Once upon a time…
There was a family.
This family consisted of a father, a wife, a son and daughter.
The family worked hard, pinched pennies, saved up for a few years…
And bought a nice new home with a white picket fence, Jacuzzi in a backyard, new roof, new interior/exterior paint, and it was even in a great neighborhood.
They even bought a dog.
Life was perfect… The American Dream was live and well.
Until one day…
One evening, while mom and dad were cooking dinner, the son and daughter decided to jump into the Jacuzzi.
It started to get dark out so the son and daughter played rock, paper, scissors to see who would have to turn the light on.
They chanted- “Rock, paper…”- while their fists pounded their other hand.
“Scissor”- they both froze and looked at the others play.
The son picked paper, and the daughter picked rock.
“Paper beats rock!” the son shouted.
The daughter knew she lost fair and square so she jumped out of the Jacuzzi and ran to the side of the house to flip a backyard light on.
That’s when it happened.
She was instantly electrocuted and died.
The family was rightly devastated.
They looked for someone to blame.
Immediately they pointed the finger at the previous owners. Paperwork was pulled and it showed that the owners had disclosed that the backyard light-switch was faulty and they recommended fixing it.
They then pointed the finger to the house inspector.
But the house inspector pulled up a copy of the inspection he gave to them and he had also pointed out in his inspection that this switch needed to be replaced…
The inspector even wrote down that there was a possibility of electrocution if it wasn’t fixed.
Reality sunk in.
There was no one to blame but themselves…
Sadly, this is a true story.
This story goes to show just why it is so important to disclose everything.
Now I know the majority of this post is a sad story-and if you are human- it brought you down. But I hope it helped get the point across to you: Accidents happen, people get blamed, and things can get messy.
This is why it’s so important to disclose the condition of your property when you are selling your finished product (and to use licensed contractors, and have insurance).
BTW- if you have a faulty light switch…just fix it!- this is a ridiculously sad story that could have been easily avoided with a cheap fix.
Now you know to Disclose, Disclose, Disclose….
Stove doesn’t work?
Roof had a leak?
Faulty light switch?
Have any doubts on if you should disclose it? – disclose.
One of the worst things you can do is hide something from a potential buyer.
Not only is it wrong, but it can also come back to bite you in the a$%.
So be transparent and be sure that you disclose EVERYTHING to a potential buyer.
Some of the disclosures you are going to use when selling your property (in CA) to be transparent are:
- TDS – Transfer Disclosure Statement
- SPQ – Seller Property Questionairre
Both of these forms will go over the condition of the house. Everything from the stove, to repairs, to sprinkler systems, zoning violations..and everything in between.
I’ll spare you the details because you’re Realtor will help you figure out what forms in your state are used to disclose the condition of the home to a potential buyer. All you need to know is to- Disclose everything.
*Pro-Tip: Disclose something to a potential buyer during negotiations and let them know that you’ll fix it as part of your counter-offer.
So disclose, buy insurance And build a SOLID product.
You could save a life.
Plus you want to build something you are proud of anyways, right?
To learn how to build Real Estate that you are proud of join the BTG Mentorship Program by CLICKING HERE
That’s it for today. I promise the next one won’t be such a downer!
Chris M Cordova
CFO Better Tomorrow Group
Chris is an active investor, Realtor, Broker, marketer, serial entrepreneur, and co-founder of Better Tomorrow Group. Follow Better Tomorrow Group on Instagram @bettertomorrowgroup on Twitter/Periscope @TheBTgroup and Facebook at Better Tomorrow Group. If you would like a FREE copy of Flipping Your Thoughts On Flipping Follow this LINK.