JamieD posted on September 01, 2010
In this tough market, some sellers aren’t as forthcoming as they should be about their property.
Some common white lies and misrepresentations that sellers tell and that buyers should be wary of as they shop for a new home are :
- Taxes and heating costs are low. Ask to see recent bills and get up-to-date information from the tax assessor’s office. Look for unrecorded improvements like decks and finished basements.
- Exaggeration of space and size: Some sellers are inclined to exaggerate, but smaller dimensions can result in a lower appraisal, the leading cause of scuttled deals. New York real estate attorney Michel Xylas recommends a carefully worded appraisal contingency in the purchase contract.
- Knowledge of previous damage: Buyers can find out a home’s history of property damage by buying a report from the Comprehensive Loss Underwriting Exchange (CLUE).
About 30 states have disclosure laws that require sellers to tell prospective buyers about any problems.