Why Every Home Seller Must Disclose Defects Before Listing

By Jason Starr

With over 30 years of combined experience, we understand the finer nuances of selling your home. We know where the seller's largest loss of revenue is when selling and the 4 reasons why a home doesn't sell. Want to learn? Contact us knowing you'll receive no pressure and total confidentiality.

One of the biggest questions when selling a home is: what needs to be disclosed? The answer is simple—everything. Any issues, big or small, should be shared with potential buyers. Hiding problems can lead to lawsuits, financial loss, and a damaged reputation.

A real-life example shows why full disclosure matters. A buyer purchased a home for nearly $1 million and had it inspected before closing. But the seller acted strangely, refusing to leave during the inspection. Normally, sellers step away to let inspectors work freely. Instead, this seller hovered over the inspector, making the process uncomfortable.

Furniture blocked parts of the home, and the seller wouldn’t allow anything to be moved. The inspector did the best possible job under the circumstances, and the sale went through.

Months later, the buyers discovered a serious problem. A back wall was soaked in bat dung, creating a strong odor and a hazardous mess. A pest inspector revealed the truth—the home had a long-standing bat infestation. The same pest control company had been there multiple times before, yet the seller never disclosed it.

Since there was no visible damage or odor during the inspection, the issue went undetected. Even with 20 years of experience, the inspector couldn’t catch what wasn’t obvious.

Once the buyers learned about the infestation, they took legal action. Lawsuits were filed against the seller, listing agent, inspector, and pest control company. The case went to court, and the buyer won. The seller was forced to pay over $50,000 for failing to disclose the problem.

Trying to hide property defects is a huge risk. Even if an issue isn’t found right away, it often surfaces later, leading to expensive legal battles. The smartest move is to disclose everything upfront and price the home accordingly.

A pre-listing inspection can help prevent these disputes. It allows sellers to identify and address issues early or adjust the price to reflect the home’s true condition.

The lesson is clear—full disclosure is always the right choice. Sellers may not believe in karma, but karma certainly believes in them. By being honest about every detail, sellers can protect themselves, maintain trust, and ensure a smooth transaction. If you have questions or need guidance, don’t hesitate to reach out. You can call me at 603-293-7227 or send me an email to StarrRealtyNH@gmail.com. I look forward to hearing from you.