Does Home Disclosure Have to Include Previous Repairs?

previous home repair

By: Jeanne Sager

Home repairs are part and parcel of home ownership, but when it comes time to sell, does a home disclosure have to include those repairs?

It can be a conundrum. Buyers want (and deserve to have) a full picture of the house they’re buying and the condition it is in. However, disclosing a previous home repair may actually turn off a potential buyer. A foundation that’s had repairs for leaks several times over in recent years, for example, may signal to the buyer that they could have a major water problem on their hands. Both legal and ethical considerations come into play when you’re debating whether or not to ‘fess up to a previous repair. So let’s dig in!

What do you have to disclose to the seller?

Federal seller disclosure laws require sellers to be open and honest about the existence of lead-based paint in a home, but most laws regarding what a seller must share with a buyer are made at the state level. That means your state may or may not require that you disclose a previous repair, says Kathryn Bishop, a Realtor® with Keller Williams in Studio City, CA. To find out the laws in your state, do a search online for “[your state] seller disclosure laws.”

Does home disclosure include a previous repair?

In Bishop’s home state of California, law dictates that every significant repair made since purchasing a property needs to be disclosed. Your real estate agent will be able to advise you on what regulations must be followed in your state, so it’s best to disclose a previous repair to them at your first meeting about the sale. And note there are some exceptions to the law. You don’t have to share every single fix made in all the years you’ve lived in a house—just the big ones.

“I don’t mean when you’ve changed a faucet washer,” Bishop clarifies. “I mean when you had to repair a plumbing break.”

Nor do you technically have to disclose work done by the previous owner, even if they disclosed it to you. That said, many experts advise that sellers share that information too.

Because they might very well find out on their own, anyway. During the home inspection phase, buyers may request a copy of your Comprehensive Loss Underwriting Exchange (CLUE) report—a free report that details every claim made to your homeowner’s insurance in the past seven years. And even if you paid for a repair without the help of insurance, an eagle-eyed home inspector may note fresh paint on a ceiling repaired after a plumbing leak or start asking why the hot water heater, furnace, and other basement appliances seem to be brand new. Failing to disclose any of these things could put you in serious legal trouble.

The ethical side of seller disclosure

Even when disclosure isn’t required by law, or a project was done by a previous owner, Bishop still discusses disclosure with her clients. After all, you don’t want the seller caught by surprise with an issue that preceded your homeownership.

“If the previous owner disclosed in writing that they had a serious case of mold and it’s been cleaned up, I will advise my client who is now selling to pull out those old papers and disclose,” she says. “We know that what typically happens is the new buyer moves in, and the next-door neighbor asks if the mold has been cleaned up!”

The ways seller disclosure helps you

If following the law and being ethical aren’t reasons enough to disclose a previous repair, there’s are other benefits to doing so, says Michele Lerner, author of “Homebuying: Tough Times, First Time, Any Time.” Among them:

  • Buyers might prefer negotiating with sellers who have proven they are upfront with information about their home, as opposed to those who are just spinning everything to attract buyers.
  • Buyers want to know that sellers have maintained their property appropriately, so providing an example of your diligence in repairing your bathroom and fixing your ceiling can have a positive impact.
  • Your disclosure can protect you from future disputes with the buyers.
  • Buyers may feel relieved that you have already made necessary repairs, since that becomes one project they don’t have to handle in the immediate future.

 

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Home-Selling Checklist: 12 Things to Do Before Selling Your House

12 things to do before selling your home

By: Cathie Ericson

Getting ready to sell your house? Then it’s time to roll up your sleeves and get to work! Selling a home, after all, entails a whole lot more than just planting a “For Sale” sign on your front lawn or uploading a few random photos of your place—especially if you’re angling for the most cash. (And, honestly, who isn’t?)

So before you put your house on the market, peruse this checklist of things you must do in preparation. Some of these tips are surprisingly easy, while others might require a bit more elbow grease. But they’re bound to pay off once buyers start oohing and ahhing over your place—and hopefully ponying up a great offer.

1. Find a great real estate agent

Think you can sell your home yourself, and pocket the cash you would otherwise pay an agent? It can be tempting, especially in a hot market, but resist the urge, says Jon Sterling, a real estate consultant with Keller Williams Realty in San Francisco. He’s found that a “For Sale by Owner” transaction is almost always a disaster, leading you to sacrifice both money and time.

That said, don’t just blindly hire the agent who most recently sent you a flier or the one your uncle’s friend’s co-worker’s cousin used. Do some research to find a real estate agent (or ideally a few) who is knowledgeable about your specific market, and then interview her to make sure she’s a good fit.

2. Consider your curb appeal

Make sure the first thing prospective buyers see of your home entices them to want to see more. Yes, for better or worse, buyers do tend to judge a book by its cover. By investing some effort in relatively easy fixes like planting colorful flowers and repainting your front door, the outside of your house can beckon them to come on in.

