Failure to Disclose: Should Buyers Sue Sellers for Not Revealing Problems

Can a buyer sue a seller for failure to disclose information about the house? 

As a buyer, you deserve to know about every problem with the house, from the leaky roof to the small colony of black mold hiding in the cabinet in the laundry room. 

If the seller fails to disclose a problem to you during the property transfer process, should you start calling lawyers, or can you settle this issue yourself outside of a courtroom? It all depends on the real estate disclosure laws in your state and how far along in the purchase process you are.

Real estate disclosure laws
Real estate disclosure laws differ from state to state, but in most places in the U.S., sellers are required to disclose info to a prospective buyer that could affect the property value. That could be anything from a termite infestation to a property line dispute with a neighbor. If your house was built before 1978 and has lead paint, federal law requires this to be disclosed as well.

Sellers must volunteer information about their property to the buyer; it's not enough to just wait for a buyer to ask a question and answer honestly, according to California real estate attorney Bryan Zuetel of Irvine, CA. In many states, that information is shared through a disclosure form, where a homeowner outlines details about the house. That form will include negative information as well as basic facts such as the square footage.

Sellers do not have to disclose something that they don't know about. But if it can be proven that something was known and omitted, a seller can get in big trouble.

"A seller may be liable to the buyer for the nondisclosure of material facts, negligent misrepresentation of facts, intentional misrepresentation of facts, or suppression or concealment of facts," Zuetel explains.

Should you sue a seller for failure to disclose before the sale?
If the seller fails to disclose information about the house but you haven't yet signed on the dotted line, you may be able to cancel the purchase. Canceling the purchase could be a lot less costly and time-consuming than suing the seller.

Laws in most states guarantee a buyer the right to cancel a transaction due to discovery of certain facts during the transaction. In California, for example, Zuetel says a buyer may terminate a transaction within a certain number of days after receiving a disclosure regarding natural hazard zones around the property.

Most real estate attorneys recommend including contingencies in the residential purchase agreement that will give buyers an out, and require any money held in escrow be returned to them (pending a review of the disclosures and the property). If your contract has this contingency in place, you should be able to cancel the transaction and walk away without losing anything but your time.

Should you sue a seller for failure to disclose after the sale?
Things get more complicated if you buy the property. That's when you may land in a courtroom, but a lawsuit could still be avoided, says Zuetel.

"The dissatisfied buyer can contact the seller to determine whether the parties can work out an agreement or settlement of the issues," he notes.

In fact, some purchase contracts will contain a provision that the buyer and seller must try mediation before the filing of a lawsuit, while other purchase contracts will require that disputes between the buyer and seller must be arbitrated, rather than litigated in court.

If you do end up suing the seller, you could seek monetary damages for the seller's failure to disclose information or misrepresentation of the property. The amount you sue for can include damages for the difference between the amount that the buyer paid and the fair market value of the property at the time of the sale, Zuetel says.

Meet Me Outside

8 Signs a Home Buyer Isn’t Serious

If all those excited home buyer declarations like “This place is just perfect for us” and “I have to have it!” were binding, selling houses would be a breeze. But, as with everything in life, it’s not what people say, it’s what they do that really matters.

Still, it’s hard for home sellers to not get their hopes up when a buyer’s gushing over their home—only to be disappointed when the buyer disappears without a peep.

So what are some signs a buyer isn’t serious about your home?

It’s a good thing experienced REALTORS® can tell the difference between the buyer who means business and the one who has no intention of actually sealing the deal—and that these pros graciously agreed to clue us in.

Do any of the following red flags sound familiar? Keep each in mind, and you can save yourself the drama of dashed hopes.

Sign No. 1: The buyer is flying solo

If a buyer doesn’t have a real estate agent yet, he probably isn’t serious about shopping for a home.

“Buyer’s agents come at no cost to the buyer, since the seller pays the buyer’s agent’s commission,” explains Daniel Bortz, a REALTOR® in Maryland, Virginia, and Washington, DC. Do you think a shopper who can’t be bothered to enlist free expert help is motivated enough to start putting papers in motion? We don’t think so either.

