Because “ignorance is bliss” ?
This practice is okay for an owner occupant, but should not be allowed for executors in my opinion.
Home inspectors will like that. How about if a house is sold before the parent dies but after they lived in a senior facility for a given amount of time? Or by someone who did winter in the house? Or someone who bought another house and moved some period of time before moving? How long do you need to live in a house to know enough so that an inspection isn’t necessary?
I sold my parents’ condo last year in FL. There was an option to say “unknown” on the disclosure report list and that’s the option I selected for almost everything, unless I knew for sure. No one suggested doing an inspection first. Post buyers inspection, they only wanted us to do was one last service to the HVAC unit, which was under 2 years old.
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When we sold our CA house in 2008, the realtors suggested we have a very good inspection done and fix whatever showed up. The receipts for the repairs were shown to buyers.
The market was bad then, but I think the realtors advice was good.
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A friend recommend an inspection by the seller before listing, so they can fix the minor issues themselves, and become aware of any major issues. Becoming aware of major issues, allows them to either repair, or disclose. If found after an offer is received (during buyers inspection), it may result in higher repair costs, lower selling price than the repair would cost, more negotiation, and ultimately more time off the market.
This was not realtor’s advice, but based on their own experience from the seller POV. As a buyer, I would still want my own inspection.
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Right now you may have a problem finding someone to fix any issues (before or after you list) because pretty much every home contractor I have talked with recently is swamped with work. Your inspector may find things that the buyer’s inspector doesn’t. And to a degree, inspectors want to show value. So they want to find issues to be fixed. If you have already fixed certain things, the buyer’s inspector may look to find less obvious (and potentially more costly) fixes.
When we bought our first house, our inspector gave us a 15 page report that had all kinds of issues listed on it. It was an old house so none of it was a surprise. Some windows were painted shut. Many outlets were not grounded. Had a fuse box rather than breakers for some of the electric. Furnace was old (worked fine but was inefficient). Five years later when we sold, a buyers inspector produced a one page report that listd 8 items on it (including asking for a warranty on the old furnace). Ultimately, she had changed her mind after signing a contract to buy a old house and wanted out of the agreement. Cut her loose after requesting copy of her inspection report and sold to someone a few days later without any of those issues being addressed.
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Yep, that’s a biggee. However, in CA, there are SO many disclosures about known house defects, Natural and Man-Made Hazards, market conditions, agency/agent representation/relationships, lead based paint, water heater and smoke detectors, property condition and inspection, etc. that it would be pretty difficult to get an E&O suit far enough along without a court tossing it.
Generally, to facilitate quicker transactions around here, buyers are given almost all the disclosures, inspections (roof, house, termite/dryrot), preliminary title report, etc. before an offer is made to the seller. All that paperwork must be signed off before the seller will consider an offer in a competitive market.
IMO, just as a person interested in real estate, I’d advise a seller to pay an independent 3rd party inspector and get all the inspections up front and in the buyer’s hands before making any offers. The buyer can use the seller’s inspections or make their offer contingent on getting their own inspections.
Of course, the buyer can get their own inspections and there’s that disclosure that advises the buyer to get their own inspections, but in a competitive market, any contingency, can be a competitive disadvantage.
@Jolynne_Smyth The market may have just hit the late summer “lull,” when kids go back to school and parents are busy with family stuff. Or maybe the market is changing, we just don’t know. Around here the market run-up in the past 1-2 years has been huge, 20-30% +/-, so the market may need a time out.
As an executor, it’ll be extremely difficult to prove a latent (hidden or concealed) defect against you, as an executor. If you don’t live in the house, then how much can you know about latent defects?
Obviously, if the drywall has large significant cracks across the entire wall, the roof has caved in, the door frames are obviously not square, ponding water and/or sewage, etc., then those are patent (open and obvious) defects or should be known and disclosed.
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We went to look at the townhome in our neighborhood that just went on the market over the weekend. They are asking $925K for it and it has not been updated at all. We assume they are asking that amount since that was the amount of the last unit that sold in the complex. That unit had $200K in updates. H and I thought it was crazy that the sellers spent that much to update the place they were not going to live in. We will be interested to see if the non updated unit sells quickly and for how much. Some are saying that the market here in San Diego has cooled a bit.