3. Declutter living areas

Less is definitely more when it comes to getting your house ready to show, notes Boris Sharapan Fabrikant, a real estate broker with Triplemint.

Do a clean sweep of counters, windowsills, tables, and all other visible areas, and then tackle behind closed doors: closets, drawers, and cupboards—since virtually nothing is off-limits for curious buyers. And if the house is overflowing with stuff, they might worry that the house won’t have ample space for their own belongings.

Take the excess and donate or pack it up for a storage space. The bonus to taking care of this now is that it’s one less chore you’ll have to do when it’s actually time to move.

4. Depersonalize your space

The next step on your declutter list? You want to remove any distractions so the buyers can visualize themselves and their family living in the property, says Kipton Cronkite, a real estate agent with Douglas Elliman in New York.

He says that includes personal items and family photos, as well as bold artwork and furniture that might make your home less appealing to the general public. The goal is to create a blank canvas on which house hunters can project their own visions of living there, and loving it.

5. Repaint walls to neutral tones

You might love that orange accent wall, but if it’s your potential buyer’s least favorite color, that could be a turnoff, warns Sharapan Fabrikant.

“You’re pretty safe with a neutral color because it’s rare that someone hates it, but the other benefit is that a light color allows [buyers] to envision what the walls would look like with the color of their choice,” he points out.

6. Touch up any scuff marks

Even if you’re not doing a full-on repainting project, pay special attention to scrubbing and then touching up baseboards, walls, and doors to make the house sparkle and look cared-for.

7. Fix any loose handles

A small thing, sure, but you’d be surprised by the negative effect a loose handle or missing lightbulb can have on a buyer, notes Sharapan Fabrikant. “It can make them stop and think, ‘What else is broken here?’”

8. Add some plants

Green is good, because plants create a more welcoming environment. You might also want to consider a bouquet of flowers or bowl of fruit on the kitchen counter or dining table.

9. Conduct a smell test

Foul odors, even slight ones, can be a deal breaker, and the problem is that you might not even notice them, says Sharapan Fabrikant. He recommends inviting an unbiased third party in to try to detect any pet smells or lingering odors from your kitchen.

If the smells are pervasive, you might need to do some deep cleaning, because many buyers are on to your “masking techniques” such as candles or plug-in room deodorizers.

10. Clean, clean, clean

And then clean some more. You want your property to look spotless. Take special care with the bathroom, making sure the tile, counters, shower, and floors shine.

11. Hide valuables

From art to jewelry, make sure that your treasures are out of sight, either locked up or stored offsite, recommends Kronkite.

12. Consider staging

Does your house scream 1985? Nothing invigorates a house like some new furnishings or even just a perfectly chosen mirror. The key is getting your home staged by a professional. Home stagers will evaluate the current condition and belongings in your house and determine what elements might raise the bar. They might recommend you buy or rent some items, or they might just reorganize your knickknacks and bookshelves in a whole new (that is, better) way.

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How to Pet-Proof Your Home So It Doesn’t Look Like It’s Gone to the Dogs

dog

By: Brittney Gilbert

A pet makes a wonderful addition to any household. Cats and dogs mean furry snuggles and tons of comic relief; they can also teach us all a few things about unconditional love. Unfortunately, they also bring with them some less desirable traits: sloppy table manners, a propensity to break things, and truckloads of animal hair.

It’s true, pets can be messy. In fact, your beloved animals can actually ding the value of your property if you’re trying to sell by adding scratches to your doors and floors, funky, semipermanent smells, and other flaws that prospective buyers might just catch. However, there are precautions you can take to pet-proof your home so that their negative impact is greatly reduced.

Follow these tips to do dog-and-cat damage control.

Create a separate eating area for them

When Judy Morgan, a veterinarian in Woolwich, NJ, remodeled her kitchen, she took the opportunity to turn a room in her basement into a kitchen that caters specifically to her nine dogs and four cats. The vet took her old cabinets, a small refrigerator, a microwave, and even a Keurig machine downstairs to create an eating space just for the animals.

“They eat down there so they won’t scratch the new kitchen cabinets when they are excited and jumping up to see their food being prepared,” says Morgan. “We keep their food in the downstairs refrigerator and warm it in their own microwave. The Keurig is for making hot water to rehydrate or warm meals.”

Get smart about flooring

Not everyone has room to create a second kitchen for their cats and dogs, so Morgan also recommends bamboo flooring in common areas.

“Bamboo is much harder than most woods so it doesn’t scratch easily,” she says. “It also has no grooves between boards like other hardwood floors. Grooves are a real pain when there is a urine or poo accident.”

Tile is another good option, says Morgan, who used that material in her sunroom because it’s easy to clean. She also recommends recycled tire rubber flooring as a great basement floor covering for people with kids and pets.

“Phenomenal product, comes in large rolls, used in a lot of gyms,” Morgan says of rubber flooring. “Comes in an amazing array of colors and thicknesses.”

