Sunday, January 17, 2010

Potential red flag statements from sellers - Disclosures

Most states have requirements for sellers to provide disclosures to prospective buyers However, according to the Wall Street Journal, there are some sellers who may not be as forthcoming as they should in providing full information in their disclosures.



Exaggerations may be used to draw more clients to homes by using generalities such as describing a room or lot as "big." One should use caution with such general statements and ask for more exact dimensions or take their own measurements.



Disclosures - Making statements that there has never been significant damage by a disaster can be checked by the buyer. Buyers can purchase a report from Comprehensive Loss Underwriting Exchange (CLUE) that provides a report of the home's property damage, according to the Journal article.



Taxes and heating costs - Buyers can check tax records to get updated information on the tax costs of homes and property. Many electric companies are willing to provide an average cost of electricity charges to those who simply provide an address. This is true in Hamilton County and with the Electric Power Board.



The bottom line is that one should use caution and careful examination when statements are made and be aware that some information may be left out of disclosures. Be your own advocate and look with a careful eye at the information you read in today's tough market.

Call me, Pat Branham, for your buying and selling needs in the Greater Chattanooga and North Georgia area. I will work hard for you and provide honest information to the best of my ability.

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