.pdf. If you are a realtor in the State of Georgia, here is a version you can change https://forms.garealtor.com/Downloads.aspx.

Are There Any Specific Disclosures I Need to Make When Selling a House As-Is?

Title, Liens, and Encumbrances

If there are any liens against the property that aren’t disclosed, that could cause problems at closing. Liens can loans such as your mortgage or second mortgage. They can be tax liens, such as IRS or State of Georgia liens. They can be mechanics liens or HOA liens that are owed against the house. If you’ve ever been sent to collections by a credit card company or a medical facility, they can file a FIFA against you and that would have to be paid out of the proceeds from the sale of your house.

When selling a house as-is, it’s crucial to manage buyer expectations effectively. While the property is being sold in its current condition, buyers still have the right to inspect the home and uncover any potential issues. Sellers should be prepared for this and understand that buyers may negotiate based on the results of the inspection.

Seek Guidance from a Professional if You Don’t Mind Paying the Commission or Fee

Finally, sellers should seek guidance from a real estate professional or legal expert familiar with local regulations. They can provide invaluable advice on what disclosures are required and help ensure that the sales process proceeds smoothly and ethically. Ultimately, being transparent and proactive about disclosures can help sellers avoid legal trouble and facilitate a successful sale, even in an as-is transaction. If you’d like more information about how much you’ll make on the sale of your house, see our blog How Much Money Can I Make Selling My Home?

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