To put things in perspective, consider this: 87% of buyers recently purchased their home through a real estate agent or broker, according to a survey conducted last year by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers and sellers. You do the math!

Sign No. 2: The buyer just began shopping

The old adage that timing is everything applies to selling homes as well. Typical home buyers take three months to buy, so if a seller is entertaining interest from someone on Day 1 or Week 1 of her house hunt, chances aren’t good that she’s the one.

“Many buyers look at a number of houses before they decide what they want,” says Bortz. “And if they’re at the early stages in their search, you’re less likely to receive an offer.”

Sign No. 3: You meet the buyer at an open house

It’s also less likely that a seller will score an offer from a buyer at an open house. According to a report from the NAR, only half of home buyers visit open houses—and those who do may be trying to avoid too much attention by hiding in the herd.

Serious buyers, on the other hand, will conduct their home search online, then once they spot a home they like, request a private showing.

It’s like dating: Asking to see a home one on one carries more weight than asking someone, “Hey, wanna hang out in a group?”

Sign No. 4: No pre-approval from a lender

There’s no need to read between the lines of this sign.

“You need to include a pre-approval letter from your lender when you submit an offer on a property,” says Bortz. “Without one, there’s no indication to the seller that you can actually afford to purchase the home.”

Sign No. 5: A speedy visit Buyers who zip along while they’re checking out the property aren’t likely to cross the finish line with you.

“Rushing through an open house is a definite sign of lack of interest,” says Abigail Harris, a sales associate with Coldwell Banker residential brokerage in the Boston area. Breezing through without asking questions, however, isn’t necessarily a bad sign, she adds. “Many buyers feel that they have all the answers and don’t need to ask questions.”

Sign No. 6: All promises, no action

Call it a bait and … stall. “You can tell that a buyer is dragging her feet if she says she’s very interested in making an offer but it is taking days for her to actually submit one,” says Bortz, who has encountered this phenomenon a number of times. “Typically such buyers are seriously interested, but they’re also strongly considering making an offer on another property, so they might be weighing their options before they make an offer on one of them.”

Sign No. 7: A (really) lowball offer

Everyone wants to score a deal, but if a buyer offers an “unreasonably low” sum, says Harris, that’s a “sure sign that they don’t really want the property.”

“Serious buyers in today’s market make their best offer right out of the gate,” explains Bortz. “So I’m honestly not sure why someone would throw out a ridiculously lowball offer. Maybe [it’s] just to test the waters?”

Sign No. 8: Lots of nitpicking

Even after the buyer has made an offer and you have accepted it, she still might not be 100% onboard with buying the property. Is she obsessed with finding faults and problems in the home?

“That’s a definite showing of disinterest,” says Harris. Bortz agrees, adding, “If she has a home inspection contingency and wants you to fix every single little thing that the inspector spots, such as a loose door knob, she might be looking for you to just give in and say, ‘No, I’m not fixing anything,’ so that she can back out of the deal.”

Sell Your Home For Top Dollar: Insider Staging Tips

Staging your house can make you money. Seventy-one percent of sellers’ agents believe a well-staged environment increases the dollar value buyers are willing to offer, according to the NATIONAL ASSOCIATION OF REALTORS® “2015 Profile of Home Staging.”

Just take this real world tale of two condo listings from Terrylynn Fisher, a REALTOR® with Dudum Real Estate Group in Walnut Creek, Calif., who also stages:

Both units were in the same complex. One hadn’t been staged or updated since it was built; the other was staged and had been slightly refreshed (a little paint here and there and one redone bath). Otherwise, both units were the same size and layout. The staged condo sold for about $30,000 more than the unstaged unit, she says. “People couldn’t believe it was the same model.”

Before your eyes turn into dollar signs, keep in mind staging isn’t guaranteed to get you more money. But it’s an important marketing tool to help you compete at the right price, which means you can sell faster. (A study from the Real Estate Staging Association bears this out.)

Helping buyers fall in love with your property takes more than running the vacuum and fluffing the pillows: It’s all about decluttering, repairing, updating, and depersonalizing, say REALTORS® and stagers.