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In real estate, there’s a “theory of regression” and “progression.”
The priciest houses will regress towards the mean or are negatively-affected by the locale. And the least expensive homes in a neighborhood will progress to the mean or are positively affected by the higher-end properties.
Generally, you don’t want to over-improve a home well beyond what the neighborhood can support in price. But you will see the effects in real time.
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@showmom858 Keep us posted. I’m interested in how much it sells for.
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Thanks all for the thoughtful insights! From all I’ve heard (including from the code enforcement officer in the town where my parentsl house is!) - as an executor I shouldn’t get a home inspection, since then I’m clearly on notice about ‘all the things.’ We’ve been doing cosmetic improvements for a while now, but I’ve been told that doesn’t translate into an obligation to know all the issues (that I would if I lived there).
I’m really gambling that the last $9k I’m spending on making the kitchen clean and fresh and replacing old carpet (plus a few other things) will pay off with a higher sale price. So relieved to hear the possibility of a late summer lull rather than a long-term down-turn! 
Really most likely for non-disclosure of a defect or other known condition (anything running the gamut from a basement flooding yearly during heavy rains, a neighbor’s dog barking continuously, or a sex offender living down the street - it’s amazing what people try to sue for). But you are right that as executor and not someone who is living there, you’re in a better position.
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Everything (just about) in CA is disclosed in the TDS (Transfer Disclosure Statement) and Supplemental, plus a disclosure for Megan’s Law, which will disclose approx. locations of registered sex offenders, if you desire to access the website.
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Sorry, I may have missed it, but Jolynne_Smyth hasn’t indicated what state the house she is selling is in, has she? I’ve been trying to provide more generic, non-state specific answers as the CA real estate market is a bit unique in many ways.
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As far as know, no @Jolynne_Smyth hasn’t mentioned the state. But he/she has said that he/ she will employ an attorney in her real estate transaction, who could use none, some or all of the CA-type disclosures to protect her/himself.
You brought up the sex offender disclosure, so I mentioned CA law. There may be a “Megan’s Law” type disclosure/website in the OP’s state.
I know I would disclose wherever I was located. That’s why I mention it/them. I’m just passing along info that would/could be appropriate in any locale.
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One thing that I remembered, re: E&O insurance that brokerages have.
The OP should check her/his own homeowner’s insurance policy and/or any umbrella or personal excess policy. He/she may have protection there for this type of transaction.
Or could certainly get a new insurance policy to protect him/herself before putting the house on the market.
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Thanks so much for all these tips.
I will review the homeowners’ insurance policy. I’m not quite sure how to tell if we’d need an Errors and Omissions supplement policy but will check into it!
We are not in CA (whew!) and these discussions have made me pretty much remove CA from my ‘Stage 2 of life location options’ list!!
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If you are using a real estate attorney in connection with the sale, I would ask him/her what disclosures are required/recommended. Going beyond what is required or what is typical can create issues. You disclosed this and weren’t obligated to do so thus why didn’t you disclose that. And if there is no requirement to act, you may have issues if you do so and are found to be negligent in doing so.
Seems to me the risk you run with “disclose the world” approach is that people tune out to everything. In terms of sex offenders, does California law require seller just disclose the website or what is on the website? If the former, is there liability only if the buyer didn’t otherwise know the site existed? If the latter, why would the seller be obligated to do something the buyer could do with as much accuracy/info as the seller? I guess I could see if the buyer knew of an offender in the area that wasnt on the website and didn’t say anything. But beyond that.
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A local real estate attorney I consulted with said: sell ‘as is’ and limit disclosures as executor (which is proper and ethical since you can’t be expected to know all). I can see there is some nuance to all this which makes me more motivated to find a very experienced real estate attorney (not the young guy I talked to who did it ‘sometimes’).
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When I’m investing the huge sums of money necessary to buy real estate in CA, I’m not one to “tune out” info. If you have small kids, then looking into good school district in a neighborhood without sex offenders seems like fast and simple thing to do. Those are Items 1A and 1B in my due diligence. But we’re all built differently.
The Megan’s Law disclosure points a buyer to a website where a home buyer can do their research. The onus is on the buyer once the disclosure is signed.
Apologies to the OP for taking the thread off topic.