Many sellers agree their most tedious task is gathering forms and completing their seller's disclosure packet. Disclosure questions are drafted by federal and state agencies and they can be repetitive and sometimes confusing. Luckily, HomeBay can prepare your disclosure packet for you and can answer any questions you have along the way. Learn more about seller's disclosure packets and why it's worth it to fill yours out immediately after you list.
You eliminate the buyer’s easiest termination right:State law states that if any disclosures or an amended disclosure are delivered after the offer is submitted, the buyer has the right to review the disclosures and terminate the offer without penalty. In California, this termination right lasts 3 or 5 days depending on whether you personally gave the disclosures to the buyer or mailed them to the buyer.
If you get an offer without first giving the buyer your disclosure packet, you make it easy for the buyer to cancel escrow without penalty - and as a seller, you never want to make it easy for the buyer to cancel escrow.
By completing your disclosures in advance and emailing them to potential buyers who view your home, you can eliminate this risk. You can even ask us to add a note to your listing that says, "Please review the disclosure packet prior to submitting an offer. As part of your offer, acknowledge that you have reviewed disclosures." to further protect yourself.
You make it difficult for the buyer to re-negotiate price:By giving disclosures to your buyer before they submit an offer, you make it difficult for them to attempt to re-negotiate during escrow. You make it especially difficult when you also have real estate inspections done prior to accepting offers, as explained here. But why?
This is typically how a real estate transaction plays out:
- The buyer submits an offer.
- The buyer receives the disclosure packet and inspection reports.
- The buyer reviews them.
- The buyer adds up all the needed repairs (or at least the repairs the buyer thinks he needs).
- The buyer asks the seller to make the repairs or credit escrow a dollar amount for the repairs.
Effectively, the buyer is asking you to take less money in exchange for your home, and you don't want to be in that position as the seller. By providing disclosures and inspection reports before the buyer submits an offer, you make it difficult for them to ask for repairs and credits from a moral perspective. The buyer knew the problems with your home prior to submitting their offer, and presumably factored them into their offer price.
You can shorten escrow and speed up the sale of your home:In most areas in California, the contingency period is 17 days. In Florida, the default is 15 days. However, if your seller's disclosure and real estate inspections are done in advance, you can often shorten the contingency period to 10 days or less, meaning you get to sell your home faster.