With help from Fisher and other sources, we’ve compiled the ultimate home staging checklist.

Living Room

• When placing anything from accent pillows and table lamps, go for symmetry, which is pleasing to the eye.
• Light it up with lamps. Chic lamps provide both added lighting and appealing decor.
• Make that fireplace glow. Scrub away soot stains and replace the old screen.
• If you’re using staging furniture or buying slip covers, choose light colors for an airy, inviting feel.
• Whatever amount of furniture you have in your living room, remove a few pieces to make the room feel spacious.
• Use bright, coordinated accessories like accent pillows and throw blankets for a chic splash of color.
• Help buyers imagine their life in your home. Set the scene by displaying a board game or tea service on the coffee table, and arrange furniture in conversational groups.
• Let a slideshow of beautiful images play on your television like a screensaver.

Kitchen

• Clear everything from countertops except one or two decorative items, like a vase of flowers or bowl of fresh fruit.
• Pack up all the dishes except one attractive, matching set. Do the same with glassware, flatware, and cookware, and pare down all other cupboard and drawer items down to the minimum.
• Freshen up and modernize those cabinets with a fresh coat of paint or stain and new hardware.
• Seriously evaluate your appliances. Can they look new again with a good scrubbing? Give it the old college try or consider replacing with new models. The Real Estate Staging Association strongly recommends stainless steel. Tip: You can get the look of stainless for the cost of a cheap dinner with stainless films.
• Remove those fridge magnets and give the door and handles a good cleaning.
• Scrub dirt, grime, and stains from walls, cabinets, and backsplashes.
• Clean cabinet interiors, especially under the sink.
• Clean and organize the pantry, leaving some empty space to make it look bigger. Store items in decorative baskets and display a few jars of fancy jam and other upscale condiments.
• Empty all trash cans and move them out of sight.

Bedrooms

• Go gender neutral in the master bedroom. Ditch those dainty, floral pillow shams or NASCAR posters.
• Pack up all but the clothes you’re wearing this season to make your closets look larger.
• Swap out the motley crew of mismatched hangers in your closet for a set of wooden ones to create a classy, boutique look.
• Put jewelry and other valuables in a safe spot.
• Consider giving extra bedrooms a new identity as a home office, sewing room, or another interesting function.
• Remove televisions or video game consoles from bedrooms to depersonalize and create a serene setting.

Dining Room

• Let buyers entertain the idea of entertaining. Set out some chic place settings around the table, or a few wine glasses and a decanter on the buffet.
• Strike a balance between overly formal and too casual with an attractive runner and a few fun, decorative elements — think small floral vases or short candle holders.

Bathroom

• It’s de-grime time: Scrub and sanitize the walls, floor, shower door — virtually every surface that comes in contact with steam.
• Spend extra time scrubbing that tile grout and re-caulk around the tub if necessary.
• If your bathroom tile is dated, try paint instead of replacing it. Start with a high-adhesion primer and either epoxy or latex paint.
• Remove clutter from the countertop, tub, and top of toilet. Clean surfaces until they gleam.
• Pack up and hide all your personal products — from medicine to razors.
• Create a luxury spa look with a fancy soap dispenser, fluffy white towels, decorative baskets, candles, plants, a white shower curtain, and a new bath mat.
• Fix leaky or running toilets and replace toilet seats.
• Remove hard water stains on faucets and shower heads. (Try vinegar!)
• Take a daring sniff of the drains. Odorous? Clean them out, and deodorize with baking soda, boiling water, or vinegar.
• Time for a new sink anyway? Try a pedestal sink to optimize precious bathroom space.

Walls, Windows & More

• Have a dark corner or hallway? Brighten it up with a decorative mirror.
• Neutralize the walls. If any rooms are painted in dark colors, repaint white or beige.
• Paint adjacent rooms the same color to make the whole space feel larger.
• Fill nicks and holes in walls, and touch up with paint.
• Sorry, wood paneling. It’s time. Paint over paneling with a neutral color. To really cover your tracks, use wood filler between panels and paint over the entire thing.
• Make sure every switch plate and outlet cover matches and looks brand new.
• Wash the windows, inside and out. Repair any holes or tears in screens.
• Replace those family portraits with interesting art placed strategically throughout the house. Avoid leaving dead space on walls.

