When selling a property, the seller needs to complete a property disclosure. This applies to most real estate transfers with a few exceptions. A few examples of these exceptions include:
When filling out a property disclosure, here are a few main items to include.
Items To Consider
The buyer will want to know the flood zone of the land. The types of flood zones vary but are either preferred or non-preferred. Property on land located in a non-preferred flood zone may have a high flood insurance premium. This can impact the value of a house because it is an extra monthly expense.
Besides flood zone, you'll need to disclose if the structure has ever flooded. It is best to have a flood elevation certificate to provide to the home buyer. Look up the flood zone for your property if you don't already know it.
Termites and other wood destroying insects can create major damage to a structure. If there has been previous termite damage, it should have been repaired. It is best to have the property covered under a termite contract. This contract will include an upfront chemical treatment or bait station install along with a yearly renewal. Make sure to list the name of the company providing the termite contract and the date of contract expiration as this will transfer to the new owner. Keep in mind that a termite contract is not necessarily a termite warranty.
You will need to indicate if there are any defects with the structure. The roof and the foundation are two items that take abuse and are expensive to repair or replace. You should show the age of the roof so that the buyer will know how much life is remaining. The remaining life may be shortened if the roof was not installed correctly or if the attic does not have proper ventilation.
Plumbing, Water, Gas, and Sewer
Water supply is typically provided by the city or by a private water well. The sewer service can be supplied by the city or with an on-site sewer treatment system. The property disclosure should include this information. If there is a water well, you'll need to indicate the date of the last water test and the results. If you need to sell a house with a private sewer system, you'll need to provide a sewer treatment system disclosure.
Electrical, Heating And Cooling, Appliances
This section will ask about defects in these various components. Any issues will normally be found during a home inspection so it's best to include them in the property disclosure to avoid any surprises.
The last part relates to various items such as zoning, HOA dues, liens, taxes, and hazardous materials or conditions. Again, these will most likely be discovered at some point so it's best to be upfront about them to demonstrate to a buyer that you are trustworthy and have fixed all known issues with the property.
At Fairview Home Buyers, we can provide you with cash offer to buy your house. We buy houses for cash throughout the New Orleans area. Worst case scenario, we'll give you some free advice on how to fill out a property disclosure and sell your house fast.