For Sale By Owner How 2
Your COMPLETE GUIDE to Planning to Sell Your Own Home!
HOMEANSWERS TO QUESTIONS ABOUT ELIZABETHPRIVACY DISCLAIMERSITE MAP
UNDERSTANDING THE PROCESS OF SELLING A HOUSE
STEP BY STEP FSBO OUTLINE
PREPARE YOURSELF FOR THE JOB OF SELLING THE HOUSE
GATHERING INFORMATION NEEDED TO SELL HOUSE
PROPERTY INFORMATION SHEET
HOW TO PUT TOGETHER YOUR TEAM
REALTOR OR REAL ESTATE AGENT
REALTOR DESIGNATIONS
MLS MULTIPLE LISTING SERVICE
HOW SET THE RIGHT PRICE
COMPARABLE MARKET ANALYSIS CMA PROCESS
CMA BLANK FORM
FIND YOUR EQUITY - SELLERS NET SHEET
PREPARE THE HOUSE FOR SALE FROM TOP TO BOTTOM
WHERE TO FIND MORE ABOUT MAKING REPAIRS
40 SPRUCE UP TIPS
ANYTIME SPRING CLEANING
SPRING CLEANING CHECKLIST
CLEANING GREEN
FINAL PREPARATION FOR SHOWING THE HOUSE - SETTING THE STAGE
MARKETING PLAN TO SELL HOUSE
AD HEADLINES TO GRAB THE BUYER'S ATTENTION
MAKING THE APPOINTMENT TO SHOW HOUSE TO A POTENTIAL BUYER
PREP TO SHOW CHECKLIST
WRITING CONTRACT
WHAT IS A DISCLOSURES
NEGOTIATING CONTRACT
WHOLE HOUSE INSPECTION
HOW TO HAVE A SUCCESSFUL CLOSING-SETTLEMENT
CLOSING CHECKLIST
NO STRESS MOVING PLAN AND TIPS
REAL ESTATE TERMS A to Z
SELLER'S GUIDE E-BOOK
STATE REAL ESTATE SITE LINKS
RESOURCE LINKS
BIODEGRADEABLE CLEANERS FOR CLEANING YOUR HOUSE AND STAYING GREEN
WHAT IS A DISCLOSURES
 
Let’s take a look at
                    Disclosures...   
 

   As the seller, you are legally bound to disclose to the potential buyer any and all defects present in your house that you know about prior to the sale.

  Over the years legislation has been put in place to better protect the buyer from miss information about the house they are buying. In the old days you heard about
caveat emptor which meant buyer beware and the responsibility to find out about problems was set on the shoulders of the buyer. The only exception was if the seller actively concealed latent defects or otherwise made material misrepresentations amounting to fraud. But today the seller is held accountable. Buyers can sue for damages and conceivably force the seller to make restitution and reclaim the house. Though this is highly unlikely, it has been known to happen.
 
  To minimize the possibility of such lawsuits from taking place, many states now have mandatory disclosure laws. Sellers must now make sure that the buyer is aware of any and all defects in or on the property, from water damage to structural problems and everything in between.

   This does not mean that you must fear these disclosure laws but look at them as a way to protect yourself. Buyers are not put off by disclosures but view them as a positive. Through the disclosures they are made aware of what they are getting into and can budget and plan accordingly. They may use the disclosure to negotiate the price but many times you can split the projected expense with the buyer as you will not benefit from the repair or improvement. An interested buyer will accept some defects – after all, perfection is impossible to find! Moreover, the buyer will appreciate your honesty upfront rather than discovering problems after moving in.

But be warned, as a seller, you may also be held accountable for unknown defects
that may cause the buyer problems in the future.

  
Now, you may be asking yourself, “How do I know if I found all the defects in my home?” It is a good idea to protect yourself by investigating any potential problems and
taking the steps necessary to try and fix them. This can be accomplished simply by hiring a competent inspector up front to check the house thoroughly before the sale. By doing this you will have their report and it shows you have been prudent in your attempt to disclose.