Throughout the House

• Declutter! Consider it pre-packing for your move. Box up books, clothes, and personal items and place them (neatly!) in the garage or — better yet — a rented storage unit.
• Don’t forget to include memorabilia in those decluttering bins. Family photos, diplomas, and the kids’ artwork should all go.
• Keep closets, basements, and attics as empty as possible to maximize the appearance of storage space.
• Transform underused areas of the house — the alcove under the stairs or the end of a hallway — into functional spots. Add a desk to create a mini office, or a chair and small bookshelf for a reading nook.
• Swap dim lights for high-wattage bulbs.
• Check every door, drawer, and cabinet to ensure they open and close easily. Swap out any faulty — or dingy — hardware.
• Damaged or aging hardwood floors? Replace damaged boards with new wood, sand down the entire floor, and re-stain.
• Do a deep (deep, deep) clean. Hire a professional cleaning service to clean your home from top to bottom — including carpets — before viewings.

Exterior

• Hang attractive house numbers that are legible from the road.
• Brighten up your porch with fresh paint or stain.
• Add a fresh coat of paint to the front door, preferably red, black, blue, or wood stain, so long as it complements the trim and doesn’t blend, says The Real Estate Staging Association. Steer clear of unconventional colors like purple.
• Buy a new doormat to welcome home buyers.
• Power-wash the house exterior, walkway, steps, driveway, and porch until everything sparkles.
• Make sure the locks and doorbell function.
• Make that mailbox look clean and welcoming, or get a new one.
• Plant lots of colorful blooms in attractive pots and planter beds.
• Trim back trees and shrubs from the approach to the front door.
• Whip that yard into shape with fresh sod or new seed.
• Store yard equipment and children’s toys out of sight.
• Repair shaky banisters.
• Get a hammock (or bocce ball game or raised fire pit) to show off how fun your yard can be.
• Dress up any imperfect planting area with mulch.
• Make sure entryway lights function and are free of cobwebs and insects.
• Hide trash cans, recycle bins, and garden hoses.
• Don’t forget your outdoor living space. Stage your patio like a second living room, with fashionable furniture, accent pillows, an outdoor rug, and other patio-friendly decor.

For Pet Owners

• Scrub those pet stains on the carpets and rugs until totally gone or replace them if necessary. Try cleaning formulas made especially for pet odors.
• Pet odors soak into your best friend’s favorite things. Completely remove pet beds (or Fido’s most-loved couch), blankets, toys, play structures, food bowls, and the like.
• Use air fresheners that eliminate odors, rather than simply mask them. There’s nothing worse than the smell of artificial pine with kitty litter undertones.
• Repair or remove any furniture that’s been scratched or gnawed on.
• Clean all pet “presents” from the yard.
• Keep cat boxes immaculate and hidden away, or — better yet — see how your feline-loving friends feel about a temporary houseguest and remove litter boxes altogether.
• Remove any dog or cat doors. Pets? What pets?
• When you leave the house for a viewing, take all the furry (or feathery or scaly) residents along with you.
• Make a pet hair sweep the last thing you do before you leave the house.

Day of Showing

• Add a seasonal touch. Simmer cinnamon sticks in the fall and set out fresh cut lilacs in the spring.
• Tidy like you’ve never tidied before.
• Avoid cooking any food for your own meals, but do bake some cookies or other baked goods to leave a welcoming aroma behind.
• Take off. After all that staging work, you deserve a trip to the spa while potential home buyers are busy falling in love with your house.

Sellers' Market Challenges

4 Curb Appeal Projects To Max Out Home Value

You’ve been spending so much time on projects inside your home (like that new shower you have to drag yourself out of), that your front yard is starting to scream for a bit of attention.

Poor neglected, thing.

You know your yard has some super curb appeal potential, but where to begin? 