As you might have guessed, carpet is not a terrific choice. “We have no carpet, other than on the stairs,” notes Morgan. “Carpet holds hair and odors and is an allergy disaster for people with allergies.”

Decorate your windows wisely

Pet owners should also pay special attention to windows in their home.

“Curtains, for their own sake, should not drag the ground”, says Michelle Newfield, a veterinarian in Slidell, LA. “Exploring kittens love to climb them.”

Newfield suggests thick blinds for window coverings (think wood or even faux wood, material meant to stand the test of claws). “And be sure to secure the cords out of reach,” Newfield says.

Set up some barriers

If you have a beloved vase or rug that you fear could be ruined by your pet, the answer may be as simple as setting up a barrier to keep curious creatures out.

“Most animals explore their environment with their noses and mouths,” explains Patrick Mahaney, a vet based out of Los Angeles. “It’s common for indoor and outdoor items to be sniffed, licked, or chewed upon, so it’s crucial to use physical barriers. Baby gates, doors, screens, and other barriers can do the trick.”

Or, if it’s all but impossible to keep your pets off your gorgeous new couch, try a different type of barrier by covering it in a large throw blanket. That way, they can lounge and shed with abandon; then, when company comes, you can lift it off and see a clean couch!

Keep pet paraphernalia out of sight

There’s nothing like a gnawed-on ham bone in the center of your living room floor to ruin the ambiance. So get a cute basket in which you can stash pet toys and set it off to the side and out of sight. You can also give pets a place to call their own that doesn’t detract from your design. Place a cozy crate or dog bed in a kitchen nook, under a table, or in a corner. We’re not saying pets should neither be seen nor heard, but, well, sometimes that would be nice, wouldn’t it?

 

 

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How to Find the Right Financing Option for Your Home Renovation

home improvement

By: Home Advisor

There are several ways to pay for your home improvement project. Which one is right for you? That depends on a range of factors, including project cost, your household budget, how much you’ve saved, and how soon you plan to start work. This checklist of pros and cons can help you choose the financing option that best fits your budget and your project.

Option No. 1: Pay cash

Pros:
If you’ve saved money to pay for the project, or received a big tax refund or work bonus, paying cash may be a good option. You won’t take on any more debt and you’ll have immediate access to the money, unless it’s tied up in a certificate of deposit or an investment account.

Cons:
Unless you’re a super saver, it could take years to save enough to pay for a large project like a kitchen overhaul, which can cost $50,000 or more.

Option No. 2: Pay with your credit card

Pros:
If you have a low-interest credit card or a 0% balance-transfer option, you can also consider paying with a credit card. You won’t have to go through a lengthy approval process, especially if you’ve already been approved for the card.

Cons:
Many contractors won’t accept credit card payments. While you can get a cash advance through your credit card, the interest rates are often very high. If you’re using a card with a limited-time, low introductory interest rate and don’t pay off the full balance before the offer ends, you’ll face much higher monthly payments and end up paying a lot of interest on the remaining balance. In addition, the length of introductory offers is usually only a year or a year and a half, which gives you a very tight time frame for paying off the debt.

Option No. 3: Get an unsecured personal loan

Pros:
In contrast to credit cards, an unsecured loan—also known as a personal loan—can have a fixed interest rate and a fixed monthly payment. This type of loan does not require you to put up your house as collateral, so your home is not at risk. And, you can still qualify if you haven’t built enough equity. The application requires minimal documentation, so the process takes just a few minutes. And, you’ll receive your money in a few days. In addition, there are no closing costs and you usually have several years to pay back the loan.

Cons:
Interest rates for unsecured loans can be higher than those for home equity or other secured loans, which means you pay more interest over the life of the loan. You cannot deduct loan interest from your taxes.

Option No. 4: Take out a home equity loan

Pros:
If you have equity in your home, a home equity loan or line of credit can help you pay for a more expensive project. These loans usually have lower interest rates, and you may be able to deduct the interest and any points on your income taxes as well. In addition, you may have longer to pay back the loan—anywhere from five to 30 years.

Cons:
This type of loan is also called a secured loan. That means your house is collateral for the loan and, if you don’t pay it back, the lender can take your home. It can take six to eight weeks to complete the application process and receive your money. Though the interest rate may be lower, the fees can add up. You’ll pay closing costs—including the cost of an appraisal, attorney’s fees, title search charges, and more—which can add up to several thousand dollars. The amount you can borrow will also be limited to a percentage of your home’s value minus any current mortgage.

Before you decide how to pay for your home improvement project, think about which option best suits your budget, the amount you need to borrow, and how soon you’ll need the money. Doing so will help to ensure that you get the loan that’s right for you.

This article is intended to provide generalized information to assist the general public in making financial decisions; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

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 This story was originally provided to HomeAdvisor by Lending Club.

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