Note:
You also have the option to wait until you have a contract on your house. Many buyers often have their own inspector search for defects and have a clause in the contract that they can renegotiate if any defects are found. This is a good way to go too. You can disclose those defects you know about and then negotiate with the buyer if any more defects are found during the inspection phase of the sale. A plus to this is you don’t have to pay for the inspection the buyer pays for it and you both get copies.

   To help you with the disclosure process, as you go through the house in the prepare house 4 SALEL process to note what needs to be done including repairs, decluttering and staging take along your disclosure statement form and fill it in as you find problems. Don't forget the attic, foundation/basement. In these two areas look for signs of leaks, in the foundation/basement look at the walls and check for cracks and signs of pest infestations.
 
    As I mentioned above your disclosure statement can serve as a negotiating tool.  For example:
 
   Let’s say that your disclosure and the inspection report lists faulty plumbing needing upwards of $2,000.00 to repair. The buyer counters with a request for you to repair prior to closing. You could negotiate that you credit the buyer with $1,000.00 off the purchase price advising the buyer that this would give them control over the repair. Your reason to split is that you will not get the benefit of the repair. They can put the money towards fixing the plumbing and select their own plumber and you save the money and time involved in fixing the problem yourself – if they accept everyone is satisfied. Your other option is to let this buyer go and wait for another buyer. But be advised the next buyer will probably also want the repair so you may want to fix the plumbing and save this deal and spend the $2,000 rather than maybe delay your sale for months and t ohen be faced with still having to make the repair.  It is possibly better to try to negotiate with your present buyer and try to reach some agreement. Consider making the repair and possibly adjusting some other term of contract.

   Remember when a buyer looks at your house give them a copy of your disclosure and answer any questions they ask honestly. You should disclose any problems that
you are aware of. Many times if the buyer is aware of problems before the contract is written they accept problems as they exist and take them into consideration before they make their offer. This way there is no suprise when it comes up on the inspection and the buyer does not feel the need to renegotiate. I advise that if the buyer is presenting a contract that you take this time to both sign the disclosure statement and date it. This is your proof that the buyer was in fact aware of a problem that they may come back and say was not disclosed. Without this, you have no protection.

   On the state links page you can check your state for a sample of a disclosure statement.
If no official disclosure statement exists in your state, have your attorney write one up.
  
   Again, the best time for you to inspect your House for your disclosure information Is when you are going through and Preparing your checklist of the condition of your house.   
                                       lightbulb guy with magnigying glass
   Using your Disclosure form write down any Problems you find putting a star or highlighting those problems you plan to fix.

 
   Many states require different forms and Contracts so on the state links page you will find a listing  Of the states and if you click on the link for your State you will go that state's realestate page on that state's government website. 



E-book

has a  printable sample of a Disclosure Form

Disclosure Sample below



TO CONTINUE TO   NEGOTIATING CONTRACT  

Below is a sample Disclosure for information purposes to allow you to see what is in a Disclosure:

SAMPLE SELLER’S PROPERTY DISCLOSURE STATEMENT
 
For property located at:
Legal Description Subdivision_________________________
Lot _________, block _____________, commonly knows as address:__________________________________________
_________________________________________________
City________________________, State_________________ Zip:______________________________________________
 
Seller; All Names as they appear on the DEED: _________________________________________________
 
Notice to Buyer and Seller: This disclosure statement is designed to assist Seller in disclosing to Buyer all known material or adverse facts relating to the physical condition of the Property that are not readily observable. All questions are to be answered completely. If answers are affirmative, please explain in detail in the “Additional Explanations” section.
 