Check out the National Association of REALTORS®’ 2016 Remodeling Impact Report: Outdoor Features (full disclosure: NAR is HouseLogic’s sponsor). It’s got some interesting data on how landscaping affects home value, especially those with tons of curb appeal. They beat out all indoor projects when it comes to adding value to your home!

Below are four projects with so much curb-appeal juice, any money you invest in them is likely to pay you back much more.

#1 Add or Replace a Few Design Basics
Every few years, you overhaul your closet, replacing your worn-out basics with a few new pieces to ramp up your wardrobe. Why not do the same with your yard? Give it a basic makeover so it has some good, classic, value-boosting “bones” to build upon. 

Landscape design basics like:

• A winding flagstone walkway
• A couple of stone planters (6 feet by 2 feet)
• A few flowering shrubs 
• A deciduous tree about 15 feet tall
• Quality mulch

Why you can’t go wrong: The median cost for this makeover is $4,750. But the recoup (how much more your house would sell for after doing this project) is $5,000! Pretty sweet, right?

#2 Add Color and Texture in the Right Places
Experts call it “softscaping.” But basically, it’s adding plants in a designed, intentional way that makes your yard interesting to look at year-round. 

It’s a great project if your yard is already in pretty good shape with some basic design elements mentioned above. 

A typical softscaping project includes:
• Five trees
• 25 shrubs
• 60 perennials
• Natural edging
• Boulder accents

Why you can’t go wrong: You’ll invest about $7,000, but you could recoup every cent in home value, according to the Report. Plus, here’s what the report doesn’t include: You’ll get super energy savings. 

Who doesn’t love lower utility bills?

Just three trees in the right location can save up to $250 a year in heating and cooling costs, says the source for energy-saving stats: the U.S. Department of Energy.

Shade trees help boost curb appeal 

#3 Build a Deck or Patio if You Don’t Have One
If you’re spending sunny days admiring the great outdoors from indoors, it’s time for a change to get you outside… like finally building that deck or patio you’ve been dreaming of.

Why you can’t go wrong: A patio costs about $6,400 and recoups 102%. A wood deck will cost $9,450 with a slightly higher recoup of 106%. Plus, how can you put a price on all those evening cookouts and Sunday brunches al fresco?

#4 Heap Loads of Love on Your Lawn
Yep, you read that right. Especially if you know you’re going to sell in the next year or so. 

It’s the easiest project to do — and it has a whopping ROI of 303%!

Lawn maintenance is simple:
• Fertilize
• Aerate 
• Weed
• Rake 

Why you can’t go wrong: It’s the cheapest project to do with an annual cost of only $330. Every year, you’ll reap the benefits of a lush, barefoot-friendly lawn. 

(But note that unlike the other landscaping features listed in this article — deck, patio, hardscaping, trees, etc. — you’ll only get that fabulous 303% ROI on your maintenance costs for the year right before you sell. That’s because lawn maintenance has to be repeated annually, unlike the other projects).

Avoid These Bedroom Designs

7 Ways to Make Your Home More Appealing to Buyers

When you're ready to sell your house, it pays to assess your home and make improvements before the for-sale sign goes in the yard. By doing so, you'll help buyers see the beauty of your home -- and that helps put the sold sign up faster. Especially in today's tough market for home sellers, attention to details and a willingness to go the extra mile can make all the difference.

 Here is a list of tips to make your home stand out from the rest.

Be objective

                                             

One of the hardest things for homeowners is to see their house from a buyer's perspective. If you can't be objective about how your home looks, take pictures of it. Take photos from the street, the kitchen, living room and master bedroom. These are the rooms that matter most to buyers.

Start at the front

                        

Give the front of your home a makeover. Hire a landscape company to freshen the grounds, trim shrubs and trees, and add mulching. Repaint the mailbox, add new house numbers and hide trashcans. These improvements help hook buyers at the curb, enticing them to view your home.

Add Life

Invest in good quality real or silk plants. Spindly plants are eyesores. Look in any d¿¿cor magazine and you'll notice how plants are placed attractively in the room. Use these as guides on what plants to buy and where to place.