CIRCLE CORRECT RESPONSE    YES    NO    DO NOT KNOW
 
1.  What is the Occupancy of the Property?
a. Is Property vacant?                          YES     NO     DO NOT KNOW
b. If yes, when last did Seller occupy Property?                                            
                                                           
YES     NO     DO NOT KNOW
c. Are there any written or verbal leases on Property?                                   `                                                         YES     NO     DO NOT KNOW
If yes, enter termination dates of leases: _____________
2. Soil, Trees, Shrubs and Boundaries:
a. Other than normal settling, are you aware of any earth movements
such as sliding, upheavals, or sinkholes?YES     NO     DO NOT KNOW
b. Are you aware of any earth stability or expansive soil problems?                                            YES     NO     DO NOT KNOW
c. Other than foundation backfill, are you aware of any landfill, burial pits, mine shafts, or well holes on Property?          YES     NO     DO NOT KNOW
d. Are you aware of any dead or diseased trees or shrubs?                                                  YES     NO     DO NOT KNOW
e. Are you aware of any boundary line disputes, encroachments, or
unrecorded easement disputes regarding Property?                                              YES     NO     DO NOT KNOW
3. Roof, Gutters and Downspouts:
a. Please enter the approximate age of roof in years:   _________________
b. Has the roof been repaired or replaced while you owned Property?                                              YES NO DO NOT KNOW
c. Are you aware of any leaks or other current problems with the roof, gutters or downspouts?                                         YES     NO     DO NOT KNOW
4. Termites, Dry-Rot, Pests, and Wood-Destroying Organisms:
a. Are you aware of any past or present damage caused by infiltrating pests, termites, dry rot, or other wood-destroying organisms?                                                 YES     NO     DO NOT KNOW
b. Have you ever had the Property inspected for termites, dry-rot, pests or wood destroying organisms?                            YES     NO     DO NOT KNOW
If yes, enter date of inspection: ________________
c. Has the Property been treated for termites, dry rot, pest or wood destroying organisms.                                             YES     NO     DO NOT KNOW
If yes, enter date of treatment: ________________
d. Is Property under a current warranty or other coverage for termites or other wood-destroying organisms by a licensed pest control company?                                             YES     NO     DO NOT KNOW
If yes, enter name of company: _______________________________
5. Structural Items, Additions and Alterations:
a. When was the main residential dwelling constructed? Year:  
                                               _______ or  DO NOT KNOW
b. Other than normal settling, are you aware of any movement, shifting, settling, cracking, deterioration, or other structural problems with any dwelling or garage on Property?                                        YES     NO     DO NOT KNOW
c. Are you aware of any structural reinforcement having been added to any dwelling, garage OR other out building on Property?                              
              YES     NO     DO NOT KNOW
d. Are you aware of any structural problems with retaining walls, driveways, walkways, or patios on Property?          YES     NO     DO NOT KNOW
e. Have there been any additions, or major structural alterations to dwelling or garage on the Property?                        YES     NO     DO NOT KNOW  
f. Are you aware of any work done to the Property that was not in compliance with building codes or zoning regulations, or where necessary permits or approvals were not obtained?                YES     NO     DO NOT KNOW
g. Is asbestos contained in the exterior siding or cladding of any dwelling or garage on the Property?                         YES     NO     DO NOT KNOW
6. Drainage, Flooding and Moisture:
Have you been made aware:
a. of any water leakage, accumulation, or dampness within the basement, crawl space or other parts of the main dwelling below ground level?                                                      YES     NO     DO NOT KNOW
b. of any repairs being made to control water or dampness problems in the basement, crawl space, or other parts of the main dwelling at or below ground level?                                                      YES   NO DO NOT KNOW
c. if the Property is located in a flood zone?                                                      YES     NO     DO NOT KNOW
d. of any drainage problems or flooding?   YES     NO     DO NOT KNOW
e. of any problems with siding or exterior cladding retaining moisture, swelling, chipping or delaminating?                          YES     NO     DO NOT KNOW
f. of any mold appearing on interior portions of any dwelling other than on the walls, floors or ceilings of showers/bathtubs?     
                   YES     NO     DO NOT KNOW
7. Plumbing Related Systems:
a. What is the type of sewage system:      ___Public ___Private ___Septic
b. Is the main dwelling served by                                                            ___sewage pump  ____ lift system  
c. Has any septic tank or cesspool on the Property ever been professionally serviced and/or emptied?                          YES     NO     DO NOT KNOW
If yes, enter the date of last service: ______________
d. What is the drinking water source:          __Public __Private __ on site Well
e. If your drinking water is from a well, has it been tested within the past twelve months.                                                   YES     NO     DO NOT KNOW
f. Do you have a water softener, filter or purifier?                                                    YES     NO     DO NOT KNOW
If yes, is it __Leased or __Owned
g. Are you aware of any past or present leaks, backups, or other problems relating to plumbing, water or sewage-related items?    
                    YES     NO     DO NOT KNOW
h. Is there any polybutylene plumbing, other than the primary service line, on the Property?
                                                                YES     NO     DO NOT KNOW
8. Other Systems and Components:
a. What type of air conditioning system(s) serve(s) the main dwelling?
____Electric Heat Pump ____ Window Units
b. Approximate age of air conditioning system(s) _____ years
c. What type of heating system(s) serve the main dwelling?
____ Electric Heat Pump             ____ Gas Forced Air         ____ Oil Forced Air
____ Electric Radiant                   ____ Oil Radiator              ____ Electric baseboard
____ Oil hot water baseboard     ____ Gas hot water baseboard
d. Approximate age of heating system(s): ____ years
e. How is hot water heated in the main dwelling?
___Electric  ___Gas ____Oil  ___Solar
f. Approximate age of hot water heater: _____ years
g. Does the main dwelling have aluminum wiring other than the primary service line?                                                         YES     NO     DO NOT KNOW
h. Is there any system or appliance which is leased or which has a fee associated with its use?                                             YES     NO     DO NOT KNOW
i. Are all fireplaces in good working order?                                                      YES     NO     DO NOT KNOW
j. When was the fireplace, wood stove or chimney last cleaned?  
                   YES     NO     DO NOT KNOW 
                                          If yes Date: _____________
 
9. Toxic Substances:
To the best of you knowledge do you know:
a. of any underground tanks or toxic substances on Property such as asbestos, benzene, methane gas, polychlorinated biphenyls (PCBs), radioactive material, radon, urea-formaldehyde, or others?        YES     NO     DO NOT KNOW
b. if Property has ever been tested for radon or other toxic substances?
                                                                 YES     NO DO    NOT KNOW
    If yes when was the test done and what were the results:
                   Date______________
RESULTS: _________________________________________________________

10. Covenants, fees and Assessments:
a. Is the Property part of a condominium subject to covenants, conditions and restrictions?                                              YES     NO     DO NOT KNOW
b. Is the Property part of a community association subject to covenants conditions and restrictions, Governed by a Home Owners Association?                                              YES     NO     DO NOT KNOW
c. Is there a mandatory annual assessed Association membership Fee?
                                                                 YES     NO     DO NOT KNOW
If yes, enter the amount            $________ due per ___________
d. In purchasing the Property, will any initiation, transfer, or similar fee be owed to an Association?                                         YES     NO     DO NOT KNOW
If yes, enter the amount            $______________
e. Are there any special assessments approved by but yet not owing or due to the Association?                                        YES     NO     DO NOT KNOW
f. Are there any past due fees or dues owed the Association?                                              YES     NO     DO NOT KNOW
g. Is there a copy of the Covenants and Restrictions available?                                                  YES     NO     DO NOT KNOW
11. TITLE ISSUES:
Has the Property or any part of it ever been the subject of litigation
including, but not limited to, construction defects, defective
building products, termites, or title problems?
Are your aware:
a. of any award or payment of money in lieu of repairs for such as
defective building product?                         YES     NO     DO NOT KNOW
b. if any release has been signed that would limit a future owner from
making any claims in connection with Property?
                     YES     NO     DO NOT KNOW
c. of any fire, flood or wind damage which required repairs to Property
in excess of $500.00?                                YES     NO     DO NOT KNOW
d. if any fixtures or appliances included in the sale that are in need of
repair?                                                                     YES     NO     DO NOT KNOW
e. of any repairs that need to be made to the electrical, plumbing, or
heating and air condition system?                    YES     NO     DO NOT KNOW
f. Have there been any inspections of the Property in the past year?                                                          YES     NO     DO NOT KNOW
12. Lead-Based Paint:
Was the dwelling or any part of the residential improvements to the
Property constructed prior to 1978?            YES     NO     DO NOT KNOW
If “yes” or “Don’t Know,” Seller shall provide Buyer with a separate
warning and information regarding lead-base paint and lead-base paint
hazards. To be attached to contract.
 