Put Money Into Your Kitchen

Investing in the kitchen is one of the best returns on investment for homeowners. The kitchen is the one room that really excites buyers, so make it work for you by adding a new backsplash, fresh coat of paint on the cabinets and trendy pulls. Dated lighting, peeling laminate and crowded countertops will have buyers backing out of the house.

Set The Table

Model homes and homes in design magazines always feature a dining room table that's set, but few homeowners with homes for sale set the formal dining room table. Setting the table makes the room inviting and helps buyers imagine themselves in it.

Open The Door To Sales

The front door is the first place on your home a prospective buyer sees and touches when they arrive. Repainting or revarnishing the door and polishing up the hardware will create a vision of beauty and buyer anticipation because it says the house is cared for right up front.

Create A Focal Point In Every Room

Each room should have a feature that defines the space. A focal point helps visually draw buyers into the room -- and where the eyes go, the heart often follows. Using the photos you've taken earlier, plan a focal point for the main rooms of the house, including the kitchen.

Buyers Offer More For A Staged Home

The Renovations That Up Your Home's Value (and the Ones That Don't)

Is digging up the backyard to put in a pool worth it? What about upgrading a tired-looking kitchen with gleaming marble countertops? And what about installing high-tech speakers—throughout the house? If you’re planning to renovate your home, you may already be asking yourself these questions. But when it comes to increasing your home’s appraisal value, the answer to them isn’t always a resounding yes.

To help ensure that your reno dollars are well spent, the team at LearnVest asked real estate experts across the country to weigh in on the top five home improvement dos that can boost resale value—and five don'ts that just aren't worth the extra expense.

Reno Do #1: Upgrade Your Kitchen

All of our experts agree that a kitchen renovation should be at the top of your list, since it's the heart of a home—the room where families spend most of their time. But where to start? A couple of givens include upgrading to stainless steel appliances and installing countertops made from engineered stone or granite, because these fairly easy changes will improve the aesthetic appeal of the space. Details can also make a difference, like putting shiny knobs on cabinets and purchasing a sparkling new faucet for the sink.

Another wise kitchen upgrade? Knocking down a full or half wall, so you can connect the kitchen to a den or living room. “It makes the kitchen feel more spacious," says Phyllis Rockower, owner of the Real Estate Investors Club of Los Angeles in California. "If you’re cooking, you can still hear what people are saying during a party, or keep an eye on your kids while they’re playing.”

Reno Do #2: Revamp Your Bathroom

A toilet that looks old, cracked or dirty (or doesn’t flush properly) is a turn-off—and the same goes for a vanity, which should be eye-catching and practical. “Install a vanity that recesses into the wall, so it saves space,” advises Alen Moshkovich, a broker for Douglas Elliman in New York City.

Proper lighting can also be a great value booster, such as adding a window in the bathroom, so natural light can illuminate the space. There's one other more simple fix that homeowners tend to overlook: Reglazing a tub, rather than getting a new one, will save you money and upgrade the look of your bathroom.

Reno Do #3: Go Greener

“In the last four to five years, there’s been a growing demand for green housing,” says Tom Ferstl, a commercial and residential real estate appraiser at Ferstl Valuation Services in Little Rock, Arkansas. “Making your home more energy efficient is a plus—anything that helps keep heat in during the colder months and out during the warmer months will help.”

The changes can be small, such as adding storm doors or a ceiling fan in each room. Or they can be large, like double- or triple-paning your windows. Want more ideas on how to renovate your home in a green way? Check out Regreen, a site created by the American Society of Interior Designers Foundation and the U.S. Green Building Council.

Reno Do #4: Invest in a Sprinkler System

Many homeowners don’t want to be bothered with maintaining a stunning, landscaped garden, so planting tons of tress, bushes or flowers isn’t necessarily going to elevate your home’s value. But everyone wants green grass, so adding a sprinkler system that automatically turns on and off is a good investment, says Ferstl, because it allows a buyer to keep a lawn looking good without much work.