13. Agricultural Disclosure:
Is any part of the Property within or adjacent to property zoned or
legally designated for agricultural or forestry use?                                                         YES     NO     DO NOT KNOW
Warning: Normal farm and forest activities such as disposal of manure, application of chemical fertilizers, herbicides, and pesticides, all may cause discomfort, and one or more of these inconveniences may occur as the result of farm or forest activities which are in conformance with existing laws and regulations and accepted customs and standards.
 
14. Notice:
Many local law enforcement authorities maintain the locations of persons
such as sex offenders who might be required to register their addresses.
You may contact local law enforcement authorities for information about
the presence of these individuals in any neighborhood.
 
15. Fixtures and Other Items:
The Property includes the fixtures and other items checked below. If there
is more than one of a particular item (such as a second chandelier
or third air conditioner put number of items on the line) It is understood that all checked items will convey with the property. Items that are not checked although they may be on the property do not convey and will be removed by the seller.
 
Exterior
 
_____ Storage Building      _____ Gazebo  _____ Garden Shed
_____ Free standing deck  _____ Lawn Benches
_____ Hot Tub  _____    Free standing    _____ Built in
_____ Does Hot Tub include Locking safety cover  yes/no   
_____ Built in masonry Grill   natural   gas   charcoal   propane   other
_____ Built in fire pit    natural gas    wood    propane
_____ Free standing fire pit
_____ Propane Gas Tanks
_____ Barn or other out building
_____ Work Shop (wood working or art studio)
_____ In ground Swimming Pool   _____ Above ground Swimming Pool
_____ Fence around Swimming Pool   _____ Pool Cover
_____ Diving Board   _____ Swimming Pool Accessories
_____ Swimming Pool Heating System
_____ Separate enclosed Pool filtering system
_____ Boat Dock   _____ Boat House    _____ Tree House   _____ Playhouse
_____ Security Gate(s)     _____Fence 
 _____ Invisible Fence   __ Fence Pet Collar
_____ Birdhouses    _____ Mailbox   _____ Swing Set
_____ Trellis    _____ Awning
_____ Basketball Post & Goal   _____ Landscaping Lights
_____ Flag Pole   _____ Sprinkler System    _____ Weather Vane
_____ Statuary    _____ Well Pump
_____ Satellite Dish/Receiver
_____ Screen Doors    _____ Screens  
_____ Storm Doors     _____ Storm window
_____ Door and Window Hardware
_____
_____
_____
_____
 
 
INTERIOR HOUSE SYSTEMS
 
_____ Basement Sump Pump
_____ Air Purifier    _____ Built-in   ____ Free Standing
_____ Dehumidifier free standing or built in
_____ Humidifier free standing or built in
_____ Intercom System built in  
_____Stereo System built in     _____ Pre-Wired Speakers
_____ Water Purification System      whole house built in or under sink
_____ Water Softener System          whole house built in or under sink
_____ Alarm System burglar    Surface mounted or Whole House Wired
_____ Smoke Detectors          _____ Carbon Monoxide Detectors
_____ Telephone Jacks/Wires
_____ Television Antenna       _____ Television Cable/Jacks
_____ Whole House Vacuum   _____ Vacuum Attachments
_____ Garage Door Opener      _____ Remote Control
__ Attic Fan (Whole House Fan) __ Built-in __ Free Standing
__ Attic Ventilator Fan
__ Water Heater   ___ Gas   ___ Electric
 