Reno Do #5: Install Built-In Speakers

High-tech homes stand out and will impress buyers. Your best bet is to centrally wire a sound system in your home, and put a speaker in every room, so you can control music from anywhere in the house with one remote. Rockower also suggests installing surround sound in the den or living room (basically wherever you watch TV), which makes watching movies or sporting events more exciting.

Reno Don't #1: Put in a Pool

You may think that a beautiful backyard pool will make buyers flock to your home, but many families don’t want to deal with the maintenance or the liability of an accidental drowning. “It’s an especially bad investment in the northeast and the northwest, where you have few hot months to actually use a pool,” says realtor Brendon DeSimone, a member of the National Association of Realtors and an expert contributor to Good Morning America and HGTV.

Reno Don't #2: Convert a Bedroom

Turning a bedroom into a room that’s specific to your interests—such as a wine cellar or a library—is a risk. Once you start embedding wine refrigerators or bookshelves and customizing the space's structure, the room becomes less valuable, because the next owner may not want to spend money renovating that room. “If you insist on doing it, at least make it easy to ‘un-do’ later when you want to sell,” says DeSimone.

Reno Don't #3: Lay Down Carpet

Don’t bother carpeting any room in the house. “Natural hardwood flooring is what everyone wants these days,” says Moshkovich. Plus, wood floors tend to be easier to clean, they don’t show as much dirt and they’re better for family members who suffer from allergies. “If you're looking to save, engineered wood is cheaper than 100% natural wood—and it still looks good,” suggests Moshkovich.

Reno Don't #4: Install Ornate Lighting

Buyers like bright lighting, but if you empty your wallet buying an over-the-top chandelier, you probably won’t get most of your money back, notes Ferstl. “Some people go all out when decorating a dining room, but the next owner may want to turn the dining room into a bedroom, so it’s often a waste," Rockower says. Her recommendation: Opt for subtle high hat or recessed lighting or get a basic chandelier or hanging fixture from Home Depot—you can find a bunch that look good for under $100.

Reno Don't #5: Redo Your Garage

“I’ve seen some people turn garages into family rooms or play rooms—and then have a hard time selling their house,” says DeSimone. “Most people want a garage to stay a garage.” Not only do buyers want to protect their cars from rain and snow, but they also need a place to put dirty outdoor stuff, like lawnmowers, leaf blowers, shovels and garbage cans. Bottom line: Don't go glam with your garage!

3 reasons sellers shouldn't fear disclosures

There is no reason for sellers to stress about accurately and completely filling out disclosure statements

To disclose or not to disclose — that is the question. Actually, that isn’t the question. 

There should be no question in a seller’s mind whether to disclose an item or not. The short answer: If you’re aware of an issue, disclose it.

But first let’s talk about what exactly a disclosure is, and why, as a seller, it can be your best friend.

What is a disclosure?

A disclosure, in terms of real estate, is an opportunity for a seller to legally communicate any known property issues to prospective buyers.

Makes sense, right? A prospective buyer is ponying up some serious cash to buy a new home, and knowing its history and issues plays a key role in the selection process.

No pain, all gain?

Historically speaking, disclosing property flaws has been viewed by sellers as a pain point. (No surprise there.) Telling prospective buyers all the individual items “wrong” with a property goes against the natural inclination to display the property in the best light.

However, rather than view the disclosure process as an unpleasant task, sellers should eventually come to embrace the process.

Here are three reasons why there’s no need to be afraid to disclose your heart out.

1. Avoid potential legal action

Disclosure documents are a seller’s opportunity to tell all and paint an accurate picture of the property for sale. They also are a vehicle to protect yourself legally from any issues that may arise down the road. The more thorough the information, the better your protection.

Julie Sears, a recent seller in the Seattle market, experienced this firsthand. After accurately disclosing a leaky window in the living room and agreeing to a price reduction, she was surprised to be contacted by her broker after closing.

“The new homeowner was upset about water damage from a recent heavy thunderstorm and was seeking compensation for repairs,” says Sears. “Since I had disclosed the issue upfront, I was protected from any legal action regardless of the subsequent damage.”

This is a perfect example of the legal protection a seller can expect when accurately disclosing issues.

2. Give a sense of security

A disclosure statement that is barely filled in sends a message to the buyer — and it’s not reassuring: the seller is either uninformed about the property or unwilling to provide information.

Make it a point to sit down and thoroughly fill out your disclosure statement. Use this opportunity to convey your knowledge about the property to the buyer.

Accurate information provides the buyer a sense of security and demonstrates that you are upfront and thorough.

“Remember that no property is completely perfect. Revealing your property’s potential flaws will not drive away every potential buyer. The disclosure statement simply allows you to enter fair negotiations with buyers,” says FSSK, a Minneapolis law firm that specializes in real estate.

Disclosing flaws places them squarely on the table, allowing both parties to either work through them together or walk away. Whichever occurs, it gets you one step closer to finding a buyer and closing the deal.

3. Gain commitment

Closing a home purchase transaction is rife with small hurdles. Clearing each one is a victory as you proceed through escrow and nearer to the closing date.

Deliver your disclosure statement early in the process — preferably when you return a copy of the executed contract to the buyer. Overcoming this hurdle early places you that much closer to concluding a successful transaction.

If the buyer will not sign off on the disclosures and would like to terminate the agreement, it’s best to know this early so you both can move on.

Let’s be honest: all properties have flaws. But if you can embrace the process and work with prospective buyers to fairly negotiate, you’ll be able to close the deal more quickly and protect yourself from future headaches.

Both you and your karma will be glad you did.

Deciding to sell

You've probably already considered your personal reasons for selling. Now you need to take into account the other factors involved, such as market conditions, your property's value and tax implications. 

Unless you're locked into selling your home (e.g., you've already accepted a job offer in another city), it's a good idea to look at the whole picture before deciding to sell.

Assessing Market Conditions

There's a rule of thumb to keep in mind when deciding to sell your home: Your home is only worth what a qualified buyer is willing to pay at the time it's on the market. The current real estate market fluctuates based on supply and demand, interest rates, general economic conditions, and other factors. The same house may sell for more or less under a different economy. Your REALTOR® can inform you of the going price for homes in your area at the current time; this data is included in a comparative market analysis (link to Appraisals and CMAs).

Tax Implications of Selling

There are many dynamics that can affect your tax liability upon selling your home. These issues include whether you purchased the home or inherited it, if you used your home for business or rental purposes, costs associated with selling your home, and any home improvements and additions that you've undertaken.

The Federal Taxpayer Relief Act of 1997 provides capital gains tax exclusions of up to $500,000 for married taxpayers filing jointly and $250,000 for single taxpayers or married taxpayers filing separately. Current capitol gains rates are 20 percent for those in upper tax brackets and 10 percent for those in lower tax brackets. Overall capital gains rates have been lowered even further -- to 18 percent and 8 percent respectively -- for assets acquired after December 31, 2000, and held five years or more.

To qualify for this tax break, you must have used the home as your primary residence for at least two of the prior five years; these two years don't have to be consecutive. If you relocate for your job but don't meet the requirement, you may be allowed to take a capital gains exclusion proportionate to your circumstances. This exclusion is not a one-time benefit; you may take advantage of it once every two years as long as you meet the qualifications.

 The tax rules differ when you sell a home that you've inherited. If you sell the inherited home for a profit, you're required to pay federal and state taxes on the gain. If you keep the house as a second residence and/or eventually move into it after renting it to tenants, you may take the $250,000/$500,000 capital gains tax exclusion if you meet the requirements. When you're deciding what to do with inherited property, you should consider the current estate tax laws and basis practices.

Beyond these general rules, it's wise to discuss your home's sale with a tax professional who can advise you on tax benefits in more detail.

Timing Your Decision to Sell

Because most sellers finance a new home purchase with the sale of their present home, they usually put their homes on the market before they begin their search for a new home. Learning the price you can expect from the sale often sets the pricing parameters for your new home search.

Obviously, it's not wise to wait until the sale on your property closes completely before beginning to look for your new home. Timing your search properly with the buyers' transaction can make the difference between having the available funds to buy a new home and cutting down on the interim period between homes.