Interior
 
_____ Stove   __ Gas    __ Electric __ Built-in __ Free Standing
_____ Surface Unit Cook Top     __ Gas  __ Electric 
_____ Vent Hood   outside vented   re-circulating
_____ Microwave Oven __ Built-in __ Free Standing
_____ Refrigerator __ Built-in __ Free Standing    Ice Maker
_____ Dishwasher  __ Built-in __ Free Standing
_____ Trash Compactor__ Built-in __ Free Standing
_____ Washer    
_____ Dryer    ___ Gas   ___ Electric
_____ Garbage Disposal
_____ Cabinets
 
_____ Shelving Unit & Closet System
 
_____ Interior Door & Window Hardware
 
 
_____ Jetted tub
_____ Mirrors
_____Over toilet Cabinet
_____ Vanity
_____ Shower rod
_____ Shower head/sprayer
_____ Sauna Insert
 
_____ Light Fixtures    _____ Switch Plate Covers
_____ Chandelier
_____ Ceiling Fan
_____ Radiators plug in
 
 
_____ Freestanding fireplace
_____ Ceramic Logs in Fireplace
_____ Fireplace tool set
_____ Firewood
_____ Firewood holder
_____ Wood Burning Insert
_____ Fireplace Blower
 
_____ Window Drapes/curtains
_____ Window Blinds
_____ Window Shutters
_____ Window Shades
 
List other fixtures not listed above that will be removed and will not convey with the property.
____________________________________________________________
____________________________________________________________
___________________________________________________________
___________________________________________________________
____________________________________________________________
___________________________________________________________
 
Those items and fixtures that will not convey with the property shall remain
YES     NO     DO NOT KNOW    the personal property of Seller and shall be removed according to the provisions of the contract in a timely fashion prior to closing. Seller shall lose the right to remove any such fixtures or items not removed on a timely basis. In removing fixtures and items, Seller shall use reasonable care to prevent damage and, if necessary, restore Property to its original condition.
 
16. Natural Hazards:
a. Is property located in a flood hazard zone subject to unusual
flood risk?                                                 YES     NO     DO NOT KNOW
b. Is property in an inundation zone subject to flooding in the
event of a dam failure?                              YES     NO     DO NOT KNOW          
c. Is property on a Federal Emergency Map and described as a high fire-hazard severity zone?
                                                                YES     NO     DO NOT KNOW
d. Is property in a wildlife fire area where the state has responsibility for fire suppression?                                             YES     NO     DO NOT KNOW
e. Is property in an earthquake fault zone ?                                                      YES    NO     DO NOT KNOW
f. Is property in a seismic hazard zone subject to unusual ground movement during earthquakes?                                  YES     NO     DO NOT KNOW
 
17. Special Hazards:
a. Is property within one mile of past or present military training
facilities that may contain potentially explosive munitions ?
                     YES     NO     DO NOT KNOW
b. Is property near any existing or planned mining sites, toxic
waste sites or other environmental hazards ?
                    YES     NO     DO NOT KNOW
18. Additional Explanations or Disclosures:
If it is necessary to further describe repairs or problems attach separate sheets.
 
Seller’s representation:
 
Seller warrants that to the best of seller’s knowledge the above information is complete and accurate as of the date signed by below.
 
However, this Disclosure is not to be construed as a substitute for inspection and/or to imply any warranties.
 
 
Seller:______________________________________Date:_____________
 
Seller:______________________________________Date:_____________
 
Buyer’s receipt and acknowledgement:
 
I acknowledge receipt of this Disclosure. I understand that except
as stated in the Purchase and Sale Agreement with Seller, the property is being sold in its present condition only, without warranties implied or otherwise or guarantees of any kind by Seller. No representations concerning the condition of the property are being relied upon by me except as disclosed herein or stated in the Purchase and Sale Agreement.
 
Buyer:_______________________________________Date:_____________
 
Buyer:_______________________________________Date:_____________

Be sure to get a Disclosure form that complies with your State's Regulations.
Visit  State links


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Copyright©Oct 1, 2009 forsalebyownerhow2 abef Blake Enterprises  
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